AGENDA #4c

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Year-End Budget Amendment for 2002-2003

 

DATE:             June 23, 2003

 

 

The attached year-end budget amendments primarily reflects technical accounting and budget adjustments or transfers for the General Fund that do not affect the overall current revenue and expenditure estimates for the funds as presented in the Manager's Recommended Budget for 2003-2004.  The amendment this year reflects significant additional expenditures of about $1,276,000 in the General and Transportation Funds in the current year related to the December ice storm that will be offset by anticipated federal and State reimbursement funds of $1,276,000. 

 

Below is a brief description of this item and other technical adjustments by fund.

 

General Fund

 

In the General Fund, the attached amendment would:

 

·        Increase appropriations in various General Fund departments by $1,274,800 to reflect the additional expenditures related to the December ice-storm.  These expenditures will be offset by anticipated federal and State reimbursement funds in the same amount.

 

·        Formally appropriate $200,000 for consultants to continue the second phase of the stormwater utility program authorized by the Council earlier this year.  Funding for this second phase would come from the additional State-shared revenues received in the current year as previously recommended to the Council.

 

·        Formally allocate $170,000 as previously recommended to the Council from additional State-share revenue received this year to replace funds used from the debt service reserve last year to help balance last year’s budget.

 

·        Increase budgeted appropriations in the Police Department by $129,325 for various grants including Project Turn Around and Governor’s Crime Commission Grants, and other Block grant funds not fully expended from the prior year.  The expenditures will be offset by $110,809 in grant revenue and $18,516 in fund balance required for the Town’ local match for these grants.

 

·        Transfer $15,000 originally budgeted in the Police and Fire Department budgets for a half- time safety coordinator position to the Human Resources Department budget to accommodate funding for the safety function and duties now assigned to the Human Resources Department.  This organizational change was discussed with the Council during budget deliberations earlier this year.

 

·        Increase appropriations in the Finance Department by $21,000 to reflect additional expenditures for the tax collection contract with Orange County ($14,000) and for an increase in net banking costs this year ($7,000) as previously discussed by the Council during departmental budget presentations in February.  The additional costs would be funded from additional property tax revenue estimated for the current year.

 

·        Reduce the General Fund Library appropriations by $20,000 to delete a Library Technical Services Grant for the building program consultant that was inappropriately budgeted in the General Fund.  The grant should have been included in the Library Gift Fund budget and funded from library gift funds.  The attached ordinance would transfer this $20,000 grant to the Library Gift Fund budget.

 

Library Gift Fund

 

·        Transfer a grant of $20,000 for the building program consultant from the General Fund to the Library Gift Fund as noted above.

 

·        Transfer funding of $383,450 from the Library Gift Fund to the Multi-Year Capital Project Fund to be combined with estimated future Library donations of $175,000 to provide total funding of $558,450 for the Library Technology Plan adopted earlier this year by the Council.   Establishment of this project within the Multi-Year Fund would allow this funding to be spent over the next two years for the Library Technology Plan.

 

Capital Improvements Fund and Multi-Year Capital Project Fund

 

• Reappropriate $200,000 received last year from the developer for Meadowmont to pay the Town’s current year contractual obligation of $238,000 to the Chapel Hill-Carrboro School system for use of the Meadowmont gym in accord with terms of the contract.  (The remaining $38,000 was included in the original Capital Improvements Fund budget).

 

• Increase appropriations by $200,422 to reflect the cost of the new stormwater aerial photography project being coordinated by the Town on behalf of the Town, the University, OWASA, and the Town of Carrboro.  This expense will be offset by total payments of $200,422 from the University, OWASA and the Town of Carrboro for their proportional share of the project costs.  (The Town’s share of this project totaling $49,505 is already included in the current year’s amended Capital Improvements Fund budget).

 

• Transfer $7,000 allocated for the Percent for Art program in the current year’s Capital Improvements Fund budget to the Multi-Year Capital Project Fund to comply with requirements of the ordinance establishing the Percent for Art Program.

 

• Establish a project account within the Multi-Year Capital Project Fund to account for estimated annual rental revenue of $10,500 from the Carolina Sports Art building that would be dedicated for annual capital improvements to this facility.

 

• Appropriate $$35,000 from remaining fund balance in the Capital Improvements Fund to supplement existing funding of about $70,000 allocated for the Burning Tree Drive drainage improvement project approved by the Council earlier this year.

 

• Accept an Adopt-A-Trail grant for the Dry Creek Trail project in the amount of $4,630 and increase the project account in the Multi-Year Capital Improvement Fund for this grant.

 

Vehicle Replacement Fund

 

• Reappropriate $538,000 in unspent funds from last year for vehicle replacement purchases that had not been completed by year-end, including the replacement of a fire truck.   The vehicle replacement program purchases were delayed last year due to budget changes made last year to accommodate the significant shortfall in State-shared revenues. 

 

Downtown Services District Fund

 

• Reappropriate $18,000 for a contract authorized by the Council last fiscal year for a marketing study in the downtown area.  The study was not completed until the current fiscal year and funding now needs to be carried forward from last year.

 

Transportation Fund

 

• Increase appropriations by 1,600 for expenditures related to the December ice storm to be offset by federal and State reimbursement funds.

