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Home My WebLink AboutR-2008-057 Mid-Year Budget Adjustment RESOLUTION NO. 2008-057 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, PROVIDING FOR FUND TRANSFERS AND APPROPRIATION OF FUNDS FOR FISCAL YEAR 2007-2008 AS A MID-YEAR BUDGET AMENDMENT; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Dania Beach approved a budget for fiscal year 2007-2008 in September, 2007; and WHEREAS, in March, 2008 the Department of Finance of the City performed a mid-year review and projected the year-end expenditures and revenues of all funds for Fiscal Year 2008; and WHEREAS, certain changes to the 2007-2008 fiscal year budget of appropriations for expenditures have been identified; 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 for the fiscal year 2007- 2008 are amended as per Attachment "A", incorporated by this reference. 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 That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict.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 April 8, 2008. ATTEST: ,( ALBERT C. JONES MAYOR-COMMISMMISSIO R LOUISE STILSON, CMC CITY CLERK APPROVED AS TO RM ND CORRECTNESS: BY: � f TH MA J. S O CITY ATTORNEY Attachment "A" Current Increase Revised Explanation FY 2008 (Decrease) Budget GENERAL FUND General Administration 001-1800-519.99-10 $431,351 ($20,000) $411,351 Review training policy Contingency as per Dec. 11 Commission mtg. rscl` , �rss q}}'r� iqW Wy} his s d ..: ,, ,,. .. m. . ... ... _ Human Resource Department 001-1300-513.40-10 $9,340 $20,000 $29,340 Review training policy Training as per Dec. 11 Commission mtg. I �� qg ¢ , . ' Community Development 001-1501-515-12.10 $444,465 ($50,897) $393,568 Salaries 001-1501-515.21-10 $28,644 ($3,362) $25,282 FICA 001-1501-515.21-20 $7,284 ($786) $6,498 Medicare Transfer Business License Tax 001-1501-515.22-10 $121,882 ($3,324) $118,558 Division to Code Compliance Pension Division effective 4/1/2008 001-1501-515.23-10 $58,576 ($4,902) $53,674 Insurance 001-1501-515.24-10 $1,780 ($381) $1,399 Worker's Compensation 001-1501-515.51-10 $3,600 ($300) $3,300 Office Supplies �.Gss�}."f�;, . .ti`t..n .�.... .. MA is,; ,. .. r; . 001-1203-529-12.10 $419,027 $50,897 $469,924 Transfer Business License Tax Salaries Division to Code Compliance Division effective 4/l/2008 001-1203-529.21-10 $26,875 $3,362 $30,237 2 RESOLUTION#2008-057 Attachment "A" Current Increase Revised Explanation FY 2008 (Decrease) Budget FICA 001-1203-529.21-20 $6,285 $786 $7,071 Medicare 001-1203-529.22-10 $67,192 $3,324 $70,516 Pension 001-1203-529.23-10 $94,359 $4,902 $99,261 Insurance 001-1203-529.24-10 $25,697 $381 $26,078 Worker's Compensation 001-1203-529.51-10 $5,500 $300 $5,800 Office Supplies 3 RESOLUTION#2008-057 CITY OF DANIA BEACH DEPARTMENT OF FINANCE MEMORANDUM TO: Ivan Pato, City Manager Memo: DF-08-15 FROM: Patricia Varney, Director of Finance DATE: April 1,2008 SUB=: Mid-year Review of FY 2008 budget Purpose Forecast City's finances as of September 30, 2008. Backeround Projection of year-end finances was performed based on the City's financials as of March 15, 2008. A detailed analysis is as follows: General Fund: Based on the trend of this fiscal year, it is projected the City will experience a shortfall of approximately $650,000 in revenue. The major variances are as follows: Revenue projected to be higher than budgeted totaled $139,300. They are as follows: 1) Transport Fees: $33,250 2) Parking Revenues: $28,800 3) Harbour Towne Lease: $34,250 The increase is attributed to the percentage rent. 4) Occupational License: $43,000 The major revenue that may result in shortfall totaled approximately$790,730. They are as follows: 1) Property Tax: $75,000 Early projection is approximately$200,000 due to Valuation Board adjustment. However, should trend continues,the City may generate 98%of revenue instead of 95% as budgeted. 2) Building Permits: $194,000 Due to economy and slow activities in the industry. 3) State Revenue Sharing: $148,380 This revenue is projected by the State. At the end of the State's fiscal year which is June 30, based on their true collection they will adjust payment to the City. Based on last year's trend of the percentage of adjustment and the current amount received from the State, it is projected to realize a shortfall. 