LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SUPPLEMENTAL BUDGET RESOLUTION NO. 2019-19 - PORT OF PENSACOLA
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 2019-19
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2019; PROVIDING AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
Since preparation and adoption of the Fiscal Year 2019 Budget, the Port of Pensacola has realized a significant increase in activity levels primarily resultant from securing three (3) new customers (Pensacola Bay Oyster Company, New York Yacht Club’s American Magic, and Blue Origin) whose activities were not considered in estimating Port Revenues during the budget planning process.
As a result of this increased activity, the Port is also seeing an increase in related expenses, most notably an estimated increase of $115,000 in power consumption resultant from all three customers utilizing available shore power.
The supplemental budget resolution will identify the estimated increased revenues and appropriate the expenditure of those funds for the following purposes:
1. Utilities to offset increased power and water consumption.
2. Repairs & Maintenance to offset increased routing facility maintenance costs associated with the increased business activity levels.
3. Transportation and Training to allow a member of Port staff to participate in a planned State of Florida Mexico Trade Mission in support of and for the purpose of marketing the Port’s weekly Mexico container liner service.
4. Unclassified establishing a contingency.
5. Decrease appropriated fund balance by $93,264
The supplemental budget resolution includes a $1 million transfer from the Local Option Sales Tax Fund to the Port Fund to provide funding for the Port’s matching funds for a grant to reconstruct Berth 6 at the Port of Pensacola. The Fiscal Year 2018 Budget included $1 million in the LOST IV Economic Development Initiatives project.
PRIOR ACTION:
November 8, 2018 - City Council adopted the Supplemental Budget Resolution No. 18-50, an unencumbered carryover resolution, appropriating $1,000,000 in the Local Option Sales Tax Fund for the Economic Development Initiatives project for the Port Matching funds.
FUNDING:
N/A
FINANCIAL IMPACT:
Adoption of the supplemental budget resolution will eliminate the appropriated fund balance, increase estimated revenues, establish a contingency, increase appropriated expenses by an equal amount, and provide funding for the Port’s required matching funds for the Berth 6 reconstruction, providing for a balanced budget
CITY ATTORNEY REVIEW: Yes
3/21/2019
STAFF CONTACT:
Christopher L. Holley, City Administrator
Richard Barker, Jr., Chief Financial Officer
Amy Miller, Port Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2019-19
2) Supplemental Budget Explanation No. 2019-19
PRESENTATION: No end