Agenda Date: 12/16/2014
Subject:
Title
Ordinance on second reading amending Ordinance No. 28 Series of 2013 known as the Annual Appropriation Bill for all municipal purposes for the fiscal year beginning January 1, 2014 and ending December 31, 2014.
Body
Presented By: |
Doug Farmen, Finance Director |
POLICY QUESTION:
Does city council support an amendment to the 2014 annual appropriation for the City of Littleton?
BACKGROUND:
The following funds are recommended to be increased:
General Fund - $700,000
It is city policy to transfer an amount above the 17% estimated annual operating fund balance reserve amount to the Capital Projects Fund. This is a budgeted amount for the interfund transfer; the actual amount will not be known until May 31, 2015 when the annual audit is completed.
Impact Fee Funds - $6,000
In 2014, a project was completed to update the impact fee study. The total costs to perform the study were under $6,000 and allocated to the six impact fee funds.
Public Facilities Fund - $196,000
The library chiller project was budgeted in 2013 for $109,000 in the Conservation Trust Fund. Competitive bids were much higher than the original budget so this project was deferred. The chiller failed in the summer of 2014 and replacement is now necessary. The dry cooler is over 30 years old. Staff is recommending the $196,000 appropriation to fund the chiller replacement and several small projects. Staff's recommendation during the 2015 budget meetings was to utilize this fund as a primary source for city capital needs.
Consolidated Special Revenue Fund - $110,000
This request is for additional funds for wildland fires such as overtime, vehicle maintenance, and supplies expended during the year that will be fully reimbursable to the city via intergovernmental agreements.
Employee Health Insurance Fund - $340,000
Workers compensation and health claims are major components of this fund. The city experienced a $50,000 higher volume of workers compensation claims than anticipated. The 2014 health claims are trending at $5,550,000 which is slightly below the $5.615 million annual budget. Toward the end of the year, however, participants tend to utilize more medical services so staff is requesting $200,000 to cover these anticipated uses (3.6% contingency). There is an additional $90,000 requested to cover unemployment claims and unanticipated life insurance and disability premium increases.
Fleet Maintenance Fund - $1,160,000
This fund is proposed to be eliminated saving staff time in accounting and allocating vehicle costs to each city division (fleet will continue internally accounting for vehicle costs). The fire department vehicle costs will still be allocated per the fire services contract. The full amount of residual fund balance as of 12/31/14, will be transferred into the Capital Projects Fund and will provide funding for future vehicle replacement costs.
Property & Liability Insurance Fund - $420,000
The city is self-funded for property and liability claims; the 2014 claims are higher than anticipated due to the hail storm that occurred last summer. The city replaced and repaired vehicles and facilities, receiving reimbursement from the insurance carrier. The City of Littleton's net liability was limited to a $5,000 deductible.
STAFF ANALYSIS:
Amending the annual appropriation bill is a typical process that the city conducts every year.
FISCAL IMPACTS:
The 2014 budget appropriation is recommended to increase by $2,932,000.
STAFF RECOMMENDATION:
Staff recommends approval of the ordinance on first reading amending the 2014 budget.
PROPOSED MOTION:
Proposed Motion
I move to approve on second reading the ordinance amending Ordinance No. 28 Series of 2013 known as the Annual Appropriation Bill for all municipal purposes for the fiscal year beginning January 1, 2014 and ending December 31, 2014.