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G-10-10-14-8B4 - 10/14/2010ORDINANCE NO. w-� AN ORDINANCE ADOPTING AMENDMENT NO. 1 TO THE OPERATING BUDGET OF THE CITY OF ROUND ROCK, TEXAS FOR FISCAL YEAR 2009-2010. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: That the operating budget for the City of Round Rock, Texas for Fiscal Year 2009-2010 is hereby revised for municipal purposes pursuant to §102.010, Local Government Code and in accordance with the proposal submitted to the Council by the City Manager, which proposal is attached hereto as Exhibit "A" and is incorporated into this ordinance by reference for all purposes. The City Secretary is directed to file a certified copy of this ordinance along with a true copy of the attached revised budget with the County Clerk of Williamson County, Texas. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. READ and APPROVED on first reading this the 23day of 2010. READ, APPROVED and ADOPTED on second reading this the I fth day of e.le- , 2010. ATTEST: SARA L. WHITE, City Secretary O:\wdox\SCClnts\0112\ 1005\MUNICIPAL \00202403.DOChmc ALAN MCGRAW, Mayor City of Round Rock, Texas City of Round Rock, Texas Budget Revision #1 Fiscal Year 2009-2010 GENERAL FUND 2009-2010 2009-2010 Original Revised Budget Budget #1 Variance Revenues $ 84,022,002 $ 85,722,002 $ 1,700,000 Expenditures (84,021,128) (85,721,128) (1,700,000) Total Change in Fund Balance $ 874 $ 874 $ UTILITY FUND Revenues $ 37,582,915 $ 37,582,915 $ Operating Expenditures (37,581,638) (51,581,638) (14,000,000) Change in Operations 1,277 (13,998,723) (14,000,000) Transfer to Self Financed Construction $ Change in Working Capital $ 1,277 $ (13,998,723) $ (14,000,000) 9/16/2010 EXHIBIT A» 1 Budget Revision #1 Fiscal Year 2009-2010 GENERAL FUND Revenues DEPARTMENT City of Round Rock, Texas 2009-2010 2009-2010 Original Revised Budget Budget #1 Variance $ 84,022,002 $ 85,722,002 $ 1,700,000 Administration - 12 $ (2,196,755) $ (2,049,555) $ (147,200) Legal Services - 13 (1,010,500) (850,500) (160,000) Planning - 14 (1,662,286) (1,562,236) (100,050) Information Technology - 15 (2,701,780) (2,710,580) 8,800 Building Inspections - 16 (854,474) (840,474) (14,000) Finance - 17 (1,624,450) (1,469,750) (154,700) Purchasing - 18 (593,016) (549,016) (44,000) General Services - 19 (10,850,011) (11,374,011) 524,000 Library - 20 (2,403,898) (2,331,398) (72,500) Police - 21 (22,468,797) (21,784,297) (684,500) Fire - 22 (12,905,324) (12,544,229) (361,095) Parks & Recreation - 23 (9,299,852) (8,100,952) (1,198,900) Human Resources - 24 (1,044,396) (960,896) (83,500) Engineering & Dev. Svcs. - 25 (3,604,182) (3,310,882) (293,300) Street - 26 (8,131,985) (7,559,485) (572,500) Transportation - 27 (866,327) (714,827) (151,500) City Shop - 28 (1,079,823) (1,009,823) (70,000) Municipal Court - 29 (723,272) (681,272) (42,000) General Government - Transfer (5,316,945) 5,316,945 Total Expenditures $ (84,021,128) $ (85,721,128) $ 1,700,000 9/16/2010 2 Budget Revision #1 Fiscal Year 2009-2010 UTILITY FUND Revenues DEPARTMENT City of Round Rock, Texas 2009-2010 2009-2010 Original Revised Budget Budget #1 $ 37,582,915 $ 37,582,915 $ Variance Utility Administration - 40 $ (982,288) $ (992,288) $ 10,000 Water Treatment Plant - 41 (7,720,445) (7,720,445) Water Systems Support - 42 (3,805,246) (3,805,246) Water Line Maintenance - 43 (2,324,651) (2,324,651) Wastewater Treatment Plant - 61 (11,243,581) (7,618,381) (3,625,200) Wastewater Systems Support - 62 (912,127) (912,127) Wastewater Line Maintenance - 63 (1,854,862) (1,854,862) Environmental Services - 64 (577,166) (577,166) Utility Billings & Collections - 81 (1,278,868) (1,268,868) (10,000) Transfers - 95 (6,882,404) (24,507,604) 17,625,200 General Government - Other - Total Expenditures $ (37,581,638) $ (51,581,638) $ 14,000,000 Scheduled Transfer of Available Working Capital 9/16/2010 3 Budget Revision #1 Fiscal Year 2009-2010 City of Round Rock, Texas General Fund - Effect of the revision on fund balance: Fund Balance 10/01/09 $ 41,708,023 Less Reserves ( *1) (29,937,972) Estimated Revenue (FY 2009-2010) 83,097,602 Interfund Transfers 2,624,400 Total Funds Available 97,492,053 Budgeted Expenditures (85,721,128) Estimated Unreserved Fund Balance 9/30/10 $ 11,770,925 * 1 Reserve requirements established in accordance with operating reserve policies. Utility Fund - Effect of the revision on working capital: Estimated Working Capital 10/01/09 $ 31,348,058 Less Reserves (*1) (13,529,390) Estimated Revenue (FY 2009-2010) 37,582,915 Interfund Transfers (2,646,000) Total Funds Available 52,755,583 Budgeted Expenditures (48,935,638) Estimated Working Capital 9/30/10 $ 3,819,945 (* 2) * 1 Reserves are established in accordance with operating reserve policies. *2 Funds are designated for Capital Improvements to the Utility System. 