 

RECOMMENDATION

That the Council enact the attached year-end budget amendment for 2003-2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2001 (2003-06-23/O-1)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2002” as duly adopted on July 26, 2002, be and the same is hereby amended as follows:

 

ARTICLE I
APPROPRIATIONS	Current Budget	Increase	Decrease	Revised Budget
GENERAL FUND
Public Works	9,841,262	1,229,600		11,070,862
Town Manager	967,690	800		968,490
Police	9,332,066	141,925	7,500	9,446,491
Fire	4,916,177	31,800	7,500	4,940,477
Engineering	1,087,545	200,000		1,287,545
Finance	888,372	21,000		909,372
Library	1,982,963		20,000	1,962,963
Human Resources	532,238	15,000		547,238
Non-Departmental
Transfer to Debt Service Fund	2,343,000	170,000		2,513,000
DEBT SERVICE FUND	2,343,000	170,000		2,513,000
VEHICLE MAINTENANCE  FUND	886,296	538,000		1,424,296
CAPITAL IMPROVEMENTS FUND	1,295,080	442,422		1,737,502
DOWNTOWN SERVICES DISTRICT FUND	70,000	18,000		88,000
LIBRARY GIFT FUND	106,000	403,450		509,450
TRANSPORTATION FUND	9,828,556	1,600		9,830,156

 

ARTICLE II
REVENUES	Current Budget	Increase	Decrease	Revised Budget
GENERAL FUND
Property Taxes	20,707,000	21,000		20,728,000
State-Shared Revenue	9,489,000	370,000		9,859.000
Grants	531,260	1,385,609	20,000	1,896,869
Fund Balance	1,779,238	18,516		1,797,754
DEBT SERVICE FUND	2,343,000	170,000		2,513,000
VEHICLE MAINTENANCE FUND
Fund Balance	17,412	538,000		555,412
CAPITAL IMPROVMENTS FUND	1,295,080	442,422		1,737,502
DOWNTOWN SERVICES DISTRICT FUND
Fund Balance	0	18,000		18,000
LIBRARY GIFT FUND	106,000	403,450		509,450
TRANSPORTATION FUND	9,828,556	1,600		9,830,156

 

Copies of this budget ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.

 

This the 23^rd day of June, 2003.

 

 

 

AN ORDINANCE TO AMEND THE CAPITAL PROJECTS ORDINANCE FOR VARIOUS CAPITAL PROJECTS (2003-06-23/O-2)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the capital projects ordinance for various capital projects funded from a variety of sources is hereby amended as follows:

 

SECTION I

 

The capital projects as authorized by the Town Council includes various capital projects funded from grants, the Capital Improvements Program funds, and other miscellaneous sources of revenue for a variety of projects extending beyond one fiscal year.

 

SECTION II

 

The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.

 

SECTION III

 

Revenues anticipated to be available to the Town to complete the project are amended as follows:

 

                                                                        Current Budget Revised Budget

 

         Adopt-A-Trail Grant                                                        35,000                         39,630

         Clean Water Management Grant                                     200,000                       200,000

         Chapel Hill-Carrboro School                                          148,059                       148,059

         Metropolitan Planning Grant                                              79,000                         79,000

         State Bicycle/Pedestrian Grant                                        300,000                       300,000

         Pritchard Park Gift                                                          100,193                       100,193

         Pritchard Park Interest & Rental Income                           63,807                         63,807

         Donations                                                                           2,000                           2,000

         Orange County Bond Funds                                           205,000                       205,000

         Transfer from CIP Fund                                                  416,549                       423,549

         Transfer from General Fund                                              59,000                         59,000

         Transfer from Library Gift Fund                                                 0                       383,450

         Interest Earnings                                                               88,156                         88,156

         N.C. Transportation Grant                                              212,865                       212,865

         OWASA Reimbursement                                                 42,931                         42,931

         Pedestrian Signal Reimbursement                                        5,000                           5,000

         N. C. DOT Grant                                                           207,500                       207,500

         Installment Purchase Proceeds                                     1,200,000                    1,200,000

         Library Gifts and Donations                                                       0                       175,000

         Other                                                                                        0                         10,500

        

 

         Total                                                                           3,382,935                    3,928,515

 

SECTION IV

 

Amounts appropriated for capital projects are hereby amended as follows:

 

                                                                        Current Budget Revised Budget

 

         Booker Creek Linear Park                                               20,000                         20,000

         Dry Creek Trail                                                              270,800                       275,430

         Lower Booker Creek Trail                                             721,749                       721,749

         Pritchard Park                                                                164,000                       164,000

         Southern Community Park                                              205,000                       205,000

         Willow Drive Bridge                                                       343,952                       343,952

         Hargraves                                                                         50,000                         50,000

         Scroggs School Athletic Fields                                        148,059                       148,059

         N. C. 54/Hamiliton Improvements                                   170,000                       170,000

         Morgan Creek Trail                                                          89,375                         89,375

         Hargraves Renovations                                                1,200,000                    1,200,000

         Percent for Art Program                                                            0                           7,000

         Carolina Sports Art Building                                                      0                         10,500

         Library Technology Plan                                                            0                       558,450

 

         Total                                                                           3,382,935                    3,928,515

 

SECTION V

 

The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.

 

SECTION VI

 

Copies of this projects ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.

 

This the 23^rd day of June, 2003.