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Ordinance 04-22 To: Members of Dublin City Council From: Dana L. McDaniel, City Manager Date: March 1, 2022 Initiated By: Matthew L. Stiffler, Director of Finance Melody Kennedy, Budget Manager Re: Ordinance No. 04-22 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2022 (Q1) Summary Ordinance 04-22 amends the annual appropriations for the fiscal year ending December 31, 2022 to provide supplemental funding in certain budget accounts for the first quarter of 2022. The following sections provide descriptions of the appropriations contained within each section of the Ordinance, and the reason for the request. Many of the appropriations requested below are for financial housekeeping, or re-appropriation of unused proceeds for debt financed or capital projects. At year-end, all these proceeds were unencumbered as required by the Ohio Revised Code. These requests reflect the mechanics of re- appropriating the funds again for use in 2022. Sections 1 and 3 request the movement of funding in the General Fund and the Recreation Services Funds for reclassification of personnel costs to their appropriate line item accounts. These are housekeeping budget adjustments and have a net neutral financial impact on the operating budget. Initiating Department: Department of Finance (Sections 1 and 3) Section 2 requests a $200,000 transfer from the General Fund to the Workers’ Compensation Fund to bolster the Fund balance in order to cover anticipated costs due to higher Workers’ Compensation claims. An additional $80,000 in the Workers Compensation Fund is requested for expenditure. Per the City’s Risk Manager, the additional appropriations are needed due to three significant workers’ compensation claims filed between December 2021 and January 2022. The City is expecting to incur higher than anticipated medical/dental/prescription costs in the first quarter of 2022. Initiating Department: Finance and Human Resources – Risk Management (Section 2) Section 4 requests funding appropriations in the amount of $150,000 in the Hotel/Motel Tax Fund for the Art in Public Places (AiPP) program. This is an all-inclusive commission to create public artwork to be sited in M.L. “Red” Trabue Nature Reserve. City Council authorized staff to enter into a contract with the selected artist, Ilan Averbuch for the artwork The Boat in the Field during the City Council meeting on January 24, 2022. Initiating Department: Parks and Recreation (Section 4) Section 5 requests funding appropriations for use of the $2,568,338.84 in funding subsidies received from the first tranche of the American Rescue Plan (ARP). Using the revenue replacement option available to local governments, the City will increase appropriations by approximately 2,568,338.84 in the City’s Local Fiscal Recovery Fund for the purpose of public safety expenditures. Public Safety expenditures in the Safety Fund for salaries and benefits will subsequently be reduced via a reduction in Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017-1090 Phone: 614.410.4400 • Fax: 614.410.4490 Memo Ordinance 04-22 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2022 Page | 2 appropriations, and the budgeted operating transfer from the General Fund to the Safety Fund will also be un-appropriated. These actions will result in approximately $2,568,338.84 in additional General Fund balance to be utilized for future City Council and Staff priorities. Staff and City Council priorities for the funds in the General Fund made available through the utilization of ARP funds for public safety will be presented and discussed during City Council’s Retreat on March 17th and 18th. Once those priorities are identified, additional appropriations can be requested in the Q2 supplemental appropriation ordinance for General Fund expenditures. The second tranche of the ARP funds are anticipated between June and September 2022. The same appropriation language will be included in the Q3 supplemental appropriations ordinance. In total, the City is expected to receive $5,136,677.68 in American Rescue Plan funding during 2022. Initiating Department: Department of Finance (Section 5) Section 6 requests $1,000,000 in funding appropriation in the Capital Improvements Tax Fund for the Riverside Drive Shared-Use Path (SUP), section 1 project. This SUP is situated along the east side of Riverside Drive between Emerald Parkway and Hard Road. This project was appropriated funding in 2021 in the 2021-2025 Capital Improvements Program (CIP). The funding was requested to be allocated in 2022 from these prior year un-spent appropriations. Negotiations for easement acquisitions has caused a delay in the start of project construction. The last of the twelve easement acquisitions is underway, and construction bidding is planned for late spring 2022. Section 7 requests $715,000 in funding appropriations for projects in the Capital Improvements Tax Fund. • $540,000 is requested for the design of the Bright Road Corridor. This includes preliminary engineering and detailed design for improvements along Bright Road between Emerald Parkway and Sawmill Road. Right-of-way plans, legal descriptions and exhibits will also be prepared. Proposed improvements are based on recommendations from the Sawmill Road Corridor Study performed by Jacobs Engineering in 2019. Construction plans are scheduled for completion in June 2023. • $175,000 is requested in additional funding appropriation for the design