Title
HOLD a public hearing and consider an ordinance amending the FY 2023 Annual Budget of the City of Killeen to adjust revenue and expenditure accounts in multiple funds.
Summary
DATE: December 6, 2022
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Director of Budget
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
The following budget amendment addresses two major initiatives that includes:
1. allocating additional ARPA funding for the Small Business Relief Grants and the Central Texas Alcohol Rehabilitation Center, and
2. appropriates Tax Increment Reinvestment Zone (TIRZ) Funds for Phase I of the Rancier Avenue project.
1. In the FY 2022 Budget, $1,000,000 of American Rescue Plan Act (ARPA) Funds were budgeted for the Small Business Relief Grants, as well as the North Killeen Downtown Small Business Grant. $965,812 was spent on the North Killeen Downtown Small Business Grants. In addition, there were $22,798 in change orders for the North Killeen Downtown Small Business Grants bringing the overall total to $988,610. $177,225 in business relief is recommended for the Small Business Relief Grants. Due to the additional funds added by City Council for the North Killeen Downtown Small Business Grants, an additional $165,835 is needed to fund the difference. ARPA Funds are available to cover this amount.
On November 29, 2022, City Council provided a motion of direction to appropriate $70,000 of funding for the Central Texas Alcohol Rehabilitation Center. ARPA Funds are eligible for this initiative and are available to appropriate.
Revenues will be amended as follows:
|
Revenues |
|
|
Department of Treasury - ARPA |
$235,835 |
|
TOTAL |
$235,835 |
Expenditures will be amended as follows:
|
Expenditures |
|
|
Business Assistance |
$165,835 |
|
Central Texas Alcohol Rehabilitation Center |
70,000 |
|
TOTAL |
$235,835 |
2. On September 8, 2022, the TIRZ Board voted 5-0 to appropriate up to $1 million in TIRZ funding for the design of Phase I of the Rancier Avenue project. This budget amendment appropriates $1,000,000 needed for the professional services agreement to fund the schematic design of the Rancier Avenue Replacement and Streetscaping Improvement project.
Expenditures will be amended as follows:
|
Expenditures |
|
|
TIRZ Fund - Design/Engineering |
$1,000,000 |
|
TOTAL |
$1,000,000 |
THE ALTERNATIVES CONSIDERED:
Option 1 - Do not approve the ordinance amending the FY 2023 Annual Budget.
Option 2 - Approve the ordinance amending the FY 2023 Annual Budget.
Which alternative is recommended? Why?
Option 2 is recommended to approve the ordinance amending the FY 2023 Annual Budget.
CONFORMITY TO CITY POLICY:
The City’s Financial Governance Policies, Section V. Budget Administration (B)(1) states that City Council may amend or change the budget by ordinance.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
This budget amendment will appropriate $165,835 of ARPA funding for the Small Business Assistance Relief Grants, $70,000 of ARPA funding for the Central Texas Alcohol Rehabilitation Center and appropriate $1,000,000 of the Tax Increment Reinvestment Zone Funds as approved by the TIRZ Board to fund Phase I of the Rancier Avenue project.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Upon approval of the attached ordinance amending the FY 2023 Annual Budget
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Upon approval of the attached ordinance amending the FY 2023 Annual Budget
RECOMMENDATION:
City Council approve the ordinance amending the FY 2023 Annual Budget.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance