cz-=-=~~ ay of \,, I() (\~, 2018, upon first reading. PASSED this ~ PASSED AND ADOPTED this fk day of fe6m d#f, 2018, upon second and final reading.

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1 1 2 ORDINANCE 1, 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, 2017, AND ENDING SEPTEMBER 30, 2018, 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 2017/2018 Fiscal Year; and WHEREAS, the City Council has determined that an amendment needs to be 18 made to the previously adopted Fiscal Year 2017/2018 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, 2017, 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 All ordinances or parts of ordinances in conflict be and the same are 36 hereby repealed SECTION 4.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 of \,, I() (\~, 2018, upon first reading. PASSED AND ADOPTED this fk day of fe6m d#f, 2018, upon second and final reading. 25 ATIEST: 26 Carl Woods, Councilmember cz-=-=~~ Matthew Jay Lane, Councilmember Rachelle A Litt, Councilmember ;~ ~~Y: ~ Xd 29,, _P_a...,,.'t'-ric-ia=---s"""n... id-e-r,-c-m_c_,_c_i_ty_c_l_e_rk- APPROVED AS TO FORM AN LEGAL SUFFIC NCY G:\attomey_share\OROINANCES\2018\0rdinance Budget Amendment.docx Page 2 of 2 FOR AGAINST ABSENT /

3 CITY OF PALM BEACH GARDENS CITY COUNCIL Agenda Cover Memorandum Meeting Date: January 4, 2018 Subject/Agenda Item: An amendment to the Fiscal Year 2017/18 budget to adjust fund balance carryovers to actual amounts; re-appropriate amounts committed from the FY 2016/2017 budget for outstanding purchase orders and open projects; and for other purposes. [X] Recommendation to APPROVE [ ] Recommendation to DENY Reviewed by: Originating Dept.: Finance Costs: $ 1,849,000 (Total) Council Action: ] Approved Allan Owens Finance Administrator $1,849,000 Current FY ] Approved w/ Conditions ] Denied Finance Administrator Advertised: Date: Funding Source: [ ] Operating ] Continued to: Attachments: Allan Owens Paper: [ ] Other - Exhibit "1n [ X J Not Required Contract/Agreement: om:: Submitted by: Effective Date: N/A Expiration Date: N/A Allan Owens Affected parties Budget Acct.#: N/A Approved by: [ ] Notified [X] Not required

4 Meeting Date: January 4, 2018 Page 2 of 4 BACKGROUND: This Ordinance amends the FY 2018 Budget by adjusting beginning budgeted fund balances in concert with actual ending FY 2017 fund balances, reappropriating purchases orders and uncompleted project balances from FY 2017 to FY 2018, 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 a required governmental budgeting procedure to adjust beginning fund balances to the prior year's actual year-end amounts. This Ordinance amends the FY 2017/2018 budget by adjusting fund balance carryovers to actual amounts, as detailed in Exhibit "1 ". Carry-Forward 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 2017/2018 budget for amounts reserved, committed, or assigned from the FY 2016/2017 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 Golf Course Maintenance Building Hurricane Irma Golf Course Parking Improvements Shady Lakes Drive - Phase 2 117th Court North Expansion - Phase 3 Golf Training Facility Clubhouse FFE/AV/Security Clubhouse and Entry Landscaping Recreation Impact Fund Golf Clubhouse Tennis Center Clubhouse Phase 1 $1,821,930 1,450,848 1,124, , , , , ,000 2,308, ,722

5 Meeting Date: January 4, 2018 Page 3 of 4 Public Safety Training/Richard Road Road Impact Fund Johnson Dairy Road Improvements Signal Improvements - Golf Course Shady Lakes/11?th Connector Road One-Cent Sales Surtax Fund New Soccer Complex - District Park City Hall Expansion Operations Center Baseball Complex Expansion Police Department - Expansion Fire Station 1 Expansion 735, , , ,817 $11,130,904 6,927,835 6,643,140 2,500,000 2,075,517 72,580 Other Significant Budget Adjustments Preliminary unaudited financial statements indicate the General Fund Budget Stabilization Reserve Account will total $3.7 million as of September 30, 2017, which is $1.2 million greater than the amount of $2.5 million that was estimated in the current budget. The Budget Stabilization Reserve Account was initially funded with the transfer of $2.4 million from the Series 2003 Debt Service Reserve Fund that 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 2018 Budget. After reviewing the FY 2018 Budget and projected capital improvement projects, staff is recommending additional funding be allocated for the following: Tennis Center Clubhouse; City Hall and Police Department generators; and the Golf Clubhouse generator. A discussion of these items is as follows: This budget amendment carries forward a total of $3,500,000 for the Tennis Center Clubhouse project, and records the anticipated sale of the existing Public Works building in the amount of $2,200,000. A transfer of $1,300,000 from the Budget Stabilization Reserve Account to the Tennis Center Clubhouse Project is recommended to fund the difference. The second significant request for funding is related to purchases of generators. As a result of the recent hurricane, prices of generators have increased significantly. This has created the need to supplement funding for the acquisition of generators that have been budgeted this year. In addition, our experience from the hurricane highlighted the need for an additional generator for the Police Station to provide enhanced backup capabilities for Public Safety; accordingly, the following transfers are requested :

6 Meeting Date: January 4, 2018 Page 4 of 4 o An allocation of $425,000 from the Budget Stabilization Reserve Account is requested for the following: Purchase a generator for the Police Department, which is currently provided backup power from the City Hall Generator, and will provide additional backup capability for the Emergency Operations Center in the event of a storm. Replace the generator at City Hall, which was damaged during Hurricane Irma, and needs to be upgraded to accommodate the expansion of City Hall that will begin next year. This generator will also continue to be a backup to the Emergency Operations Center, providing an additional level of security. o An allocation of $124,000 is requested to fully fund the purchase and installation of the generator at the new Golf Clubhouse. 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. Tennis Center Clubhouse 2. Police Department and City Hall Generators 3. Golf Clubhouse Generator Total Transfers from Budget Stabilization Reserve Account $1,300, , ,000 $1,849,000 After the above transfers are made, the Budget Stabilization Reserve Account will total $1,801, 124 in FY 2018, which is a net decrease of $718,658 from the originally adopted budget. Unassigned General Fund Reserves are unaffected and will remain at $23,066,106. STAFF RECOMMENDATION: Staff recommends approval of as presented on first reading.