File #:
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PH-16-045
Version:
1
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Name:
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FY 17 Budget Amendment for Termination of Fleet Funding Program
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Type:
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Ordinance/Public Hearing
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Status:
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Passed
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On agenda:
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12/6/2016
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Final action:
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12/6/2016
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Title:
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HOLD a public hearing and consider an ordinance amending the FY 2017 Annual Budget and Plan of Municipal Services of the City of Killeen for the termination of the Fleet Funding Program.
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TITLE
HOLD a public hearing and consider an ordinance amending the FY 2017 Annual Budget and Plan of Municipal Services of the City of Killeen for the termination of the Fleet Funding Program.
SUMMARY
AGENDA ITEM
FY 2017 Fleet Funding Program Termination Budget Amendment
ORIGINATING DEPARTMENT
City Manager / Finance
BACKGROUND INFORMATION
On January 26, 2016, the City Council approved the establishment of an internal service fund and a Fleet Funding Program (FFP). The FFP consists of two components: fleet replacement for the purchase of fleet, and fleet operations for the maintenance of fleet. The goal of the FFP is to ensure that adequate funds are available to purchase and maintain City vehicles. A total of $5,500,000 was transferred into the internal service fund to start the program.
After the FFP was established, the outlook on the City’s financial health changed significantly. The strategy is now shifting to focus on the City’s current financial condition. Part of the financial recovery process is to address immediate budget shortfalls. The newly adopted FFP is intensifying the strain on the operating funds.
DISCUSSION/CONCLUSION
The recommendation is to terminate the FFP and return the remaining funds to the original source on a pro-rata basis. Fleet Operations (e.g. technicians) will remain in the internal service fund and will be supported by the operational funds that receive services from the department. Since the General Fund did not make a contribution towards the FFP in FY 2017, a total of $643,777 will be left in the internal service fund to cover the General Fund’s contribution towards fleet operations. That leaves an estimated balance of $1,377,665 to be returned to the original source.
At the inception of the FFP, Solid Waste contributed $1,700,000, Water & Sewer contributed $2,800,000, and $1,000,000 was contributed from the 2014 Certificates of Obligation bond proceeds. Reducing the initial contribution made by the respective funds by the amount of vehicles purchased for the benefit of each fund, leaves a pro-rata remaining contribution amount of 35.7% for Solid Waste and 64.3% for Water & Sewer. The $1,377,665 in remaining funds will be distributed based on the pro-rata remaining contribution. The Solid Waste fund will receive $491,826 (35.7% x $1,377,665); the Water & Sewer fund will receive $885,839 (64.3% x $1,377,665).
FISCAL IMPACT
The budget amendment will allow for the transfer of funds back to the Solid Waste and Water & Sewer funds. The following budget changes will be made:
Revenues |
Account Number |
Description |
Budget |
Change |
Amended |
601-0000-371.92-14 |
Transfer from HOT |
$20,000 |
($19,136) |
$864 |
601-0000-371.95-40 |
Transfer from Solid Waste |
$2,200,000 |
($1,517,515) |
$682,485 |
601-0000-371.95-50 |
Transfer from W/S |
$800,000 |
($708,570) |
$91,430 |
601-0000-371.95-75 |
Transfer from Drainage |
$300,000 |
($281,714) |
$18,286 |
540-0000-371.96-01 |
Transfer from Fleet ISF |
$0 |
$491,826 |
$491,826 |
550-0000-371.96-01 |
Transfer from Fleet ISF |
$0 |
$885,839 |
$885,839 |
Total Revenues |
$3,320,000 |
($1,149,270) |
$2,170,730 |
Expenses |
Account Number |
Description |
Budget |
Change |
Amended |
601-0505-521.61-10 |
Aviation Vehicles |
$59,500 |
($59,500) |
$0 |
601-2050-411.61-10 |
Utility Collection Vehicles |
$28,000 |
($28,000) |
$0 |
601-2130-460.61-10 |
Purchasing Vehicles |
$25,500 |
($25,500) |
$0 |
601-2132-460.61-10 |
Custodial Vehicles |
$33,000 |
($33,000) |
$0 |
601-2133-460.61-10 |
Fleet Operations Vehicles |
$27,700 |
($27,700) |
$0 |
601-3020-424.61-10 |
Golf Course Vehicles |
$30,350 |
($30,350) |
$0 |
601-3025-425.61-10 |
Parks Vehicles |
$30,350 |
($30,350) |
$0 |
601-3025-425.61-35 |
Parks Equipment |
$33,342 |
($33,342) |
$0 |
601-3420-436.61-10 |
Water/Sewer Vehicles |
$36,500 |
($36,500) |
$0 |
601-3435-432.61-10 |
Engineering Vehicles |
$33,000 |
($33,000) |
$0 |
601-3440-434.61-10 |
Traffic Vehicles |
$29,560 |
($29,560) |
$0 |
601-3445-434.61-10 |
Streets Vehicles |
$193,766 |
($193,766) |
$0 |
601-3448-434.61-10 |
Drainage Vehicles |
$251,000 |
($251,000) |
$0 |
601-3460-439.61-10 |
Residential Serv. Vehicles |
$359,286 |
($359,286) |
$0 |
601-3465-439.61-10 |
Commercial Serv. Veh. |
$30,500 |
($30,500) |
$0 |
601-3475-439.61-10 |
Transfer Station |
$27,161 |
($27,161) |
$0 |
601-4052-450.61-10 |
Building/Inspection Veh. |
$28,671 |
($28,671) |
$0 |
601-6000-441.61-10 |
Police Vehicles |
$1,589,910 |
($1,589,910) |
$0 |
601-7070-442.61-10 |
Fire Vehicles |
$260,000 |
($260,000) |
$0 |
601-0000-470.95-40 |
Transfer to Solid Waste |
$0 |
$491,826 |
$491,826 |
601-0000-470.95-50 |
Transfer to Water/Sewer |
$0 |
$885,839 |
$885,839 |
Total Revenues |
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$3,107,096 |
($1,729,431) |
$1,377,665 |
RECOMMENDATION
Staff recommends that City Council approve the termination of the Fleet Funding Program and the corresponding budget amendment that permits the remaining funds to be distributed back to the Water/Sewer and Solid Waste funds.
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