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HomeMy WebLinkAbout02112019 City Council Work Session - Laydown - 2019 Mid-Cycle Budget Adjustments C ofSft9 I 1 DI Ci5VAG; VYS 4LA MEMO OFFICE OF THE CITY MANAGER TO: Mayor Squires and City Council Members FROM: Jeff Bridges, Interim City Manag; • CC: Brennan Hickok,Assistant City ..ler Kris Erchinger,Finance Director DATE: February 8, 2019 SUBJECT: 2019 Mid-Cycle Budget Adjustments Attached is the packet of information with the recommendations for 2019 mid cycle budget amendments. The following pages are in the packet. • Page 1: Proposed 2019 revenue adjustments which add$587,260 in revenue to the 2019 budget. The spreadsheet contains each revenue adjustment. • Page 2: Proposed 2019 expenditure adjustments increasing expenditures by $426,790. The spreadsheet contains each proposed expenditure adjustment. • Page 3: Proposed 2019 adjustments to transfers reducing transfers from the General Fund by$127,567. • Page 4: A spreadsheet on the SMIC Enterprise Fund Balance(this sheet is in conjunction with reducing the General Fund transfer to SMIC). • Page 5: A summary of the proposed changes and summaries of the estimated General Fund balance for 2018 and 2019. • Page 6: A letter from Dana Paperman, Executive Director of the Seward Senior Center requesting an additional $7,900 to increase an Administrative Assistant to full time. Grant funding for this position is expiring. • Page 7: The request from Tom Clemons Chief of Police for additional funding in 2019 for recruit training. • Page 8 & 9: A memo from Brenda Ballou, City Clerk,requesting various budget adjustments for 2019. The net result of these amendments is a 2019 budget that is balanced without using Fund Balance and an estimated total fund balance increasing from $7,519,521 to $8,630,517. 2019 Proposed Mid-Cycle Budget Adjustments-General Fund Revenues REVENUE CHANGES: Revenue Increases: Revenue Decreases: Amount Account Name Account Number Description Amount Account Name Account Number Description S 300,000 Sales Tax 01000.0000.4000 Sales tax revenue (9,840)ASLC Contra PILT 01000-0000-4031 ASLC Contra PILT 50,000 Real Property Tax 01000-0000-4010 Real property tax revenue (10,000)Building Permits o1000-0000-41oo Building permit fee revenue 20,000 Personal Property Tax 01000-0000-4000 Personal property tax revenue (5,000)DMV Drivers Licenses 01000-0000-4103 Drivers License revenue 15,000 Hotel/Motel Room Tax 01000.0000-4020 Bed tax revenue (4,000)Punchcard fees 01000.0000-4341 Punchcard fee revenue 5,000 DMV Motor Vehicles 01000-0000.4103 Motor Vehicle license revenue (6,000)Work orders 01000-00004354 Work orders 3,000 Business Licenses 01000-0000-4105 Business license revenue (3,900)Rents&Leases 01000-0000-4360 Food pantry rent 130,000 Raw fish tax 01000.00004206 Raw fish tax revenue 3,000 Shower fees 01000-0000-4347 Shower revenue $ (38,740.00) 40,000 Camping Fees 01000-0000-4350 Camping fees 40,000 Investment interest 01000-0000-4500 Investment earnings 20,000 City Hall Rent 01000-0000-4383 State rent of City Hall at 17.5% S 626,000 S 626,000.00 Revenue Increases (38,740.00) Revenue Decreases $ 587,260.00 Net Increase in Revenues J 2019 Proposed Mid-Cycle Budget Adjustments- Expenditures EXPENDITURE CHANGES: Expenditure Increases: Expenditure Decreases: Amount Department Account Name Description Amount Department Account Name Description S 210,309 Public Works Personnel Add Oper/Mechanic&Shop Foreman $ 88,958.00 Custodian Personnel Costs Various 5,000.00 City Clerk Personnel Sunirner intern 30,000.00 General Services PERS DC Forfeitures PERS DC Forfeitures 192,289.00 Various Health Insurance Rateincre•se 15,600.00 General Services Fees Banking/credit card fees 20,000.00 City Clerk Contracted Services Website 14,000.00 Library Contracted Services ianrtora 25,000.00 General Services Engineering New general purpose engineering 17,750.00 General Services Other Services wage study 24,900.00 Police Education&Training Police recruits trumng 7,900.00 Contributions Contributions Increase to Sr.Center 3,000.00 City Clerk Elections upturning Special Election 10,000.00 Mayor&Council Equipment Counai chambers sound system $ 545,748.00 S 118,958.00 S 545,748.00 Expenditure Increases (118,958.00) Expenditure Decreases $ 426,790.00 Net Increase in Expenditures On 2019 Proposed Mid-Cycle Budget Adjustments-General Fund -Transfers TRANSFER CHANGES: From General Fund: To Fund: Amount Fund Account Name Account Number Amount Fund Account Name Account Number (102,567) General Fund Reduce T/F-Out 