ML!:J' ~,na~ ~ PASSED this~ ay ojanw ~, 2017, upon first reading. - til -. ;/) 28~'- -st: - ~

Transcription

1 1 2 ORDINANCE 3, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM 6 BEACH GARDENS, FLORIDA AMENDING THE CITY OF PALM 7 BEACH GARDENS' BUDGET FOR THE FISCAL YEAR BEGINNING 8 OCTOBER 1, 2016, AND ENDING SEPTEMBER 30, 201 7, 9 INCLUSIVE; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY 10 CLAUSE, AND AUTHORITY TO CODIFY; PROVIDING AN 11 EFFECTIVE DATE; AND FOR OTHER PURPOSES WHEREAS, the City Council of the City of Palm Beach Gardens, Florida adopted 15 a Budget for the 2016/2017 Fiscal Year; and WHEREAS, the City Council has determined that an amendment needs to be 18 made to the previously adopted Fiscal Year 2016/2017 Budget; and WHEREAS, the City Council deems approval of this Ordinance to be in the best 21 interest of the health, safety, and welfare of the residents and citizens of the City of Palm 22 Beach Gardens and the public at large NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 26 OF PALM BEACH GARDENS, FLORIDA that: SECTION 1. The foregoing recitals are hereby affirmed and ratified SECTION 2. The City Council hereby amends the revenues and expenditures 31 listed in the attached Exhibit "1" and adopts such amendments as to the Budget of the 32 City of Palm Beach Gardens for the Fiscal Year October 1, 2016, through September 30, , inclusive SECTION 3. All ordinances or parts of ordinances in conflict be and the same are 36 hereby repealed SECTION 4. Should any section or provision of this Ordinance or any portion 39 thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction 40 to be invalid, such decision shall not affect the validity of the remainder of this Ordinance SECTION 5. This Ordinance shall become effective immediately upon adoption Page 1 of 2

2 ~ PASSED this~ ay ojanw ~, 2017, upon first reading. 3 PASSED AND ADOPTED this jilt' day of &-8 (U.Ja.~'(, 2017, upon second 4 and final reading CITY OF PALM BEACH GARDENS Eric Jablin, Vi Cc.:..-.;:::: Robert Premuroso, 9J>;mcilmember ~4~ ML!:J' ~,na~ Carl Woods, Councilmember ~?, ~Ti;ST:. 26, I\,-- ~ - til -. ;/) 28~'- -st: - ~ FOR AGAINST.?9 _ - -p~'a...::ts. ric-ia~s-=n= id-e-r,..loc-m-c-,-c-ity_c_ie_r_k_ 3Q. -- ~ APPROVED AS TO FORM 33 LEGAL SUF ICIENCY BY :_}=:.~:._j_~-: 1~::::::::::::::=::::=:::::::: \\pbgsnas\attorney\attorney_share\ordinances\2017\0rdinance Budget Amendment.docx Page 2 of 2 ABSENT

3 CITY OF PALM BEACH GARDENS CITY COUNCIL Agenda Cover Memorandum Meeting Date: January 5, 2017 Subject/Agenda Item: An amendment to the Fiscal Year 2016/17 budget to adjust fund balance carryovers to actual amounts; re-appropriate amounts committed from the FY 2015/2016 budget for outstanding purchase orders and open projects; and for other purposes. [X] Recommendation to APPROVE [ ] Recommendation to DENY Reviewed by: Ci Originating Dept.: Finance &2 Allan Owens Finance Administrator Costs: $ (Total) Council Action: ] Approved $4, ] Approved w/ Current FY Conditions ] Denied Advertised: Funding Source: ] Continued to: Date: Paper: ( 1 Operating Attachments: [ 1 Other - Exhibit 'T [ X ] Not Required Contract/Agreement: Submitted by: Effective Date: N/A Expiration Date: N/A ~ ~ Approved by: Affected parties [ ] Notified [X] Not required Budget Acct.#:

4 Meeting Date: Ja nuary 5, 2017 Page 2 of 5 BACKGROUND: This Ordinance amends the FY 2017 Budget by adjusting beginning budgeted fund balances in concert with actual ending FY 2016 fund balances, reappropriating purchase orders and uncompleted project balances from FY 2016 to FY 2017, and recommending other certain budget adjustments. These items are discussed in more detail in the following sections. Fund Balance Adjustments Section , Florida Statutes, requires that amounts available from taxation and other sources, including amounts carried over from prior fiscal years, must equal total appropriations for expenditures and reserves. To ensure budgeted expenditures do not exceed available resources, it is customary to adjust beginning fund balances to the prior year's actual year-end amounts. This Ordinance amends the FY 2016/2017 budget by adjusting fund balance carryovers to actual amounts, as detailed in Exhibit "1". The most significant adjustment to beginning budgeted fund balance is to the General Fund, resulting in an increase to the Budget Stabilization Reserve account of $3.9 million. This adjustment is discussed in more detail in the Other Significant Budget Adjustments section of this summary. Carryforward of Projects and Purchase Orders In addition, under Generally Accepted Accounting Principles, as one fiscal year comes to a close and a new fiscal year begins, the City is required to carry forward the funds appropriated for prior year obligations that will be paid in the new fiscal year. This Ordinance amends the FY 2016/2017 budget for amounts reserved, committed, or assigned from the FY 2015/2016 budget for outstanding purchase orders and commitments as they relate to open projects that cross fiscal years, as detailed in Exhibit "1". Some of the more significant projects, by fund, that are being re-appropriated include the following: General Fund Shady Lakes Drive - Phase 2 117th Court North Improvements Stormwater Refurbishment Public Facilities/Golf Maintenance Barn Allamanda Water Control Structure Municipal Complex Enhancements Radio Monopole - Lake Catherine Radio Consortium Gas Tax Fund Bridge Refurbishment Recreation Impact Fund Golf Clubhouse Joseph R. Russo Athletic Complex $1,494,151 1,415, , , , , , ,170 $320,822 $5,049,056 1,298,087