4) Half Cents Sales Tax: $245,350 This revenue is also projected by the State. Based on the trend of receipts this fiscal year compared to receipts of fiscal year 2007 for the same period of time, a projected shortfall of $245,350 may be realized at the end of FY 2008. 5) Fire Assessments: $61,000 Based on the trend receipt this fiscal year compared to last fiscal year, and the year-to-date receipt of FY 2007, a shortfall of$61,000 may realized. 6) I.T. Parker Rentals: $29,000 Due to economy and higher rental rates. 7) Plan Reviews: $38,000 This revenue is to account for time spent by the Community Development Director, City Attorney and Public Services Director. Upon the departure of the Community Development Director, outside consultant will be engage to perform his scope of service; therefore, it will be revenue neutral to cover the costs of the consultant. As for expenditures, it is forecasted most departmental expenditures will come in within budget with the exception of the Human Resource Department. The Commission at the December 11, 2007 meeting made the motion to provide funding of up to $30,000 for a consultant to review the policy and training to avoid future liabilities with regard to the News Times article. In order to fund the deficit of the shortfall of the revenue, staff is recommending the following: 1) Vacancy credits: A hiring Freeze has been imposed by the City Manager in January, and it will generate a savings of approximately$198,000 for 4 positions (Technical Support Supervisor, Code Compliance Officer, Fire Chief(9 months) and Maintenance Worker). 2) Workers Compensation: The amount billed by the carrier compared to budget reflects a $107,000 in savings. 3) Griffin Road Corridor: $100,000 4) Summer Program: Provides summer program at one recreation center as in previous year, and utilize T.I.M.E. for Kids program. This will provide a saving of$60,000 5) Contingency: $150,000. After the reduction of this $150,000, the City still has an available fund of$234,180 for the remaining of the year to appropriate for any emergency. 6) $35,000 from reserve for future capital projects. As for CRA funding, the Commission approved$100,000 for the engagement of a CRA director. Also, in the FY 2008 budget, $45,000 was appropriated for services provided by the CRA attorney, for a total $145,000 for CRA related expenses. Based on the expenses in February and projected expenses in March for the CRA attorney, Moskowitz, Mandell, Salim, PA and the hiring date of the CRA director, there is an available funding of$80,539 for the remaining of this fiscal year for CRA expenses. The budget that the CRA Director submitted to the Commission on March 26, 2008 in the amount of$261,895 was not addressed in this mid-year process. Marina Fund: Based on the six months of revenue,it is projected that rental revenue will be short by approximately $19,000. Security services will be overspent by$1,870,payment to Aragon will be more than budgeted by$3,100 due to higher CPI than budgeted, and repairs to the fence at the marina in the amount of$3,700 not being budgeted. It is projected that the Marina will recognize a deficit of approximately$28,000 for fiscal year 2008. Enterprise Fund Water Fund The Water Fund revenue and expenditures are within budget allocation. Sewer Fund Sewer Fund revenue is projected to be short by approximately$191,000. This is mainly due to water restriction imposed by SFWMD for the year. The surcharge that the City imposes is only for water revenue and not sewer. Based on the trend of the payments to City of Hollywood for the sewer usage,this fiscal year is 45.9% higher than last year for the same period of time. It is estimated that this account will be overspent buy approximately$309,000 of which the Sewer Fund may recognize a deficit for the year of approximately $500,000. A hiring freeze will be imposed on the Sewer Fund should any vacancy arise. Stormwater Fund The revenue comes in higher than projected and is estimated it will generate an additional $70,000. This is mainly attributed to digitizing of the properties. The expenditures are within budget allocation. In summary the combined estimated deficit for FY 2008 for all funds is $1,178,000 ($650,000 in General Fund, $28,000 in Marina Fund and $500,000 in Enterprise Fund)