HomeMy WebLinkAboutO-2005-2836-F
E
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: December 11, 2006
Requested By: Michael Dolby y-
Department: Finance
Appropriation
Source of Funds: N/A
Account Number: N/A
Report:
Resolution:
Ordinance:
x
Amount Budgeted: N/A
Exhibits: Ordinance 2005-2836-F
Amount Requested: N/A
Exhibits: Excerpt from FY 2006 Adopted Budget &
Amended Budl!et (Exhibit A & B)
Budgeted Item: YES
NO
Exhibits: Rxplanlltions
SUMMARY & RECOMMENDATION
The City Council adopted the Fiscal Year 2005-06 Budget on August 22,2005.
The Summary of Funds, which is shown below, represents the amendments which council previously approved to
the FY 2005-06 Budget. (*denotes funds with current changes)
Revised 2006
(Amended wi Proposed
Original Budget FY 2007Budget) Amended Budget
General Fund $ 25,987,077 $ 27,280,748 $ 27,312,748 *
Grant Fund 2,793,931 1,279,794 1,279,794
Hotel/Motel Occupancy Tax 334,280 745,228 745,228
Community Investment 190,000 140,728 140,728
La Porte Development Corporation 740,060 740,060 740,060
Tax Increment Reinvestment Zone 36,000 36,000 36,000
Utility 6,774,071 6,566,704 6,566,704
Sylvan Beach 208,683 248,516 248,516
Airport 241,443 10,043 10,043
La Porte Area Water Authority 1,693,956 1,032,067 1,032,067
Golf Course 1,240,740 1,158,149 1,158,149
Motor Pool 1,661,304 2,397,651 2,397,651
Insurance Fund 4,017,103 4,460,139 4,460,139
Technology Fund 956,611 955,839 955,839
General Capital Improvement 433,500 1,509,497 1,509,497
Utility Capital Improvement 715,000 3,551,579 3,551,579
Sewer Rehabilitation Capital Improvement 330,000 262,643 262,643
Infrastructure Fund 705,000 1,204,600 1,204,600
1998 General Obligation Bond Fund 1,207,639 1,566,623 1,566,623
2000 General Obligation Bond Fund 1,160,000 1,638,036 1,638,036
2002 General Obligation Bond Fund 732,789 320,457 320,457
2004 Certificate of Obligation Bond Fund 10,000 1,008,299 1,008,299
2005 Certificate of Obligation Bond Fund 1,800,000 10,191,600 10,191,600
2005 General Obligation Bond Fund 7,700,000 5,700,000 5,700,000
2006 Certificate of Obligation Bond Fund 1,200,000 1,200,000
2006 General Obligation Bond Fund 449,650 449,650
General Debt Service 2,190,671 2,421,752 2,421,752
Utility Debt Service 381,712 292,712 292,712
La Porte Area Water Authority Debt Service 771,719 771,719 771,719
Total of All Funds $ 65,013,289 $ 79,140,833 $ 79,172,833
Action Required bv Council:
Adopt Ordinance Amending Fiscal Year 2005-06 Budget for $32,000 in the General Fund. The actual expenditures
for the 2006 fiscal year total 27,312,593, which is in excess of the revised budget by $31,845. Therefore, per the
City's Charter and financial policies, the budget must be amended to cover the excess expenditures.
(f7
Date
ORDINANCE NO. 2005-2836-F
AN ORDINANCE APPROVING AN AMENDMENT TO THE BUDGET FOR THE CITY OF LA PORTE,
TEXAS, FOR THE PERIOD OF OCTOBER 1,2005 THROUGH SEPTEMBER 30,2006; FINDING THAT
ALL THINGS REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARATION AND
PRESENTMENT OF SAID BUDGET; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND
PROVIDING AN EFFECTIVE DATE HEREOF.
WHEREAS, the Charter of the City of La Porte, Texas, and the Statutes of the State of Texas, require that
an annual budget be prepared and presented to the City Council of the City of La Porte, Texas, prior to the
beginning of the fiscal year of said City, and that a public hearing be held prior to the adoption of said
Budget; and
WHEREAS, the Budget for the fiscal year October 1, 2005, through September 30, 2006, has heretofore
been presented to the City Council and due deliberation had thereon, was filed in the office of the City
Secretary on July 25, 2005, and a public hearing scheduled for August 22, 2005 was duly advertised and
held.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
SECTION 1: That the Budget for the City of La Porte, Texas, now before the said City Council for
consideration, a complete copy of which is on file with the City Secretary and a summary of which is
attached hereto by reference as Exhibit "A", is hereby amended as reflected on the amended budget
summary document, attached hereto by reference as Exhibit "B" as the Budget for the said City of La Porte,
Texas, for the period of October 1,2005, through September 30,2006.