5 Meeting Date: January 5, 2017 Page 3 of 5 Police Impact Fund Tactical Training Facility Fire Impact Fund Public Safety Training/Richard Rd Road Impact Fund Shady Lakes Drive - Phase 1 Johnson Dairy Road Improvements Campus Dr. Improvements $600,614 $402,730 $2,268, , ,000 Other Significant Budget Adjustments Preliminary unaudited financial statements indicate the General Fund Budget Stabilization Reserve Account will total $6.8 million as of September 30, 2016, which is $3.9 million greater than the amount of $2.9 million that was estimated in the current budget. This increase is attributed to the following factors: A 2.38% positive variance between actual and projected FY 2016 revenues, which equates to $1.9 million; and A 2.46% positive variance between actual and projected FY 2016 expenditures, which equates to $2 million. The Budget Stabilization Reserve Account was initially funded with the transfer of $2.4 million from the Series 2003 Debt Service Reserve Fund, which was eliminated when the Series 2003 Bonds were refinanced in The growth of this account provides the City an opportunity to accelerate investments in City infrastructure and address unanticipated needs in the FY 2017 Budget. After reviewing the FY 2017 Budget and projected capital improvement projects, staff is recommending additional funding be allocated for the following: the City's golf course facility, including a Public Facilities/Golf Maintenance Building, Golf Training Facility, Golf Course Lighting-Driving Range/Putting, and the Golf Clubhouse; Johnson Dairy Road improvements; mosquito-borne Zika spraying; and landscape maintenance. A discussion of each of these items follows: A transfer of $2,250,000 from the Budget Stabilization Reserve Account to the Public Facilities/Golf Maintenance Building Project is recommended. Staff has reviewed current and future needs to adequately service not only the existing golf course, but also the additional public parcels that will be transferred to the City from Avenir. The additional funding will allow a facility to be constructed that will adequately service not only the current golf course operation, but also house park and mechanic maintenance operations related to any future expansion of golf and/or recreational facilities in this area.

6 Meeting Date: January 5, 2017 Page 4 of 5 The City's golf facility has undergone significant improvements with the recent renovations to the course; in addition, a signature golf clubhouse is currently being constructed. To complete the long-term vision for the City's golf course operation, staff is recommending the following allocations: o A transfer of $690,405 to a Golf Training Facility Project. This facility would be adjacent to the driving range and would house state-of-the-art training equipment, creating a one-of-a-kind training operation that would attract players from throughout the county to the City's course. o In addition to the Training Facility, $200,000 is recommended to accelerate the Golf Course Lighting - Driving Range/Putting Project. The completion of this project will augment the overall training facility and will generate additio11al revenues by expanding the hours of operation. o Lastly, staff is recommending a transfer of $520,000 to the Golf Clubhouse Project. This amount is necessary to cover unanticipated utility and infrastructure site costs, as well as to provide a minimal contingency to cover any future unanticipated costs. Staff has also reviewed capital improvement projects that have been deferred due to funding constraints; one of these projects is the completion of the Johnson Dairy Road Improvement Project. Prioritization of this project is recommended due to the recent changes to Military Trail, which have made Johnson Dairy Road a primary entryway into the City Hall Municipal Complex. Funds in the amount of $331,694 are budgeted in the FY 2017 Road Impact Fund Budget to construct these improvements; however, current estimates to complete the project total $808,694. Accordingly, a transfer from the Budget Stabilization Reserve Account in the amount of $477,000 is requested to fully fund this project in FY A transfer of $250,000 from the Budget Stabilization Reserve Account is requested to cover the additional cost of the specialized chemicals required to spray the City to control the growth of the mosquito-borne Zika Virus. Lastly, staff is recommending a transfer of $125,000 from the Budget Stabilization Reserve Account to cover the unanticipated cost of replacing the landscape maintenance contractor that recently terminated its agreement with the City.

7 Meeting Date: January 5, 2017 Page 5 of 5 Summary of Impacts on General Fund Budget Stabilization Reserve Fund To summarize, the other significant budget adjustments contained in that impact the Budget Stabilization Reserve Account, include the following: 1. Public Facilities/Golf Maintenance Building 2. Golf Training Facility 3. Golf Course Lighting - Driving Range/Putting 4. Golf Clubhouse 5. Johnson Dairy Road Improvements 6. Mosquito-borne Zika Virus spray chemicals 7. Landscape maintenance contract Total Transfers from Budget Stabilization Reserve Account $2,250, , , , , , ,000 $4,512,405 After the above transfers are made, the Budget Stabilization Reserve Account will total $2,353,851 in FY 2017, which is a net decrease of $578,022 from the originally adopted budget. This will return the balance in the Budget Stabilization Reserve Account to the approximate balance as when the account was established in Unassigned General Fund Reserves are unaffected and will remain at $23,066,106. STAFF RECOMMENDATION: Staff recommends approval of as presented on first reading.