01000.0000-3710.12000 (102,567)SMIC Fund(2019) Transfers-In 12000-0000.3700.01000 (100,000) General Fund Reduce T/F-Out 01000-0000-3710-12000 (100,000)SMIC Fund(2018) Transfers-In 12000.0000-3100-01000 75,000 General Fund Transfers-Out 01000-0000-3710-19100 75,000 Healthcare Fund Transfers-In 19100.0000-3700-01000 $ (127,567.00) General Fund Transfers-Out $ (127,567.00) 127,567.00 Total Reduction In Transfers-Out of General Fund SMIC ENTERPRISE FUND SUMMARY OF PROJECTED FUND BALANCE(based on 2018 estimated actuals): Proposed 2018 2019 2019 Actual(2018)/Estimated(2019)Beginning Cash Balance (44,570) 378,037 378,037 (+)Estimated 2018 Cash-Basis Actual Revenues and Projected 2019 950,010 505,195 505,195 (-)Estimated 2018 Cash-Basis Actual Expenditures and Projected 2019 698,906 589,211 589,211 (+)Estimated Net Transfers-In(Out) 171,503 (13,342) (215,909) Estimated Ending Cash Balance $ 378,037 [ ", 711;; 1; Note,excludes non-cash revenues and expenses: 2018 2019 Amortization(revenue) 505,981 505,980 Depreciation(expense) 783,463 1,017,898 Prior year expense reduction charged to grant (246,563) Revenues include one-time grant overhead 323,530 If SMIC 330-Ton Travelift loan is paid off in 2019,savings of$98,008 per year in future loan-related debt costs S 2019 Analysis of General Fund-Fund Balance SUMMARY OF MID-CYCLE PROPOSED CHANGES: $ 587,260.00 Net Increase in Revenues 426,790.00 Net Increase in Expenditures (127,567.00) Reduction in Transfers-Out $ 288,037.00 Estimated Increase(Decrease)in Fund Balance SUMMARY OF 2019 FUND BALANCE(based on budget): Original Amended Proposed Projected 2019 2019 2019 2019 Budget Budget Mid-Cycle Final Budget (adopted 11/27/2017) (thru 2/05/2019) Changes Revenue 10,886,549.00 10,886,549.00 587,260.00 11,473,809.00 (-)Expenditures 11,660,454.00 11,880,128.00 426,790.00 12,306,918.00 (+)Transfers-In 2,104,941.00 2,104,941.00 - 2,104,941.00 (-)Transfers-Out 1,379,067.00 1,379,067.00 (127,567.00) 1,251,500.00 Budgeted Beginning Fund Balance• $ 7,566,128.00 7,499,208.54 $ 7,499,208.54 Change in Fund Balance (48,031.00) (267,705.00) 288,037.00 $ 20,332 Budgeted Ending Fund Balance $ 7,518,097.00 7,231,503.54 •Updated to reflect CAFR 12/31/17 balance and 2018 Mld.Cycle Budget Adjustments SUMMARY OF PROJECTED FUND BALANCE(based on 2018 estimated actuals): 2018 2019 Actual Beginning Fund Balance 7,477,288 8,610,204 (+)Estimated 2018 Actual Revenues and Projected 2019 12,043,735 11,473,809 (-)Estimated 2018 Actual Expenditures and Projected 2019 11,307,956 12,306,918 (+)Estimated Net Transfers-In 397,137 853,441 Estimated Ending Fund Balance $ 8,610,204 $ 20,332 Dote:01/07/2019 2019 Revenues 11,473,809.00 Transfers-In 2,104,941.00 Revenues+Transfers-In 13,578,750.00 Expenditures 12,306,918.00 Transfers-Out 1,251,500.00 Expenditures+Transfers-Out 13,558,418.00 $ 20,892.00 .. November 30t, 2018 ii r ,,..„4:411;i Mr.Jeff Bridges, City Manager PO Box 167 • T.41!,/ Seward,Alaska 99664 R Dear Mr. Bridges, 2018 Board of Directors We so appreciated you taking the time out of your busy day to stop Mark Kansteiner in and visit the center, alongside our honorable council members,who embrace our community senior services. Sandie Roach The center builds on strong partnerships to provide high quality, Nicole Lawrence culturally sensitive, accessible services for individuals 60 and older to live healthy, independent, meaningful lives in the place and manner of Diane Hunt their choosing. We encourage social, intellectual and physical Sandie Roach activities,that have positive results in a senior's quality of life. Mark Hensbee Center staff, volunteers and Board members are the hearts and Frances Azzad-Smith hands of senior services; offering compassionate care, nourishment for the body and mind, invigorating a supportive culture to maintain a Sharon Dillon healthy lifestyle here in Alaska. Angie Duncan Today we are seeking an increase in city funding at $7,900.00, to increase the Administrative Assistant position to full time. These necessary hours aid the center in supporting multiple services, five days Executive Director a week. Currently, our Providence grant ends in February 2019, after Dana Paperman running three successful years of the Aging Mastery Program, an evidence based educational program. This grant added hours to the Our Mission Statement Administrative Assistants position and with this increase, we were able To insure honor, dignity, to serve more and do more. The City of Seward contribution would security,and independence for provide permanence to the valuable