DATE: December 2, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mike Lowe, Comptroller
SUBJECT:
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PUBLIC HEARING: Consideration of Ordinance 2014-39, an Ordinance to Amend the FY2014-2015 Budget; (01/08/15 Finance, 01/13/15 BOMA 8-0) SECOND AND FINAL READING
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning budget amendments for the 2nd Quarter of Fiscal Year 2015.
Background
The State Comptroller has provided guidance that budget amendments are to be on the cash basis and occur within the fiscal year. In accordance with this guidance, amendments for the 2nd Quarter of fiscal year 2015 are as follows:
1. Additional $7,500 for reclassification of 3 Inspector II positions in BNS to Inspector III. Currently, there are three inspectors who are anticipated to pass the certification tests for 3 disciplines in the next few months. These three inspectors are allowed by the State to have a one year grace period before being required to attain certification. All three inspectors are performing inspections in all three disciplines until the one year grace period finishes. It is requested that 3 Inspector II positions are reclassified to 3 Inspector III positions in order to continue to provide the same level of service and to avoid sending multiple inspectors to one job on the same day.
2. Additional $50,000 for payroll upgrades in Finance. To provide for upgrades to the City's payroll system to ensure compatibility with the Human Resource Information System (HRIS) project, to add insurance reporting requirements required by the Affordable Care Act, and to implement potential changes in certain pay rate applications, an amount of $50,000 of software modules and programming may be necessary. This amendment is to allow for budget authorization to be in place in the event that specific payroll upgrades are identified by the City's I.T. Department or the Kronos implementation team.
3. New funding of $310,000 in Facilities Tax Fund for Sanitation to purchase mechanical cranes for the transfer station. As discussed at the Budget and Finance Committee on November 13, 2014, mechanical cranes are being requested to process volume at the Century Court transfer station. The total cost for the cranes is estimated at $310,000.
4. Additional funding of $4,055 in Facilities Tax Fund for Sanitation to purchase the 2nd of two pick-up truck bed inserts included in the approved budget. $47,500 was budgeted in Facilities Tax for Sanitation to purchase a new pick-up truck and 2 pick-up truck bed inserts (one of which is to be inserted into an existing pick-up truck). The quote for the new pick-up ($24,615) and one bed insert ($13,470) is $38,085. To purchase the second bed insert (anticipated to be $13,470 also), an amount of $4,055 additional funding is requested to provide for total funding of $51,555.
Financial Impact
The amendments, as proposed, would result in:
1. For amendments 1 and 2, there is no change in General Fund expenditures or fund balance as $57,500 is available to be reallocated from General Expenses-Contingency for items arising after passage of the budget to cover the position reclassifications and payroll upgrades. (The contingency was included in the original budget at $75,000).
2. For amendments 3 and 4, Facilities Tax expenditures will increase by $314,055. There is fund balance available in the Facilities Tax Fund to cover both the cranes and additional cost of the 2nd truck bed insert.
Options
1. Approve amendment(s) as proposed and forward to BOMA.
2. Make changes to the amendment(s) where desired and forward to BOMA.
Recommendation
Staff recommends approval of the amendments.
Recommendation
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Staff recommends approval of the Ordinance in order to move to the full Board of Mayor & Aldermen for adoption.