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HomeMy WebLinkAboutR-2005-076 FY2005 MIDYEAR RESOLUTION RESOLUTION NO. 2005-076 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, PROVIDING FOR FUND TRANSFERS AND APPROPRIATION OF FUNDS FOR FISCAL YEAR 2004-2005 AS A MID-YEAR AMENDMENT; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission of Dania Beach approved a budget for fiscal year 2004-2005 in September, 2004; and WHEREAS, in April, 2005, the Department of Finance performed a mid-year review and projected the year-end expenditures and revenues of all funds for Fiscal Year 2005; and WHEREAS, certain changes to the fiscal year budget of appropriations for expenditures have been identified and are proposed for approval; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the General Fund and Capital Projects Fund Budget for the fiscal year 2004-2005 are amended as indicated in Attachment"A". Section 2. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 3. That this Resolution shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on May 10, 2005. 0"_.- a x ANNE CASTRO MAYOR-COMMISSIONER ATTEST: ROLL CALL: COMMISSIONER ANTON - YES COMMISSIONER EERTINO —YES vLOUISE STILSON COMMISSIONER MCELYEA - YES CITY CLERK VICE-MAYOR FLURY - YES MAYOR CASTRO - YES APPROVED AS TO FO M AND CORRECTNESS: BY: " THOMAS J. N BRO CITY ATT' NEY Budget Transfers/Appropriations Attachment"A" FY 2005 Mid Year Revisions Current Increase Revised FY 2005 (Decrease) Budget Explanation GENERAL FUND City Manager/Police 001-1201-512.12-10 $237,058 $5,000 $242,058 Fund bonus Salaries 001-2201-522.31-10 $7,194,972 ($5,000) $7,189,972 Vacancy credit Professional Services PERPETUAL CARE FUND 601-0000-389.90-01 Reappropriated Fund Balance $0 $15,000 $15,000 601-1901-519.31-10 Professional Service $0 $15,000 $15,000 Fund Conceptual Plan Study Agenda Request Form F City of Dania Beach • F. moor m 10= U Agenda Item: dw Date of Commission meeting: 5/10/2005 Description of Agenda Item: Approved mid-year adjustment of FY 2005 budget Commission action being requested: Adopt Resolution or Ordinance © Expenditure ❑ Award BID/ RFP ❑ Presentation ❑ General approval of item ❑ Continued from meeting Other(Please explain): Summaryexplanation and background: A mid-year analysis of the City's finances for all funds were performed.- Certain line items requires - budget amendment. Attached exhibits and additional backup materials (Please list): Staff Memo Resolution For purchasing requests ONLY Department: Amount: Fund: General: ❑ Water: ❑ Sewer: ❑ Stormwater: ❑ Grants: ❑ Capital: ❑ Account Name: Account Number: Submitted by: pvarney Date: 5/3/2005 Department Director: Date: Admin. Services Director: Date: Finance Director: pvarney` Date: 5/3/2 0 City Manager. /' Date: C i r CITY OF DANIA BEACH DEPARTMENT OF FINANCE MEMORANDUM TO: Ivan Pato, City Manager Memo: DF-05-12 FROM:Patricia Varney, Director of Finance DATE: May 2, 2005 SUBJECT: Mid-year Review of FY 2005 budget Purpose Forecast City's finances as of September 30, 2005. Background The Finance Department analyzed the City's revenues and expenditures as of March 30, 2005 and based on this analysis a projection of year-end finances was performed. Although there will be shortfall in revenues, most of the departments will generate a surplus and will be able to cover this revenue shortage. A detail analysis is as follows: • General Fund: As indicated in the past four monthly reports, certain revenue sources are presenting a shortfall. If revenue continues on the current trend, the projection of year-end revenues will have a deficit of $121,000. The analysis is as follows: 1) Telecommunication Tax: ($153,700) The Department of Revenue has corrected some of the major companies which were reporting incorrectly and revenues have been received as budgeted since January 2005. However, it will take some time for the DOR to perform their audit of these companies. The revenue that was short for the first three months of the fiscal year may not be recuperated in this fiscal year. To be conservative, we are forecasting a shortfall of$153,700. 2) Building Permits: ($165,000) Activity has increased for the past two months. Revenues from the past three months range from the lowest of$47,000 to the highest of$59,000. With a forecast of$55,000 per month for the next five months, this revenue source will recognize a shortfall of$165,000 for the fiscal year. The shortfall may be attributed to increased construction costs, county/state regulatory requirements delaying city permit approval, and insufficient building inspection service hours. To reduce plan review time and provide additional inspection services, the City is negotiating a new building services contract with Broward County to increase building inspection services to at least 100 hours per week, 35% more than what is currently being provided. The shortfall of revenue may then be less than what is being forecasted. • 3) Plan Reviews: ($83,610) During the FY 2005 budget process, an Engineer position was proposed and revenues were to be • generated from plan reviews. However, this position is still currently vacant and no revenues have been recognized. This shortfall of revenues is partly offset by expenditures. 