9/16/2010 4 City of Round Rock Budget Revision #1 Fiscal Year 2009-2010 Summary of Significant Adjustments General Fund Revenue Adjustments: Property Tax Sales Tax Reverse Transfer Interest Income Recreation Fees FY 2010 Explanation $ 300,000 Higher than expected payments 4,000,000 Increase in Dell sales tax revenues (1,200,000) Transfer from Self -finance construction reversed (500,000) Market adjustment (150,000) Program and Membership fees below estimates Reduced police fines & delay of Red Light Camera (485,000) program Fines & Forfeitures Building Permits Subdivision Fees Miscellaneous (100,000) Construction activity below estimates (130,000) Reduced development activity (35,000) Reduced fees for development services Total Revenue Adjustments - General Fund Expenditure Adjustments: Salary Savings Payroll adjustment $ 1,700,000 Contractual Services Savings Materials and Supplies Savings Dell payment Other Services Savings Capital Outlay 2011 Capital Spending Plan Transfer Primarily due to vacancy savings from unfilled positions $ (2,288,200) and insurances savings 416,000 One time Lump sum adjustment to payroll Savings in legal fees, lower electricity costs, reduced contract labor in PARD, reduced cost of street lighting and (1,339,000) delay in Red Light Camera program Reductions in budgeted fuel costs, savings of Library, PARD and Police supplies, savings in uniform contract, PARD savings in grounds maintenance and lower repair & (632,200) maintenance of Traffic signals, Increase to budgeted amount due to increased in Dell 1,000,000 sales taxes collected Reductions in budgeted travel and training expenses, reduced expenses for Storm Water Management and other miscellaneous expenditures below budgeted (636,450) amounts Overall savings through aggressive costing of capital (137,095) items Allocate Fund for strategic projects through 2011 Capital 5,316,945 Spending Plan Total Expenditure Adjustments - General Fund $ 1,700,000 Ute Fund Revenue Adjustments: Revenue Adjustments Total Revenue Adjustments - Utility Fund $ 30,000 $ 30,000 One time Lump sum adjustment to payroll Expenditure Adjustments: Transfer to Self Financed Construction $ (14,000,000) Transfer to Self Finance Construction for Capital Projects Total Expenditure Adjustments - Utility Fund $ (14,000,000) ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY Agenda Item No. *8B4. City Council Agenda Summary Sheet Consider an ordinance adopting Amendment No. 1 to the FY 2009 — 2010 Operating Agenda Caption: Budget. (Second Reading) Meeting Date: October 14, 2010 Department: Finance Staff Person making presentation: Cheryl Delaney Finance Director Item Summary: The budget revision allocates available cash from this fiscal year (FY2009-2010). Due to reduced sales tax collections early in the fiscal year, significant revenue shortfalls were anticipated. City departments were asked to proactively respond this financial situation --many positions were held open and operational expenses reduced. Due to this proactive approach and better than expected sales tax collections, the City was able to generate over $5 million in savings. A portion of these savings will be used to provide public service employees with pay adjustments for one-time pay -for- performance. The pay -for -performance program was suspended in April of 2009 due to decreased revenues and a downturn in the local economy. Over $5 million will be moved to the Self -financed Construction fund to be allocated as directed by council. This amendment also reflects the planned allocation of available funding from the Utility Operating funds to fund capital construction programs. Strategic Plan Relevance: 8.0 — Maintain and enhance public confidence, satisfaction and trust in City Government Cost: N/A Source of Funds: N/A Date of Public Hearing (if required): N/A Recommended Action: Approval