TITLE
HOLD a public hearing and consider an ordinance amending the FY 2019 Annual Budget and Plan of Municipal Services of the City of Killeen by increasing revenue and expenditure accounts in Aviation.
SUMMARY
DATE: December 11, 2018
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
VIA: Miranda Drake, Director of Budget
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
The Killeen-Fort Hood Regional Airport (KFHRA) staff has negotiated an inter-governmental support agreement (IGSA) with the U.S. Army Garrison at Fort Hood for maintenance on Robert Gray Army Airfield.
The IGSA is a win-win for both organizations. The Army will be getting scheduled, preventative airfield maintenance at a savings and the KFHRA will receive additional revenues. This agreement has revenue and expenditures for each year of the agreement. They are as follows:
|
|
Revenue |
|
US Department of Defense |
$517,540 |
|
TOTAL |
$517,540 |
|
Expenditures |
|
|
Full-time Salaries |
$58,148 |
|
Medical Insurance |
9,883 |
|
Dental Insurance |
552 |
|
Life Insurance |
36 |
|
Retirement - TMRS |
6,484 |
|
Social Security |
3,605 |
|
Medicare |
843 |
|
Workers Compensation |
727 |
|
Uniforms & Clothing |
2,200 |
|
Fuel |
2,000 |
|
Airport Diesel Fuel |
5,000 |
|
Minor Tools |
1,000 |
|
Pavement Marking |
162,000 |
|
Runway/Taxiway Maintenance |
43,500 |
|
Equipment Rental/Lease |
1,000 |
|
Engineering Services |
25,000 |
|
Machinery & Equipment |
142,000 |
|
TOTAL |
$463,978 |
THE ALTERNATIVES CONSIDERED:
(1) Approve the budget amendment to appropriate funding to support the IGSA with the U.S. Army Garrison - Fort Hood; or (2) Do not approve the budget amendment.
Which alternative is recommended? Why?
Alternative 1 is considered the prudent course of action. The revenue for this project exceeds the expenditures.
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
This agreement has revenue and expenditures for each year of the agreement. The revenue for the agreement for the first year will be $517,540 and will increase contractually 2% per annum for the duration of the agreement.
What is the amount of the expenditure in the current fiscal year? For future years?
FY 2019 - $463,978
FY 2020 - $400,019
FY 2021 - $403,143
FY 2022 - $406,395
FY 2023 - $409,784
Is this a one-time or recurring expenditure?
Recurring for each year of the agreement, however, the expenditure will vary dependent upon material and equipment cost.
Is this expenditure budgeted?
A budget amendment is required.
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 budget amendment.
RECOMMENDATION:
Staff recommends that the City Council approve the ordinance amending the FY 2019 Annual Budget and Plan of Municipal Services of the City of Killeen increasing revenue and expenditure accounts in Aviation.
DEPARTMENTAL CLEARANCES:
Aviation
City Attorney
Finance
ATTACHED SUPPORTING DOCUMENTS:
Ordinance