SECTION 2: Be it FURTHER ORDAINED, that the said City Council finds that all things requisite and
necessary to the adoption of said Budget have been performed as required by charter or statute.
SECTION 3: The City Council officially finds, determines, recites and declares that a sufficient written
notice of the date, hour, place and subject of this meeting of the City Council was posted at a place
convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as
required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has
been open to the public as required by law at all times during which this Ordinance and the subject matter
thereof has been discussed, considered and formally acted upon. The City Council further ratifies,
approves and confirms such written notice and the contents and posting thereof.
SECTION 4: This Ordinance shall be in effect from and after its passage and approval.
PASSED AND APPROVED this the ~day Of~. 200'
A-TY. OF LA PORTE. TEXAS
\JJ~~X~
Alton Porter, Mayor
ATTEST:
t!/,,~ ~JI;L
Mart a Gillett, City Secretary
APPROVED:
~-r~
Clark Askins, Assistant City Attorney
EXHIBIT A
(ORIGINAL BUDGET)
City of La Porte
Consolidated Summary of All Funds
Working Working
Capita] FY 05-06 FY 05-06 Capita]
09/30/05 Revenues Expenses 09/30106
Governmenta] Fund Types:
Genera] Fund 7,102,252 25,987,077 25,987,077 7,102,252
Grant Fund ],766 2,793,931 2,793,931 ],766
Hote]/Mote] Occupancy Tax 569,749 250,590 334,280 486,059
Community Investment 76,706 135,377 ] 90,000 22,083
Section 4B Sales Tax 3,570,274 ],] 82,890 740,060 4,0]3,]04
Tax Increment Reinvestment ]51,844 43,850 36,000 ]59,694
Tota] Governmenta] Types ] ],472,59] 30,393,7]5 30,08] ,348 ] ],784,958
Enterprise:
Utility 773,358 6,432,721 6,774,07] 432,008
Sylvan Beach ]47,90] 2]0,510 208,683 ]49,728
Airport 299,461 4] ,408 24] ,443 99,426
La Porte Area Water Authority 1,546,358 1,172,713 ] ,693,956 1,025,] ]5
Go]f Course (60,201) ] ,255,635 1,240,740 (45,306)
Tota] Enterprise 2,706,877 9,1] 2,987 ] 0,] 58,893 ],660,97]
Interna] Service
Motor Pool ],769,53] ],85],330 ],66],304 ] ,959,557
Insurance Fund ] ,210,784 3,987,477 4,0]7,103 ],]8],]58
Techno]ogy Fund 66] ,979 986,] 72 956,61 ] 691,540
Tota] Interna] Service 3,642,294 6,824,979 6,635,0] 8 3,832,255
Capita] Improvement:
General 410,84] 28,000 433,500 5,34]
Utility ],]82,] ]5 432,062 715,000 899,]77
Sewer Rehabilitation 24,900 305,] 00 330,000
] 998 GO Bond Fund ],]87,639 20,000 ],207,639
2000 GO Bond Fund 1,252,143 5,000 ],160,000 97,]43
2002 GO Bond Fund 786,637 20,000 732,789 73,848
2004 C/O Bond Fund ],]05,0]2 40,800 10,000 ],]35,8]2
2005 C/O Bond Fund 1,800,000 1,800,000
2005 GO Bond Fund 7,700,000 7,700,000
Other Infrastructure ],068,624 ]7,000 705,000 380,624
Tota] Capita] Improvement 7,017,9] ] ] 0,367,962 ]4,793,928 2,59],945
Debt Service:
Genera] ] ,304,595 2,339,549 2,] 90,671 ],453,473
Utility 38],712 402,562 381,712 402,562
La Porte Area Water Authority 77],7]9 77],719
Total Debt Service ] ,686,307 3,513,830 3,344,102 ] ,856,035
Total All Funds 26,525,980 60,213,473 65,0]3,289 21,726,]64
EXIDBIT B
(AMENDED BUDGET)
City of La Porte
Consolidated Summary of All Funds
Working Working
Capital FY 05-06 FY 05-06 Capital
09/30/05 Revenues Expenses 09/30/06
Governmental Fund Types:
General Fund 8,562,449 28,352,498 27,312,748 9,602,199
Grant Fund 374,900 1,279,794 1,279,794 374,900
Hotel/Motel Occupancy Tax 778,876 287,284 745,228 320,932
Community Investment 81,538 693,265 140,728 634,075
Section 4B Sales Tax 3,226,505 1,301,611 740,060 3,788,056
Tax Increment Reinvestment 150,609 44,183 36,000 158,792
Total Governmental Types 13,174,877 31,958,635 30,254,558 14,878,954
Enterprise:
Utility (174,409) 6,783,289 6,566,704 42,176
