LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SUPPLEMENTAL BUDGET RESOLUTION NO. 2020-59 - FY 2021 NON-ENCUMBERED CARRYOVER BUDGET RESOLUTION
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 2020-59.
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2021; 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 12, 2020. The attached unencumbered carryover budget resolution includes appropriations for the following:
• Items budgeted in FY 2020 but not purchased or encumbered
For various reasons, certain items that were budgeted in FY 2020 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 $6,654 are being carried forward to FY 2021.
Additionally, balances remaining for the MBE Program, Pensacola Neighborhood Challenge Grants, Human Relations Commission, 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, 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, and Innovation & Technology Department.
At the November 12, 2020, City Council Meeting, City Council approved Supplemental Budget Resolution No. 2020-53. This was the final amendment to the Fiscal Year 2020 Budget. Included in that resolution was an appropriation of $60,107 for employee morale recognition activities. Of that amount, $10,000 has been appropriated and has been divided between the various departments, based on the number of positions within each department.
• Items to be purchased with additional unexpended FY 2020 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 2020 appropriations are available to fund these requests.
A total of $5,400 is being carried forward to provide funding for cell phones and tablets for the four new councilmembers. Additionally, a total of $55,000 has been carried forward to provide funding for training of the new councilmembers as well as funding for costs associated with various town hall meetings, mailers, and other notifications on behalf of City Councilmembers. An appropriation of $75,000 has been included in the City Council’s Repairs & Maintenance line item and $10,000 in Non-Capitalized Assets to provide funding to address various changes/adjustments needed within Council Chambers as well as any unforeseen upgrades or necessary items for the conducting of meetings within City Hall. Under the City Charter, Section 6.08, a districting commission shall prepare a plan for dividing the City into districts for the election of Council members following each decennial census. An appropriation of $50,000 is included within the City Council Budget to provide funding for technical assistance related to accomplishing the redistricting.
At the Final Public Hearing on the Fiscal Year 2021 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 Energy Conservation & Efficiency Improvements to a new project entitled Street Lighting with an appropriation of $200,920 and is to be used for street lighting within each City Council District. At the October 12, 2020, City Council Meeting, Supplemental Budget Resolution No. 2020-51 was adopted and within that resolution was an appropriation of $200,920 for Street Lighting. Additionally, at the October 19, 2020 City Council Workshop, there was a discussion regarding the Street Lighting Plan. Mayor Robinson informed City Council that funding was included in the Fiscal Year 2021 Budget for Street Lighting. However, upon evaluating the different needs for street lighting, it was determined that not all would qualify for LOST funding. Therefore, a total amount of $105,000 has been appropriated within the City Council’s Budget to provide $15,000 for each City Councilmember’s district for those items that do not qualify for LOST funding.
An additional $10,000 has been appropriated within the Human Resources Department to provide funding for much-needed replacement of furniture within the Training and Conference Rooms.
At the July 14, 2020, City Council Meeting, City Council authorized the Lee Square Confederate Monument's removal. The monument was removed during the October-November 2020 timeframe. The total costs associated with the removal are estimated to be slightly under $150,000. The Supplemental Budget Resolution includes appropriations for the costs associated with the removal of the monument.
An additional $200,000 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.
The dance floor at the Gull Point Community Center and the Sanders Beach-Corinne Jones Community Center's security panel need replacements/upgrades. A total amount of $5,000 has been appropriated to address these two areas.
As part of the reallocation of LOST IV funds, City Council authorized funding in the amount of $250,000 to purchase a new Street Sweeper. However, there was not sufficient funding to purchase a second Street Sweeper. Therefore $87,000 has been appropriated in the Stormwater Utility Fee Fund to provide for the refurbishment of the second Street Sweeper.
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. An additional $25,000 has been appropriated for the UWF Historic Trust in order to provide funding for the celebration of 200th Anniversary for both Florida and Escambia County which will occur during 2021.
At the end of Fiscal Year 2020, the Tree Planting Trust Fund had an unencumbered balance of $528,007. This balance has been appropriated to allow for implementation once a plan for these funds has been determined.
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.