and construction of the Dublin Community Recreation Center (DCRC) Mobility Hub. The 2022-2026 Capital Improvements Program included funding for the design of the project in 2022, and construction in 2023. Upon receiving the $20,000 grant award from AARP Ohio, the DCRC mobility hub needed to be prioritized for design and construction in 2022. During its February 16, 2022 meeting, the Public Services Committee recommended the additional funding be requested from City Council for construction as it provides for completion of the project. The Mobility Hub project includes concrete work and other site improvements, such as solar power and wayfinding signs, construction of canopies, bike racks, and CoGo Bike Share Station, and is consistent with discussions held with the Planning and Zoning Commission, and the Public Services Committee. The total cost of the project is programmed to be approximately $425,000. Ordinance 04-22 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2022 Page | 3 Section 8 requests an additional $1,000,000 for advance from the Capital Improvements Tax Fund to the West Innovation TIF Fund for the upgrade of the US 33/SR 161/Eiterman Road Interchange. The request also includes an appropriation for expenditure from the West Innovation TIF Fund for the infrastructure project. The project provides for ramp realignment, structure replacement, reconstruction and widening of SR 161, modification of the SR 161/Eiterman Road roundabout, and reconstruction of the Post Road/Hyland-Croy Road intersection. Utility coordination for this project is on-going and construction sale is planned for spring 2022. Initiating Department: Public Works - Engineering (Sections 6, 7, and 8) Section 9 requests re-appropriation of debt funding in the Capital Construction Fund for Engineering and Park projects where funding appropriated for 2021 was not spent or encumbered. $2,098,900 was carried-over from the prior year in un-spent appropriations for various public infrastructure projects as all appropriations funded by debt proceeds that were not encumbered expired at year-end. These re- appropriations will allow these projects to continue construction in 2022. Section 10 requests funding authorization to move $800,000 originally appropriated in the Thomas/Kohler Fund for repayment of advances, to the transfer line item in the same Fund. There is no net increase, just a movement in the line item accounts. This change has been recommended by the Auditor of State’s Office as the best practice for repayment of funds to the Capital Improvements Tax Fund for debt service payments made. The Capital Improvements Tax Fund is being repaid by the TIF for funding the debt associated with the Woerner-Temple Road extension. The annual repayments are scheduled to extend through 2023. Initiating Department: Department of Finance (Sections 9 and 10) Section 11 requests funding re-appropriation in the amount of $1,815,500 for the Corners Park and Public Infrastructure per Ordinance No. 67-19. In 2021, $1,825,000 was encumbered for the City’s share of the project. The requested re-appropriation is available in the Fund from prior year un-spent appropriations for this public infrastructure project. Initially the City planned to pay only its portion from the TIF Fund. After review, it was determined that the best course of action was to pay all project costs from the City’s accounts and the Developer’s contribution was deposited into the TIF Fund. This re- appropriation will allow the City to utilize that contribution toward this project in 2022. The project’s budget is not increased as a result of this appropriation. Section 12 requests funding appropriation of $2,725,000 in the Water Fund for advance to the Water Construction Fund for debt-funding projects as previously approved by City Council in the 2022-2026 Capital Improvements Program. The advance of funding will allow the projects to get underway ahead of the receipt of bond proceeds. Accordingly, a funding appropriation request of $1,130,000 is requested for water extension projects not previously appropriated in the Water Construction Fund. Lastly, an appropriation for an advance-out of the Water Construction Fund of $2,725,000 will provide repayment to the Water Fund once debt proceeds are received. Initiating Department: Department of Finance, and Public Works - Engineering (Sections 11 and 12) Section 13 requests funding for an appropriation for the 2021 Riverside Crossing Park project for advance repayments. During 2021, $5.7 million was authorized for advance for the current phase of the Riverside Crossing Park construction project in Ordinance No. 24-21. The advance was made from the General Fund to the Bridge Street Fund. The contract for construction with Turner Construction Company is expensed from the Capital Construction Fund. When the bonds proceeds for the project are received Ordinance 04-22 – Amending the Annual Appropriations for Fiscal Year Ending December 31, 2022 Page | 4 they will be deposited into the Capital Construction Fund. These appropriations will allow for the repayment of the prior advances with the bond proceeds and finalize the debt financing related to this project. Initiating Department: Department of Finance (Section 13) Recommendation Staff recommends City Council approval of Ordinance 04-22, amending the Annual Appropriations for the Fiscal Year Ending December 31, 2022, at the second reading and public hearing of the Ordinance on March 21, 2022.