| | | | | | | | CITY OF OAKLAND PARK, FLORIDA
CITY COMMISSION AGENDA ITEM REPORT
AGENDA ITEM NO. 9 | | MEETING DATE: 2/21/2018 |
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| | | | | | | | | PREPARED BY: | Andrew M. Thompson, CGFO
Director, Financial Services
Rhea Rivera, CGFM
Assistant Director, Financial Services
Maggie Turner, CPPB
Purchasing Manager, Financial Services | DEPARTMENT HEAD APPROVAL: | FINANCIAL SERVICES |
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| | | | | | | | | SUBJECT: FY18 Budget Amendments: Encumbrance Rollovers from FY17 and FY18 Adjustments |
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| | | | | | | | | 1. | BACKGROUND/HISTORY
| | | Issue Statement: Reallocation of appropriations needed in FY 18 to provide funding for goods and services approved and appropriated in FY 17, but that will be expended in FY 18 (rollovers).
Recommendation: City Commission approve a resolution amending the FY 18 budget.
Often there are purchases of various goods and services which were approved, appropriated, and encumbered in a given fiscal year that are not fully completed by the end of said fiscal year. In these instances, the remaining balance of encumbrance is expended in the following year and the funds previously approved for these acquisitions are "rolled" into the following year's budget in what are termed "rollovers."
In addition, the annual budget adopted in September 2017 prior to the start of the fiscal year is appropriated on the departmental/division function level. The adopted budget establishes spending limits for every departmental functional area (personal services, operational, capital, etc.). Appropriation adjustments are necessary as events occur that affect the budgeted amounts needed at the function level for each department to ensure sufficient funds are available. Budgets prior to FY 13 were adopted solely on the departmental level; commission approval was only needed to appropriate between departments and funds. Since FY 13, due to changes in State requirements, Commission approval is needed to move funds between functional areas within any given department.
State accounting compliance requirements now extend to rollovers. Prior to FY 12, rollovers were considered approved at the time the new budget was adopted and were added to the budget as an administrative process by staff. A budget amendment adopted by the Commission is required to move these funds from the last fiscal year into the current fiscal year. |
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| | | | | | | | | 2. | CURRENT ACTIVITY
| | | Rollovers: The Purchasing Division has determined which overlapping / ongoing projects, along with the corresponding funding, must be moved ("rolled over") to the new budget in order to complete the projects. The rollovers represent purchase orders issued and funded in the prior year.
The majority of these purchase orders are in relation to major capital projects awarded by the Commission in previous years, such as the Stunson Nature Trail and the NW 10th Avenue design, in previous years and vehicles, including two Solid Waste Side Loader trucks ($0.55m) and one compact street sweeper for stormwater ($0.13m). These are described in the attached Exhibit A showing a total of $2,265,923. The specific details on the expenditures being rolled over to FY 18 are found in Exhibit C. These details include vendor name, purchase order number, general ledger account, and a brief description of the service or item procured. Outside contingency funding for capital projects are also identified by project.
Miscellaneous Adjustments: Some minor amendments to the FY 18 budget are also recommended at this time as shown in Exhibit B. The adjustments include:
- an amendment to recognize additional revenue from Florida Department of Transportation (FDOT) for street lighting maintenance, an increase of $34,531 from the old contract;
- an amendment to recognize a private donation of $10,000 to the Parks and Recreation Division for use in after-school care program;
- an amendment to recognize a private donation of $2,400 to the Library for use in special events;
- an amendment to recognize $1,500 private contribution for the BSO Explorer Program for use in providing training to kids;
- an amendment to recognize to recognize $1,000 from prior year fund balance to be used for operating supplies in the Law Enforcement Trust Fund at the request of the District Chief for the purpose of facilitating coordination with the Wilton Manors Police Department..
In addition, the following proposed changes within Divisions in the General Funds are also included. This proposed changes do not increase or decrease the overall budget but simply re-appropriate expenditures between specific functional areas (personal services, operating, capital, etc.) to reflect past or anticipated expenditures.
- Within the Finance Department, some savings relating to staff vacancy and re-allocation of other items amounting to $40,000 are recommended to be moved to Professional Services to fund the anticipated professional services cost.
- Within the General Fund, adjustments to move $25,000 from Building Maintenance Division’s capital outlay account and $35,000 from Non-Departmental Division’s Other Uses account or a total of $60,000 into Building Maintenance Division’s repairs and maintenance account to provide additional funding.
- Within the Information Technology Services Division, adjustment to move some budgeted amounts from different expenditure categories totaling $8,000 into the overtime account. This is to reflect potential overtime needed in response to disaster events and to provide funding ITS technical support during bi-monthly Commission meetings.
- Within the Solid waste fund, the savings from the deferral of purchase of a solid waste equipment estimated to be $285,000 is recommended to be moved to the Division’s Other Services account to cover for the unbudgeted expenditures related to Hurricane Irma. Also, the use of contingency funds of $65,000 and re-allocation of other items totaling $14,500 within the Solid Waste Division is also recommended to cover for staff overtime cost incurred during the storm and to provide funding for future use during the rest of the year, are recommended.
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| | | | | | | | | 3. | FINANCIAL IMPACT
| | | With the adoption of the recommended budget amendments, the citywide budget will increase from $105,878,705 to $108,194,059. The breakdown by fund is provided below:
| Fund |
Current Budget |
Proposed Change |
Revised Budget |
| General Fund |
54,754,106 |
408,913 |
55,163,019 |
| CRA |
759,047 |
30,699 |
789,746 |
| GF CIP |
6,650,298 |
673,828 |
7,324,126 |
| Water-Sewer |
31,006,571 |
302,308 |
31,308,879 |
| Solid Waste |
6,176,841 |
548,238 |
6,725,079 |
| Stormwater |
4,937,288 |
346,468 |
5,283,756 |
| Debt Service |
1,544,554 |
- |
1,544,554 |
| Other Misc. |
50,000 |
4,900 |
89,431 |
| Total |
105,878,705 |
2,315,354 |
108,194,059 |
The proposed budget amendments for adoption are presented as Exhibits A and B. Additional details are found in Exhibit C, providing a listing of rollovers and adjustments including specific details on individual purchase orders being rolled over into FY 18. |
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| | | | | | | | | 4. | RECOMMENDATION
| | | Staff recommends the Commission adopt a resolution approving the amendments to the FY 2018 budget as shown in Exhibits A and B. |
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