LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SUPPLEMENTAL BUDGET RESOLUTION NO. 2021-106 - FY 2022 NON-ENCUMBERED CARRYOVER BUDGET RESOLUTION
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 2021-106.
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2022; PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
Purchase orders carried forward on a separate budget resolution were approved by City Council on November 18, 2021. The attached unencumbered carryover budget resolution includes appropriations for the following:
• Items budgeted in FY 2021 but not purchased or encumbered
For various reasons, certain items that were budgeted in FY 2021 were not purchased or encumbered. The unexpended appropriations are carried forward to the new fiscal year so that these items can be purchased.
City Council Discretionary Funds in the amount of $31,952 are being carried forward to FY 2022. Additionally, at the public hearings to adopt the Fiscal Year 2022 Budget, City Council directed Staff to take those remaining funds designated for each Councilmember’s Transportation and Training budgets to be carried forward to their Fiscal Year 2022 Council Discretionary Funds. That will provide an additional $55,891 for a total carryforward amount of $87,843.
A total of $76,462 designated for Traffic Signals & Street Lights for each Council District is being carried forward to FY 2022. Additionally, funding in the amount of $100,000 is being carried forward for the Marketplace Greenway as well as $165,871 of remaining funds for the Transit Master Plan. Funding for the costs associated with restricting in the amount of $50,000 is also being carried forward.
Balances remaining for the MBE Program, Pensacola Neighborhood Challenge Grants, HOPE Foundation, Saenger Theatre Capital Projects, Tree Planting Trust Fund, Homeless Initiatives, Public Works, Special Grants Fund, Community Redevelopment Agency Fund, Section 8 Housing Assistance Fund, Law Enforcement Trust Fund, Natural Disaster Fund, Eastside TIF Fund, Westside TIF Fund, American Rescue Plan Fund, Local Option Sales Tax Fund, CRA Series 2017 Capital Projects Fund, CRA Series 2019 Capital Projects Fund, Stormwater Capital Projects Fund, Gas Utility Fund, Port Fund, Airport Fund, Insurance Retention Fund and Innovation & Technology Department.
• Items to be purchased with additional unexpended FY 2021 appropriations
In some instances, departments have requested that unexpended appropriations be used to fund items that were not anticipated when the FY 2021 Budget was prepared. Sufficient unexpended FY 2021 appropriations are available to fund these requests.
A total of $50,000 is being carried forward in the City Council’s budget to provide funding for costs associated with the Charter Review Commission. Within the Office of the Mayor $7,500 is being carried forward for costs associated with the Youth Council and $5,000 is being carried forward from the Mayor’s Discretionary for a contribution towards the New Year’s Eve Celebration.
At the Public Hearing on the Fiscal Year 2022 Budget, City Council expressed a desire to reallocate funding within the Local Option Sales Tax (LOST) Series IV Plan. Included in the reallocation was a shift from Bayview Senior Center, Legion Field, Sanders Beach-Corinne Jones Resource Center and the Theophalis May Center to two new projects, the Women’s Veteran Memorial and the Chappie James Memorial for a combined appropriation of $290,000. Additionally, $250,000 was shifted to Woodland Heights Resource Center and the remaining $444,726 was shifted to General Park Improvements to be used for various maintenance issues within existing parks. At the October 14, 2021, City Council Meeting, Supplemental Budget Resolution No. 2021-85 was adopted and contained the shifting of funds previously mentioned.
An additional $35,700 has been appropriated within Planning Services to provide funding for half of the cost of an Urban Design Specialist. This position will be split between Planning and the CRA. Funding for this position will be offset with an increase in revenue for Zoning Review & Inspection Fees which historically have been a function of Inspection Services but was shifted to Planning Services.
Within Parks & Recreation, $30,000 has been appropriated for the Julian Olson Monument at Bayview Park ($5,000); the John Sunday Monument at City Hall ($15,000) and funding for a bench at the Garden of Peace and Hope for a local activism group, Parents Against Injustice and Negligence ($10,000). The garden will be housed within the Corrine Jones Stormwater Park and is intended as a place where families of homicide victims can go to mourn their lost loved ones.
An additional $100,000 has been appropriated in the General Fund for additional funding for State Reimbursed projects conducted by Public Works and will be offset with an increase in estimated revenue.
Within the Fire Department’s Budget, an additional $20,000 has been added for education tuition reimbursement. This portion was in the Collective Bargaining Agreement but was not included in the Fiscal Year 2022 Budget. It will be included in the Fiscal Year 2023 Budget. Additionally, $26,000 has been appropriated for professional architectural and engineering services to provide FEMA Hazard Mitigation Plans for Fire Stations 1, 2, 3, 4 and 6. The purpose of this study is to identify risks from natural disasters and develop a mitigation plan to reduce loss of property by lessening the impacts from future disasters.
An additional $40,000 has been appropriated within the Police Department to provide a comprehensive mental and physical well being program for Public Safety Employees within both the Police and Fire Departments.
Within the Non-Departmental budget in the General Fund, an additional $12,500 has been appropriated for the Gulf Coast Minority Chamber of Commerce to provide additional funding for the organization.
Within the Community Maritime Park Services Fund, $55,000 is being appropriated for electric charging stations that will be installed in the City Hall parking lot. Those funds will come from the Parking Lot portion of fund balance.
At the second public hearing on the Fiscal Year 2021 Budget, City Council approved the reprioritization of Local Option Sales Tax Fund projects. There was a reduction in future year projects. This resolution will reduce those Fiscal Year 2021 projects that were reprioritized.