seniors support services. older Alaskans; assistance in maintaining meaningful and quality lives. Thank you for recognizing our needs and for the consideration Serving senior citizens for 40 years of our financial request of an increase in funding. A non-profit agency Warm regards TAX ID: 92-0072425 WIMADana Paperman � G � Email: ssc@seward.net Web: www.sewardsenior.org 6 Fnrphnnk: lif Me 2O1a ieE�.;a.RF, Seward Senior Center, PO Box 1195,Seward,AK 99664/907-224-5604 Jeyes From: Tom Clemons Sent: Wednesday, November 07, 2018 10:52 AM To: Jeff Bridges Cc: Kris Erchinger Subject: 2019 Budget Adjustment Good morning Jeff, Last year the Legislature voted not to fund the Alaska Police Standards in the cost to send officers to both the Police Academy(ALET 18-02) and Municipal Corrections Academy(MCO). Attendance to these Academies are required by law. We will be sending two officers to the ALET Academy and one officer to the MCO. So it is necessary to make a 2019 Budget Adjustment to line item 1210-7303 Education and training to add on to the approved 2019 budget as follows; Academy cost: ALET 18-02: 11,888.23 tuition, room and board (not salary or travel)each officer MCO#009: 856 (room and board only)there is no tuition to the DOC academy. It would good to round these numbers up for flexibility. The total adjustment would be $24,900. Thanks Chief Thomas Clemons Seward Police Department PO Box 167 Seward, Alaska 99664 ,4 � " ' Ni^rw.stoea&dea.*asa Of kis This information contained in this message is CONFIDENTIAL AND/OR PRIVILEGED. This message is intended for the individual/entity named above.Any use by others is strictly prohibited 1 2019 Mid-Cycle Budget Amendment City Clerk's Office Requests CITY WEBSITE REDESIGN PROJECT + $15,000 website redesign&hosting to account 01000-1113-7009 Contracted Services (clerk) + $5,000 summer intern for content upload to account 01000-1113-6000 Salaries (clerk) At the direction of council, the clerk has researched cost-effective improvements to the city website. The result would be a mobile-app friendly website, and an improved look & feel. Several vendors have been researched and are being considered, including CivicPlus, Revize, Municode, and Granicus. The project will take 6-8 months to complete. Successful completion of the project will entail transferring content from the "old" website into the "new" website. It is anticipated that individual departments will not have the capacity to dedicate the staff time necessary for this transition, so the clerk is recommending hiring an intern to provide that service; this will provide a common "voice" to the content, and provide a student with valuable career experience. Following that, department representatives will be trained on the new system and will take over their normal content management duties. SOCIAL MEDIA PLATFORM + Establish city policy + $5,000 "screen scraper"vendor for records retention to account 01000-1113-7009 Contracted Services(clerk) In anticipation of the city moving towards establishing a social media policy, the clerk has researched vendors who provide services for social media record retention. The state and federal governments consider social media platforms for municipalities to fall under the guidelines for record retention. The city cannot feasibly provide these services on its own, but a third-party vendor can cost-effectively provide "screen scraping" services to meet the requirements of record retention; this includes the ability to retrieve records in their natural state, as required by state law. MICROPHONE/SOUND SYSTEM IN COUNCIL CHAMBERS + $10,000 equipment to account 01000-1110-7215 Operating Supplies(council) At the direction of council, the clerk and the city manager have researched cost-effective improvements to the sound system in council chambers in order to improve the citizen experience. There are a variety of options for addressing the situation, including adding microphone on/off switches, an amplification/speaker system for the audience to hear, and new sound equipment to enable live streaming and playback. ELECTIONS + $3,000 to account 01000-1113-7804 Elections The annual budget for elections ($4,000) is not sufficient to carry the costs incurred with the Special Election scheduled on March 19, 2019. For the Special Election to date, the clerk's office has already spent nearly $2,300 for advertising, polling location (KM Rae Building), and ballots; remaining costs include payment for election board and canvass board workers, food, balloons, and other items.