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HomeMy WebLinkAboutOrdinance 36-24RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S Ordinance No. 36-24 Passed AMENDING THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2024 WHEREAS, the Ohio Revised Code requires, when necessary, amendments to the annual appropriations ordinance be made in order that appropriations are not over expended; and WHEREAS, it is necessary to amend the annual appropriations ordinance to provide funding in certain budget accounts; and WHEREAS, at the beginning of each year, it is necessary to appropriate unencumbered balances in various funds to authorize those funds for debt payments, project-related expenditures and other miscellaneous expenses; and WHEREAS, if any funding is appropriated herein to provide for transfers or advances for debt service, the debt transfer is also authorized as a part of this ordinance. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, _.5 _ of the elected members concurring, that: Section 1. There shall be appropriated from the unappropriated fund balance of the Hotel Motel Tax Fund $268,000. Finance Administration 23240210-713005 Misc. Contract Services $ 175,000 Events 23240450-713004 Other Professional Services $ 93,000 Section 2. There shall be appropriated from the unappropriated balance of the General Fund $130,000: Human Resources 10110120-713004 Other Professional Services $ 80,000 10110120-714001 Insurance and Bonding $ 50,000 Section 3. There shall be appropriated in the unappropriated balance from multiple funds the total amount of $900,000 to support the City’s financing plan of certain property purchases. General Fund 10140425-713004 Other Professional Services $ 400,000 Water 61096290-741404 Transfer Expense $ 500,000 Section 4. There shall be appropriated from the unappropriated balance of the Thomas Kohler TIF Fund: Transportation & Mobility 41980750-713004 Other Professional Services $ 40,000 RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S Ordinance No. _36-24 Passed Section 5. There shall be appropriated from the unappropriated balance of the Perimeter West TIF Fund: Transportation & Mobility 43180750-735004 New Street Construction $ 7,000 Section 6. There shall be appropriated from the unappropriated balance of the Special Assessment Debt Service Fund: Finance Miscellaneous 32090290-711001 County Auditor Deduction $ 1,000 Section 7. There shall be unappropriated from the Capital Improvements Construction Fund and General Fund: Finance Miscellaneous 40480320-735004 Capital Improvements $ (7,600,000) 10197290-742404 Advances $ (7,600,000) Section 8. This ordinance shall take effect and be in force in accordance with Section 4.04(a) of the Dublin Revised Charter. Passed this [ ( day of 2024. Mayor — Presiding Officer Pad (1s Clef Coungt To: Members of Dublin City Council From: Megan D. O’Callaghan, P.E., City Manager Date: September 10, 2024 Initiated By: Matthew L. Stiffler, Chief Financial Officer/Director of Finance Jaime L. Hoffman, Director of Finance Operations Jennifer Miglietti, Director of Human Resources Ron Whittington, Risk Manager/Safety Administrator Meghan J. Murray, Budget Manager Re: Ordinance No. 36-24 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2024 (Q3) Summary This Ordinance amends the annual appropriations for the fiscal year ending December 31, 2024, to provide supplemental funding in specific budget accounts. The following discussion details the appropriations within each section of the Ordinance and the justification for these requests. Follow Up Information At the first hearing of this ordinance on September 9, 2024 additional information regarding Central Ohio Risk Management Association (CORMA) was requested. In response to this inquiry, staff are providing the following information. CORMA is a joint self-insurance pool established under Chapter 2744 of the Ohio Revised Code. The City of Dublin has been a member since CORMA's inception in 1997. Unlike traditional insurance, CORMA operates on a risk-sharing model where members collectively fund expected losses annually, purchase excess insurance coverage, and jointly own the pool. Over the past 27 years, CORMA has provided cost- effective property and liability insurance services to its members, which now include the cities of Dublin, Westerville, Upper Arlington, Powell, Grove City, Canal Winchester, Pickerington, Grandview Heights, Groveport, Gahanna, and Hilliard. The CORMA members share a common form of government, a commitment to sound risk management practices, financially stable communities, and highly professional elected and appointed officials. Following a periodic Request for Proposal process in early 2024, the CORMA Board renewed its contract with Wichert Insurance, a leading provider of insurance and risk management solutions for Ohio public entities, to continue providing Pool Administration and Claims Administration services. Section 1 requests $268,000 in appropriations from the unencumbered fund balance of the Hotel Motel Tax Fund for the following: •$175,000 for Muirfield Art in Public Places (AiPP). As discussed during the September 26, 2022, Council meeting, the City will appropriate the full $175,000 for the Muirfield AiPP project and upon the project's completion will seek reimbursement from the State. •$53,000 for the Community Events Roadmap Project. At the June 17, 2024, City Council meeting, Council supported entering contract negotiations with Yard & Company for the Community Events Roadmap Project with funding to be covered by current Hotel/Motel Tax Fund appropriations until a new appropriation is approved in the Q3 Supplemental. The contract was executed in June and work on the project is progressing. Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017-1090 Phone: 614.410.4400 • Fax: 614.410.4490 Memo Ordinance 36-24 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2024 September 10, 2024 Page | 2 • $40,000 for the Holiday Market Feasibility Study. At the July 1, 2024 City Council meeting, Council supported entering into contract negotiations with Town Square for the Holiday Market Feasibility Study with funding to be covered by current Hotel/Motel Tax Fund appropriations until a new appropriation is brought in the Q3 Supplemental. The contract was executed in July and work on the project is progressing. Section 2 requests $130,000 in appropriations from the unencumbered fund balance of the General Fund for the following: • $80,000 to cover the projected cost of executive search firms that the City is utilizing for candidate searches. In the 2024 budget, there were two searches budgeted, which have been utilized for the Director of Information Technology and the Chief Innovation and Technology Officer. Additional funds in 2024 are needed for the recruitment of the Deputy Chief of Police, Deputy City Manager and Director of Engineering. • $50,000 to cover the projected increase in property and casualty insurance premiums set by the Central Ohio Risk Management Association’s (CORMA) insurance broker and pool administrator. The renewal date for the City’s property and casualty insurance policy is October 1, 2024, and the actual premium will not be known until mid-September. On Friday, August 1, 2024, the City was informed that CNA Insurance has opted not to renew the property insurance program for the CORMA Pool, effective October 1, 2024. Last year, both Travelers and RSUI provided program options and are considered the most likely replacements for CNA. However, it is anticipated that their property rates will be 15%-20% higher than those previously offered by CNA. The need for this increase is primarily due to higher than anticipated property premiums resulting from the hardening of the property insurance market nationwide and carriers not willing to take on larger exposures. Additionally, new property acquisitions and increased building values, as indicated by a city-wide property appraisal conducted in early 2024, have further contributed to the anticipated premium rise. This request is to ensure uninterrupted insurance coverage for the City’s property and casualty program for the policy period of October 1st, 2024, through September 30, 2025. Section 3 requests appropriations from various funds for the acquisition and operation of SportsOhio and related expenses. • $400,000 in appropriations from the unencumbered fund balance of the General Fund for operating expenses associated with the management and operations of SportsOhio for the remainder of the 2024 calendar year. This request will be offset in part or in whole by operating revenues generated by the facility and deposited into the General Fund. This request is necessary to begin operating the facility in September, but additional appropriations may be needed in the December supplemental appropriations ordinance as programming levels and operating costs are determined and operations continue. This appropriation is necessary to demonstrate that the City maintains sufficient budgetary control and supports a financial framework that allows for accurate tracking of the facility’s financial operations. The appropriations will support the implementation of the management agreement for SportsOhio. • $500,000 in appropriations from the unencumbered fund balance of the Water Fund for the issuance of Manuscript Debt associated with the property’s acquisition. Ordinance 16-24 included appropriations for transfers from the Water Fund of $10.5 million and $4.6 million from the Sewer Ordinance 36-24 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2024 September 10, 2024 Page | 3 Fund. These appropriations were sufficient to support the property’s acquisition cost of $15.1 million. However, Ordinance 17-24 allowed for the issuance of up to $15.255 million to include the property acquisition and bond issuance costs. After evaluating, the revenues, expenditures and fund balance of the Water and Sewer Funds, it was determined that manuscript debt of $11.0 million from the Water Fund and $4.255 million from the Sewer Fund would provide sufficient fund balance reserves in each respective enterprise fund for the next two years until the repayment of the manuscript debt begins. Section 4 requests $40,000 in appropriations from the unencumbered fund balance of the Thomas Kohler TIF Fund for the Avery Road Sidewalk Connections (MB23C01). This project was budgeted at $80,000 in the 2024-2025 CIP and the awarded contract was for $119,082. Section 5 requests $7,000 in appropriations from the unencumbered fund balance of the Perimeter West TIF Fund for the Avery-Muirfield and U.S. 33 WB Ramps/Dublin Methodist Lane Signal Improvements (ST24C01). This project was budgeted at $75,000 in the 2024-2025 CIP and the awarded contract was for $81,425. Section 6 requests $1,000 in appropriations from the unencumbered fund balance of the Special Assessment Debt Service Fund for the county auditor’s fees associated with the Ballantrae special assessment district. These fees were previously budgeted as part of this Fund but when the special assessment ended last year the budget for these fees was removed. Because property owners in the district were late or delinquent in their payments, when these payments were collected this year the county auditor charged the City a fee associated with their collection. The City receives off-setting revenue associated with the payment of these fees. For the next several years, these fees will be budgeted again in the operating budget to allow for the payment of these fees associated with delinquent property taxes in the district. Section 7 requests $7,600,000 to be unappropriated from the Capital Improvements Construction Fund and General Fund. The appropriations were made in Ordinance 3-24 for the Bright Road Corridor and Bright Road-Sawmill Road Intersection Improvements (ST23C02). The original appropriation allowed for the project to be cash financed until the issuance of bonds occured. In June bonds were issued for this project with Ordinance 19-24, therefore this funding appropriation is no longer needed. Recommendation Staff recommends City Council approval to amend the Annual Appropriations for the Fiscal Year Ending December 31, 2024, at the second reading and public hearing of the Ordinance on September 16, 2024.