Sylvan Beach 184,759 192,795 248,516 129,038
Airport 304,556 43,362 10,043 337,875
La Porte Area Water Authority 1,520,829 1,198,959 1,032,067 1,687,721
Golf Course (178,061) 1,278,363 1,158,149 (57,847)
Total Enterprise 1,657,674 9,112,987 9,015,479 2,138,963
Internal Service
Motor Pool 2,532,975 1,881,187 2,397,651 2,016,511
Insurance Fund 819,795 4,488,268 4,460,139 847,924
Technology Fund 829,876 995,739 955,839 869,776
Total Internal Service 4,182,646 7,365,194 7,813,629 3,734,211
Capital Improvement:
General 570,369 1,229,520 1,509,497 290,392
Utility 2,223,001 3,050,730 3,551,579 1,722,152
Sewer Rehabilitation 231,024 313,019 262,643 281,400
1998 GO Bond Fund 1,179,600 25,000 1,204,600
2000 GO Bond Fund 1,211,230 530,000 1,566,623 174,607
2002 GO Bond Fund 1,364,500 249,915 1,638,036 (23,621 )
2004 C/O Bond Fund 1,564,838 23,700 320,457 1,268,081
2005 C/O Bond Fund 1,760,752 50,000 1,008,299 802,453
2005 GO Bond Fund 7,649,547 3,000,000 10,191,600 457,947
2006 C/O Bond Fund 5,861,903 5,700,000 161,903
2006 G/O Bond Fund 1,204,000 1,200,000 4,000
Other Infrastructure 1,071,281 36,188 449,650 657,819
Total Capital Improvement 18,826,142 15,573,975 28,602,984 5,797,133
Debt Service:
General 1,704,632 2,419,439 2,421,752 1,702,319
Utility 951,560 452,692 292,712 1,111,540
La Porte Area Water Authority 771,719 771,719
Total Debt Service 2,656,192 3,643,850 3,486,183 2,813,859
Total All Funds 40,497,531 67,654,641 79,172,833 29,363,120
City of La Porte
Interoffice Memorandum
TO:
Mayor and Council (\
Debra Feazelle, Municipal Advisor/Consultant OJ
December 28, 2006
FROM:
DATE:
SUBJECT:
Fiscal Year 2006 Year-End Budget Amendment/Adjustments
During the FY 2007 Budget process, the Departments revised their original budgets based on six
months of actual data and estimated needs for the remainder of the year. The revised budget based
on Director's projections totaled $27,280,748. Now that the Fiscal Year has ended, actual
expenditures for the 2006 fiscal year total $27,312,593, which is in excess of the revised budget by
$31,845.
The excess expenditures occurred due to several reasons. First, many of the overages occurred due
to the lack of data at the time the estimates were prepared. Departments only had six months of
data in which to base their estimates when the process began in May. For instance, one of the
overages of $50,000 occurred in the termination pay line item in the non-departmental division. A
total of $72,197 was paid out in periods 11 and 12, long after estimates were prepared. This large
increase in termination pay could not have been foreseen. Another area where overages occurred
was in the personal service line items. Payroll estimates are based on 26 pay periods; however, the
fiscal year end fell in the middle of a pay period causing 12 of the payroll to be accrued in FY 2006.
This equated to overages across the divisions of $69,400. Finally, many departments were overly
optimistic in their estimates and did not anticipate needed purchases at year end, which caused
them to go over their revised budgets.
In light of this information, I had directed the budget staff to request a budget amendment for the
FY 2006 General Fund budget in the amount of $32,000 to cover the excess expenditures. The
requested amendment needs to be brought to the next City Council meeting before the audit is
completed.
Additionally, pursuant to the City Charter and Financial Policies of the City, the City Manager has
the authority to approve budget adjustments within individual funds. I am directing the budget
staff to reallocate expenditure budgets within the general fund to cover overages within divisions
and departments.
DF:SG
xc:
John Joems, Interim City Manager