TITLE
HOLD a public hearing and consider an ordinance amending the FY 2015 Annual Budget and Plan of Municipal Services of the City of Killeen by increasing Certificate of Obligation 2011 fund accounts by $486,503 to finance Stagecoach Road Reconstruction Phase II and Elms Road Extension.
SUMMARY
AGENDA ITEM
Budget Amendment for Stagecoach Road Reconstruction Phase II and Elms Road Extension
ORIGINATING DEPARTMENT
Finance
BACKGROUND INFORMATION
Various projects are funded through the Capital Improvement Program (CIP). The CIP is funded through the issuance of revenue bonds, general obligation bonds and certificates of obligation and can be used only for purposes outlined in the bond covenant.
In July 2013, the council approved staff recommendation to award a contract to McLean Construction for the Stagecoach Road Reconstruction Phase II (CCMR 13-087R).
In October 2014, the council approved staff recommendation to award a contract to Gary W. Purser Construction for the Elms Road Extension Project (CCMR 14-139R).
DISCUSSION/CONCLUSION
The City of Killeen approves the CIP budget along with the Annual Budget and Plan of Municipal Services in September each year. Although staff provides estimates based upon the best information at the time, the budget needs to be amended periodically as more accurate information becomes available. Changes in scope, schedules, and the project having remaining funds due to favorable bids or not enough funds due to unforeseen events require that a budget amendment be approved by City Council.
Additional funds are needed to cover contingency-related expenditures and change orders for the Stagecoach Road Reconstruction and Elms Road Extension projects.
FISCAL IMPACT
Unspent interest earnings from several older bond funds will be utilized to finance this project and have been transferred into Fund 343 via a residual equity transfer approved by the Council on October 21, 2014. Elms Road project funding is currently budgeted in Fund 347. This budget amendment consolidates the funding into Fund 343.
Revenues
Account |
Description |
Original Budget |
Change |
Amended Budget |
343-0000-371-93-29 |
Transfer In (329) |
$0 |
$144,513 |
$144,513 |
343-0000-371-93-33 |
Transfer In (333) |
$0 |
$607 |
$607 |
343-0000-371-93-34 |
Transfer In (334) |
$0 |
$19,397 |
$19,397 |
343-0000-371-93-47 |
Transfer In (347) |
$0 |
$300,000 |
$300,000 |
343-0000-371-93-94 |
Transfer In (394) |
$0 |
$7,704 |
$7,704 |
343-0000-371-93-95 |
Transfer In (395) |
$0 |
$14,912 |
$14,912 |
Total |
|
$0 |
$486,503 |
$486,503 |
Expenditures
Account |
Description |
Original Budget |
Change |
Amended Budget |
343-3490-800-58-36 |
Stagecoach |
$13,980,995 |
$215,000 |
$14,195,995 |
343-3490-800-58-38 |
Elms Road |
$2,539,323 |
$271,503 |
$2,810,826 |
Total |
|
$16,520,318 |
$486,503 |
$17,006,821 |
RECOMMENDATION
Staff recommends that City Council approve the attached ordinance amending the FY 2015 Annual Budget and Plan of Municipal Services increasing various capital project fund revenues and expenditures by $486,503.