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HomeMy WebLinkAboutOrdinance 55-21 To: Members of Dublin City Council From: Dana L. McDaniel, City Manager Date: August 24, 2021 Initiated By: Matthew L. Stiffler, Director of Finance Rosa Ocheltree, Deputy Director of Finance Melody Kennedy, Budget Manager Re: Ordinance No. 55-21 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2021 (Q3) Background Ordinance 55-21 amends the annual appropriations for the fiscal year ending December 31, 2021 to provide supplemental funding in certain budget accounts for the third quarter of 2021. The following sections provide descriptions of the appropriations contained within each section of the Ordinance, and the reason for the request: Section 1 requests funding authorization of $62,000 in the General Fund, and $40,000 in the Recreation Services Fund. This additional funding is necessary for COVID-19 disinfectant spraying of City facilities, including the Dublin Community Recreation Center (DCRC). Contingency amounts were budgeted for COVID-19 sanitization, however the necessary extent of disinfectant spraying and sanitization has displaced funds that were originally designated for the custodial cleaning contract. Staff is requesting additional funding to recover the cost of what has been spent on disinfectant spraying to-date. COVID-19 costs are being monitored, and additional information and requests will be brought forward to City Council if needed prior to year-end. Initiating Department: Facilities Management (Section 1) Section 2 requests funding authorization of $65,000 in each of the following funds: the General Fund, the Water Fund, and the Sanitary Sewer Fund for Utility Locate Fees. The vendor used for locating services had two price increases during calendar year 2020. The first increase was a standard 3% increase at the beginning of the year. The second increase, however, was much more significant ranging from 33%-44% depending on the service. That increase became Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017-1090 Phone: 614-410-4400 • Fax: 614-410-4490 Memo Ordinance 55-21 – Third Quarter Supplemental August 24, 2021 Page 2 effective late in 2020. Therefore, those increases were not captured in the 2021 Operating Budget. Initiating Department: Engineering Services (Section 2) Section 3 requests funding authorization in the Hotel/Motel Tax Fund in the amount of $22,500. During the June 28, 2021 City Council meeting, Council approved allocating $22,500 to enable the Art in Public Places (AiPP) process to begin moving forward to commission artwork in 2021. The fiscal condition of the Hotel/Motel Tax Fund and any associated funding intended for this artwork will be closely monitored throughout the process. The artwork will be sited in M.L. Red Trabue Park. The new public artwork is anticipated to be installed and dedicated in the summer of 2023. Initiating Department: Parks & Recreation Services (Sections 3) Section 4 requests appropriation of funding in the total amount of $9,300 for investment fees in the Capital Improvements Construction Fund, and the Sewer Construction Fund. This interest revenue and corresponding fees were generated from the debt issuance for Riverside Crossing Park, the North Pool and various sanitary sewer projects. All fees are off-set by interest earnings. Section 5 requests funding appropriation authority in the Bridge Park Block A TIF Fund (Ordinance No. 14-16) in the amount of $457,100 for contractual obligations as specified in the Bridge Park Development Agreement. The service payment revenue is distributed according to the development agreement. These service payments will be used to pay-off the debt service. As City Council will recall, this revenue funds public roadway improvements, parking garages and community facilities. The City budgeted an estimate for this disbursement in the 2021 Operating Budget. However, circumstances arose causing the remittance amount from the County to be higher than estimated; the City received two extra payments for one parcel in Block A that had underpaid in 2020; another parcel