M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, ICMA-CM, CFM, Town Manager
Date: October 28, 2020
Re: Fiscal Year 2019-20 Budget Amendment
REQUEST
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A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA, AMENDING RESOLUTION 19-74, WHICH ADOPTED THE BUDGET FOR THE 2019-20 FISCAL YEAR, BY REVISING THE 2019-20 OPERATING AND CAPITAL BUDGET AS OUTLINED IN EXHIBIT “A” ATTACHED HERETO; AUTHORIZING THE TOWN MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
State Statutes allow for amending the budget legally adopted by the Town Council up to sixty (60) days after the end of the Fiscal Year. This allows the Town Council to provide for items not anticipated (or not fully known) when the original budget was adopted. It also allows the Town Council to adjust balances between line items within departments, or to reallocate funds among departments based on circumstances that transpired during the Fiscal Year.
The Town requires such an amendment for the General Fund for the 2019-20 Fiscal Year which will need to be adopted within the “sixty (60) days after year end” time frame, primarily as a result of (1) costs and expenses incurred related to the COVID-19 pandemic, (2) revenue shortfalls resulting primarily from the COVID-19 pandemic, and (3) the exchange of the Town Hall properties for an approximate sixteen (16) acre parcel on Old Cutler Road, and (4) transfers-out to other funds due to the timing of project work for the Franjo Park restoration and completion of the LED Lighting Fund grant project.
Other budget amendments are also being proposed in funds other than the General Fund. These other funds are funded by dedicated revenue sources, such as grants and impact fees.
The following summarizes the proposed changes:
1. Transfer of additional Park Impact Fees from the Special Revenue Fund to the Capital Projects (Parks) Fund as work on the canoe/kayak launch progressed more than was anticipated when the Fiscal Year 2019-20 budget was adopted.
2. Transfers-in to the Capital Projects (Parks) Fund from the General Fund are being decreased as the construction portion of the Franjo Park restoration started late in the Fiscal Year due to COVID-19 delays and, as a result, the project did not progress as much as originally budgeted.
3. The Special Revenue - Transportation Fund is being amended to reflect completion of the Transportation Planning Organization (TPO) Grant in Fiscal Year 2019-20. When the Fiscal Year 2019-20 budget was adopted, this Grant was anticipated to be completed by September 30, 2019 and, therefore, was not included in the adopted budget. Additionally, the Fiscal Year 2019-20 originally adopted the Cutler Ridge Section 3 Project as a Special Revenue Project but should have been adopted as a Stormwater Project. The proposed amendment transfers this budget item to the Stormwater Utility Fund.
4. The Special Revenue - Safe Routes to School Fund is being amended to reflect completion of the Grant Project in Fiscal Year 2019-20 at amounts less than originally adopted. When this budget was adopted, it was anticipated that more project work would carryover from Fiscal Year 2018-19 than actually occurred.
5. The Special Revenue - Bike/Pedestrian Fund is proposed to be increased as work on this project progressed more than anticipated when the Fiscal Year 2019-20 budget was adopted.
6. The Special Revenue - Franjo Road JPA Fund was not contemplated when the Fiscal Year 2019-20 budget was adopted. This fund is proposed to be added as a budget amendment as the design phase commenced in late Fiscal Year 2020.
7. The Special Revenue - Lighting Fund is being amended to reflect completion of the Grant Project in Fiscal Year 2019-20. When the Fiscal Year 2019-20 budget was adopted, this Grant was anticipated to be completed by September 30, 2019 and, therefore, was not included in the adopted budget.
8. The Special Revenue - TCT STEM Fund is being amended as this activity was cancelled for the Summer of 2020 as a result of the COVID-19 pandemic and there was no corresponding grant activity.
9. The Special Revenue - CITT Fund is proposed to be amended primarily as a result of budgeted bus shelter design and construction not being performed in Fiscal Year 2019-20, as well as for changes in proposed transfers out to provide funding for eligible projects in other funds.
The proposed budget amendment is in balance.
RECOMMENDATION
Town Staff recommends the Town Council adopt the attached Resolution amending the Fiscal Year 2019-20 budget.