• 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. Therefore, $1,800,000 of available Fund Balance within the General Fund is being assigned to ensure the City has sufficient funds for the required General Fund 12.5% match. Should additional funding become necessary, a supplemental budget resolution will be brought before the City Council for consideration.
• Changes in Revenue Estimates
The oversight of the collection of Boat Launch Fees has been shifted from the Parks and Recreation Department in the General Fund to the Parking Management Fund. Therefore, Boat Launch Fee revenue in the amount of $18,000 has been shifted from the General Fund to the Parking Management Fund.
Within the Community Development Block Grant Fund, additional funding is anticipated from the Federal Government and has been appropriated to provide additional funding.
Within the Stormwater Utility Fee Fund, revenue from the State Right of Way Maintenance has decreased. The City of Pensacola maintains various State Roads as part of an agreement with the State of Florida. One of the maintenance areas is the General Daniel “Chappie” James Bridge (Three Mile Bridge). With the bridge's ongoing construction, coupled with the damage caused by Hurricane Sally, the bridge is no longer being maintained by the City, thus reducing revenue from the State by $10,200.
Based on Fiscal Year 2020 revenues in the Inspection Services Fund, an additional $32,700 has been appropriated for Building Permits in anticipation of increased activity due to Hurricane Sally recovery efforts. Offsetting this increase is an appropriation of $6,400 to purchase laptops to provide for teleworking during the COVID-19 crisis.
On October 11, 2018, City Council authorized the Mayor to execute an eighteen-month option agreement with Studer Properties, LLP, for the seven vacant Community Maritime Park parcels. In consideration, the City received an option payment of $271,659, representing 20% of the post-development base rent. Additionally, on March 26, 2020, City Council authorized the Mayor to execute an addendum to the Agreement extending the Option Term by twelve months to March 31, 202. In consideration for the addendum, the City will receive a $90,553.20 Addendum Option Payment, payable in installments of $7,546.10 per month. On April 20, 2020, Studer Properties issued a Request for Proposals to provide interested developers with an opportunity to submit a development proposal. An independent selection committee reviewed the proposals, and of the six proposals received, three were recommended. At the October 8, 2020 City Council Meeting, City Council authorized the Mayor to execute assignments of the Option Agreement with the three entities. Upon assignment, all option payments made by Studer Properties and any future option payments made by the three entities will be considered earned by the City and deposited into the City’s Community Maritime Park Management Service Fund for use in developing the Community Maritime Park. Therefore, a total of $362,213 has been appropriated to provide funding for professional services associated with the Community Maritime Park development.
Based on Fiscal year 2020 revenues in the Sanitation Fund, revenues from Residential Refuse Containers have been increased by $38,000 and is offset with a reduction in the same amount for Business Refuse Containers.
An effort has been made to aggressively close existing claims within the Risk Management activity of Financial Services. This has increased costs associated with that effort. The supplemental budget resolution includes an additional $1,000,000 to address this increased effort.
The appropriation for the Special Assessments Fund is being made to provide funding for the demolition of various structures.
• Other Changes
At the October 8, 2020 City Council Meeting, Supplemental Budget Resolution No. 2020-48 was adopted, creating funding for the Parking Management Fund. Included in that resolution was an appropriation for Allocated Overhead for costs associated with providing general services to the Parking Management operations. However, an offsetting change was not made within the General Fund at that time. This supplemental budget resolution includes the offsetting $40,000 in Allocated Overhead/(Cost Recovery) within the Office of the Mayor as the direct oversight of Parking Management is within the City Administrator’s Office. In future years, the Parking Management Allocated Overhead will be included in the Cost Allocation Study and will be allocated according to that study.
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 2021 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 2021 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, 2020. 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.
PRIOR ACTION:
September 23, 2020 - City Council formally adopted a beginning FY 2021 Budget on Budget Resolution No. 2020-
November 12, 2020 - City Council adopted Supplemental Budget Resolution No. 2020- 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 2021.
CITY ATTORNEY REVIEW: Yes
11/30/2020
STAFF CONTACT:
Keith Wilkins, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2020-59
2) Supplemental Budget Explanation No. 2020-59
PRESENTATION: No end