increased in value by 271%, and another parcel increased by more than 20%. All of these factors contributed to the increase in revenue (and off-setting contractual obligation) for this Fund. Section 6 requests funding appropriation authority for Franklin County Auditor’s Deductions (fees) for Funds as listed in section 7 of the corresponding Ordinance. This request will cover the fees collected by the County Auditor to cover their administrative costs in distributing the City’s real estate tax appropriation sheet. In several cases, the increase in County Auditor deductions was related to the property owner remitting their real estate tax payments past the Auditor’s due date. In the case of Riviera TIF Fund, the Auditor deductions hadn’t been budgeted since service payment distribution was not guaranteed during 2021. In the remaining Funds, the service payments were higher than anticipated causing the related Auditor deductions to exceed the budgeted amounts. Initiating Department: Department of Finance (Sections 4, 5, and 6) Recommendation Staff recommends City Council approval of Ordinance 55-21, amending the Annual Appropriations for the Fiscal Year Ending December 31, 2021, at the second reading and public hearing of the Ordinance on September 13, 2021. (4)(1)(1)(2)(2)(3) Ord. Section Q3 Fund Fund Description Beginning Cash Balance as of 1/1/2021 Supplemental Appropriations Request (Q1) Supplemental Appropriations Request (Q2) Supplemental Appropriations Request (Q3) Increases/ Reduction of Budgeted Appropriations Budgeted Appropriations Encumbrances as of 1/1/2021 Budgeted Revenues Increases/ Reduction of Budgeted Revenues Ending Cash Balance After Supplemental Appropriations at 12/31/2021 1,2 101 General Fund $71,311,738 $340,000 $6,058,480 $127,000 $9,987,000 $89,236,295 $3,287,680 $73,677,580 $2,866,082 $38,818,945 1 225 Recreation Services $2,906,090 $0 $0 $40,000 $0 $8,157,005 $429,720 $8,004,775 $0 $2,284,141 3 232 Hotel/Motel Tax Fund $2,944,823 $0 $116,000 $22,500 $0 $4,965,293 $84,626 $4,811,500 $0 $2,567,903 6 320 Special Assessment Debt Service $10,386 $0 $0 $100 $0 $0 $0 $0 $0 $10,286 4 404 Capital Improvements Construction Fund $11,621,615 $1,782,549 $0 $6,000 $0 $5,700,000 $9,339,745 $5,900,000 $0 $693,321 6 412 Woerner-Temple TIF Fund $9,305 $0 $0 $7,050 $0 $172,000 $0 $170,700 $0 $955 6 425 Perimeter Center TIF Fund $5,381,860 $950,000 $0 $200 $0 $3,106,200 $0 $505,000 $0 $1,830,460 6 433 Rings/Frantz TIF Fund $2,703,761 $125,000 $0 $500 $0 $855,000 $233,918 $400,000 $0 $1,889,343 6 444 Shamrock Blvd TIF Fund $117,830 $0 $0 $125 $0 $50,750 $0 $50,000 $0 $116,955 6 446 River Ridge TIF Fund $865,984 $0 $0 $125 $0 $136,550 $0 $96,000 $0 $825,309 6 447 Lifetime Fitness TIF Fund $531,981 $0 $0 $100 $0 $1,750 $0 $134,700 $0 $664,831 6 450 Shier Rings TIF Fund $9,639 $0 $0 $400 $0 $250 $0 $7,000 $0 $15,989 6 453 Dublin Methodist Hospital TIF Fund $826,780 $0 $0 $250 $0 $3,100 $0 $250,000 $0 $1,073,430 6 454 Kroger Center TIF Fund $308,095 $0 $0 $800 $0 $4,000 $0 $242,000 $0 $545,295 6 459 West Innovation TIF Fund $1,941,605 $0 $0 $1,000 $0 $1,752,000 $0 $575,000 $0 $763,605 6 465 Riviera TIF Fund $196,368 $0 $0 $38,000 $0 $0 $0 $200,000 $0 $358,368 5 469 Bridge Park Block A TIF Fund $0 $0 $0 $457,100 $0 $600,000 $0 $600,000 $457,100 $0 2 610 Water Fund $12,404,681 $0 $0 $65,000 $0 $1,641,555 $444,603 $1,177,500 $0 $11,431,023 2 620 Sewer Fund $6,286,322 $0 $0 $65,000 $0 $3,782,145 $736,660 $2,860,000 $0 $4,562,517 4 623 Sewer Construction Fund $4,162,597 $0 $0 $3,300 $0 $5,440,000 $215,088 $1,865,000 $0 $369,209 6 805 Agency Fund $252,963 $0 $0 $10,000 $0 $2,897,100 $0 $2,919,200 $0 $265,063 Total Supplemental Appropriations Requested $844,550 (3) - Estimates ending cash balance without further adjustments in expenditures or revenues for 2021. (4) - Ordinance 54-20 Riverview Street property acquisition, and Ordinance 25-21 for debt service. City of Dublin, Ohio Exhibit A NOTES: (1) - Assumes all budgeted appropriations/encumbrances for 2021 are expended. (2) - Assumes revision in budgeted revenues (County Certificate filed for changes in resources).