4) Recreation Fees ($34,560) Some of the major revenues shortfall is as follows: Due to the necessity of installing an alarm system in the Frost Park Community Center, programs for the Center have been delayed. A shortfall of approximately$25,000 in rentals and programs are projected in Recreation fees. I.T. Parker's rentals have been increased for the past two months to approximately$6,000 per month compared to an average of$2,000 per month for the first five months. A projection of$5,000 per month until year-end will recognize a shortfall of approximately$3.000 for year end. Approximately$5,000 is forecasted as shortfall for special events. This is partly due to unable to generate share of revenues from the Cruise Nights. 5) Judgments & Fines ($48,690) As reported in the February report, our understanding is the fines have gone up because of the implementation of Article 5 which requires the Clerk of the Court to be self-funded. The Clerk of the Court has received more contested tickets with the higher fines and it takes time to run through the judicial process. The Clerk of the Court also agrees to provide the City information on court cases handled during this fiscal year and last fiscal year, so the City can perform a detailed analysis as to whether there are more cases where fines are being reduced or dismissed. Currently, we are waiting for the Clerk of the Court to provide us with this information. • 6) Code Violations ($100,000) Year-to-date revenue is $54,738 which is the lowest for the past four years. Last fiscal year for the same period of time generated revenue of$212,119. We understand $40,000 will be received in the month of May. Should this occur,we are forecasting a shortfall of$100,000. 7) Pier Lease ($13,000) Due to the construction of the pier restaurant, access to the pier will be closed to the public. We are projecting no revenues be received for the last two months of the fiscal year. 8) Revenue sources that will generate a surplus Certain revenue sources are projecting to be higher than budgeted. Some of the major line items are Electric Utility Taxes - $50,000; Water Utility Tax - $37,000; Half Cents Sales Tax - $67,200; Interests Earnings - $190,000; Harbour Towne Lease - $35,000 (due to percentage rent), and higher collections for property tax and fire assessment- $80,000. As for expenditure, it is forecasted that expenditures will come in lower than budgeted. With the continuous rise of gasoline prices, some departments are projecting a shortfall in this line item. However, the departments will be able to cover this shortfall from savings within the department. Further, since the budgetary control is at the department level which means as long as the departments total expenses do not change, the department can transfer funding from one line item to another, with the exception of capital outlay accounts, subject to the approval by the City Manager. I would like to bring to the attention of the Commission some major changes in line items for certain departments: 1) Building Division: 0 The Building Official position as well as the Plumbing Inspection position has been vacant since the beginning of the fiscal year. The Director of Community Development is in the midst of negotiating a contract with Broward County to provide such services. There will be transfer from the salaries and fringe benefits accounts to the professional line item account to cover the cost. • 2) Recreation: The air conditioning unit in the I.T. Parker Community Center is beyond repair. A new unit has to be installed in the amount of$13,900. The P.J. Meli Aquatic Center was budgeted for operation for six months; however, it has been in full operation for the year. A shortfall of approximately $51,000 in part-time salaries will be recognized. Since the City have received grant funding for all three summer camp sites, there are savings in the Summer Program budget which will be able to cover the deficit. 3) Legal Department: Since the union contract has not been ratified, the City continued to pay Mr. Ansbro and his assistant through a contract with Weiss,Serota. Therefore, all amount budgeted through salaries and fringes are transferred to the professional services account. There is a shortfall of$17,726 under the current contract. The deficit will be funded from the Airport Consultant services of which have a funding of$250,000 in FY 2005 budget. 4) City Manager: The Commission has approved a $5,000 bonus for the City Manager, and also because of the trips to Tallahassee with regard to the slot machines, the City Manager's department is projected to be short by$7,000. A transfer is required from the Police Department. 5) Surplus Although most departments will realize some kind of surplus, the following departments will be • experiencing some drastic savings. The City Clerk's Office is projected to generate a surplus of $50,000. This is mostly due to reduce cost for re-codification as there are fewer changes than original expected with regard to the City's Charter. The Police Department during the first six months generated a savings of$137,000 due to vacancy credit. The Airport related expenses is budgeted at $250,000, however, the activities for the first six months are lower than expected. As indicated earlier, the Engineer position has been vacant and is forecasted to generate at least $52,000 in savings. Enterprise Funds: There appears no concern in the Water, Sewer or Stonnwater Fund. Projection of year-end revenues and expenditures for all these three funds are within budget. Perpetual Care Fund The City is in the process of obtaining a conceptual study for planning for future improvement of the cemetery. Thissplan will include potential construction of a mausoleum. A request of$15,000 is to be appropriated from the Perpetual Care Fund Fund Balance. •