Title
HOLD a public hearing and consider an ordinance amending the FY 2023 Annual Budget of the City of Killeen to increase revenue and expense accounts in multiple funds.
Summary
DATE: June 20, 2023
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Assistant Director of Finance
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
This budget amendment addresses appropriation of additional funds for ongoing litigation as well as funding for three Aviation projects:
1) Legal expenses related to the marijuana enforcement ordinance will exceed $50,000. This budget amendment appropriates an additional $50,000 in funding to cover the additional expense. The offset to this additional expense is interest income.
Revenues
|
Interest Income |
$50,000 |
|
TOTAL REVENUE |
$50,000 |
Expenses
|
Legal Services$50,000 |
|
|
TOTAL EXPENSE |
$50,000 |
2) Solar Project. Appropriate revenue for an Airport Terminal Program grant from the Federal Aviation Administration (FAA) and the offsetting project expense. Appropriate the required match from the Customer Facility Charge Fund to cover the rental car facility portion of the project.
Revenues
|
USDOT-FAA$5,000,000 |
|
|
TOTAL REVENUE |
$5,000,000 |
Expenses
|
Design/Engineering$27,900 |
|
|
Construction |
4,972,100 |
|
CFC Projects |
1,162,886 |
|
TOTAL EXPENSE |
$6,162,886 |
3) Corporate Hangar Project. Appropriate revenue and expense for a Military Airport Program grant amendment from the FAA for $39,801 for additional design/engineering costs. The original grant has $6 in remaining funds that this budget amendment will appropriate.
Revenues
|
USDOT-FAA$39,801 |
|
|
TOTAL REVENUE |
$39,801 |
Expenses
|
Design/Engineering $39,801 |
|
|
Design/Engineering |
6 |
|
TOTAL EXPENSE |
$39,807 |
4) HVAC Project. Appropriate revenue and expense for an Airport Improvement grant amendment from the FAA for $81,645 for additional construction costs. The original grant has $8,187 in remaining funds that this budget amendment will appropriate.
Revenues
|
USDOT-FAA$81,645 |
|
|
TOTAL REVENUE |
$81,645 |
Expenses
|
Construction$81,645 |
|
|
Construction |
8,187 |
|
TOTAL EXPENSE |
$89,832 |
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 $50,000 for additional legal services related to the marijuana enforcement ordinance, FY 2023 expenses in the amount of $6,162,886 for the Solar Project, $39,807 for the Corporate Hangar Project, and $89,832 for the HVAC 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