COVID-19 has brought about various shortages in commodities and most importantly has impacted the ability to purchase police vehicles. Therefore, in order to be able to purchase vehicles, LOST IV funding for both Marked and Unmarked Police Vehicles originally slated for Fiscal Year 2029 have been moved forward to Fiscal Year 2022 to allow more vehicles to be purchased when available.
Additionally within the Local Option Sales Tax Fund, $30,000 has been shifted from Traffic Calming to Pavement Management Program as it has become evident that projects within Traffic Calming are not LOST eligible.
An estimated $50,000 has been appropriated within the Insurance Retention Fund for anticipated costs associated with the litigation for the restroom trailer at Admiral Mason Park. Within the City Clinic, an additional Assistant City Nurse was added within the Fiscal Year 2022 Budget with the anticipation that CARES funds would provide the necessary funding. However, since that time it was discovered that the costs would not be eligible. Therefore an additional $87,000 has been added to the Fiscal Year 2022 Budget to fund the salary, benefits and operating costs associated with the additional position.
• Appropriation of Fund Balance
Fund Balance is appropriated as necessary to cover the planned expenditures noted above.
FEMA will provide 75% of the costs associated with the repairs and cleanup of the damages incurred from Hurricane Sally. The remaining 25% will be split between the State of Florida and the City of Pensacola. At the end of Fiscal Year 2020, $1,800,000 of available Fund Balance within the General Fund was assigned to ensure the City has sufficient funds for the required General Fund 12.5% match. At that time, it was mentioned that should additional funding become necessary, a supplemental budget resolution would be brought before the City Council for consideration. Upon obligation of several Project Worksheets within FEMA it has become apparent that additional funding will be necessary. Therefore, an additional $750,000 has been assigned to provide additional funding for the City’s required General Fund 12.5% match.
• Changes in Revenue Estimates
Within the Community Development Block Grant Fund, additional funding is anticipated from the Federal Government and has been appropriated to provide additional funding.
At the close of Fiscal Year 2020, the revenue from the Local Option Sales Tax was below the estimated revenue by $698,991 due to the COVID-19 Pandemic. Because the Local Option Sales Tax Plan is an eleven year plan, it was anticipated that, over the life of the LOST IV Series, the revenues should be at the original estimated amount. Therefore, revenues for future years were adjusted upwards in order to avoid the need to reduce or eliminate projects included in the plan. As reported in November, Supplemental Budget Resolution No. 2021-92 recognized an additional $1.2 million in LOST revenue. This revenue was placed into Fund Balance to offset the significant reduction experienced in Fiscal Year 2020. The previous revenue adjustments made have been restored to pre-COVID numbers and the remaining $804,532 has been placed in Capital Equipment Reserves. A review will be made of the various requests made in the Fiscal Year 2022 budget but were not approved due to the anticipated decrease in revenue and a recommendation will be brought back before City Council to address those unfunded needs such as Police Vehicles, Fire Apparatus and equipment requested by other General Fund departments.
On August 12, 2021 City Council approved Pensacola Energy to enter into a prepay agreement with Black Belt Energy Gas District to supply natural gas to International Paper beginning April 1 2022. This was a change that occurred after the Fiscal Year 2022 Budget was adopted. Therefore additional revenue of $280,591 has been appropriated and is offset with an increase in operating for the purchase of gas.
The City’s health insurance broker negotiated funding for a wellness program for the City as part of the group insurance plan with Florida Blue. The City received $50,000 from Florida Blue and the funding will be used to initiate a wellness program for the City to provide incentives for health and wellness. The City will request that the health insurance broker continue to negotiate wellness funding from Florida Blue in future years in order to promote a healthy workforce.
The appropriation for the Special Assessments Fund is being made to provide funding for the demolition of various structures.
• Other Changes
As outlined in the Financial Planning and Administration Policy, those amounts appropriated in budget line items for salary increases must remain as adopted unless changed by a supplemental budget resolution. The Fiscal Year 2022 Budget included a separate line item appropriation entitled “9196 - Salary Increases (Non-Union)” which was an average 2% performance-based salary increase for non-union employees. The Fiscal Year 2022 Budgeted included an additional line item appropriation entitled “9195 - Salary Increases (Union)” which also represented an average 2% performance-based salary increase for all employees represented by collective bargaining agreements. Pay increases for all non-union and union employees were effective October 1, 2021. Included in this supplemental budget resolution is a transfer from 9196 - Salary Increases (Non-Union) and 9195 - Salary Increases (Union) to 9111 - Salaries where the expenses were charged.
The annual cost allocation study was not received in time to be included in the Fiscal Year 2022 Budget. Allocated Overhead within the various funds have been adjusted based on the most recent cost allocation study.
PRIOR ACTION:
September 15, 2021 - City Council formally adopted a beginning FY 2022 Budget on Budget Resolution No. 2021-71.
November 18, 2021 - City Council adopted Supplemental Budget Resolution No. 2021-89 covering purchase orders payable.
FUNDING:
N/A
FINANCIAL IMPACT:
All appropriations of City funds in the supplemental budget resolution are covered by fund balances, shifts in expenses, or estimated revenue changes. Approval of the supplemental budget resolution provides for a balanced budget for Fiscal Year 2022.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
12/7/2021
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator - Administration and Enterprise
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2021-106
2) Supplemental Budget Explanation No. 2021-106
PRESENTATION: No end