Mayor and Council



   For the meeting on:

  November 19, 2012
   Department:   Finance
   Responsible staff:  Stacey Webster, Budget and Finance Manager
  phone: (240) 314 - 8407
  SWebster@rockvillemd.gov


Subject
Introduction and Adoption of an Ordinance to Amend Ordinance #09-12 To Appropriate Funds and Levy Taxes for Fiscal Year 2013

Recommendation
Staff recommends that the Mayor and Council introduce and adopt the attached ordinance to amend Ordinance #09-12 to appropriate funds and levy taxes for Fiscal Year 2013.

If the Mayor and Council wish to introduce and adopt at the same meeting, the ordinance should first be introduced, then a motion should be made to waive the layover period. If the motion to waive the layover period is approved by an affirmative vote of four members of the Mayor and Council, the Mayor and Council may then proceed to move to adopt the ordinance.

Staff recommends waiving the layover period for this amendment because the Rockville Housing Enterprises transaction is scheduled to tentatively close on December 17, 2012, and staff needs time to finalize the information for the transaction.

Discussion
In accordance with the City Charter, since the budget ordinance is adopted at the fund level, a change in the appropriated amount of any fund requires action by Mayor and Council. The vehicle for such action is an amendment to the budget ordinance. The attached budget ordinance, Attachment A, would amend the Fiscal Year 2013 budget.

Staff recommends the following operating and capital improvements program (CIP) funds be amended in order to recognize changes in expenditures and revenues since the budget was adopted on May 21, 2012. Attachment B reflects the detailed changes by fund. Attachment C contains an updated Fund Summary sheet (page 3-2 of the operating budget book).

OPERATING BUDGET
Each year, the City re-appropriates funds to cover encumbrances (funding set aside to meet contractual obligations) that were outstanding at the close of the previous fiscal year. Purchase orders for these encumbrances were issued before the end of the fiscal year, but the goods or services were not delivered until after the beginning of the new fiscal year. At year-end, these funds are assigned for appropriation and are reflected as an adjustment to the next year's budget. A summary by fund of the FY 2012 purchase order amounts that carried over into FY 2013 is shown under the Fiscal Impact section of this agenda item.

In addition to the purchase orders that impact various funds, other adjustments included in this amendment are an increase of $20,000 for Police overtime related to commercial vehicle inspections (grant funded) and a $500,000 contribution to Rockville Housing Enterprises (RHE). Of the $500,000 for RHE, $200,000 will be given as a grant and $300,000 will be given as a loan. The loan structure consists of RHE paying 3 percent interest each year plus a 15 percent annual payment from the Fireside Park net cash flow towards principal. The total outstanding principal amount will be repaid at the end of the seven-year term.

CAPITAL IMPROVEMENTS PROGRAM
There are two capital project budgets that staff recommends be increased in order to recognize additional revenues. These projects include Playground Equipment Replacement (grant) and Sewer Rehabilitation (developer contribution). This portion of the Playground Equipment Replacement project will support improvements to David Scull Park, while this portion of the Sewer Rehabilitation project will support improvements to Upper Rock. The City has either received or is in the process of receiving the funds for these projects.

Mayor and Council History
This is the first budget amendment for FY 2013. The Mayor and Council adopted the FY 2013 budget on May 21, 2012.

Fiscal Impact
The following operating funds will be adjusted if this budget amendment is adopted.

City
Fund
FY 2013
Adopted Budget
FY 2012
Purchase Orders
11/2012
Amendment
Amended
Budget
General Fund
$65,305,700
$510,752
$20,000
$65,836,452
Water Fund
10,896,590
28,886
(28,886)
10,896,590
Sewer Fund
9,103,520
126,494
-
9,230,014
Refuse Fund
6,150,140
2,631
-
6,152,771
Parking Fund
2,479,790
-
-
2,479,790
SWM Fund
3,609,400
47,097
-
3,656,497
RedGate Fund
298,040
-
-
298,040
Special Act. Fund
1,334,430
446,225
500,000
2,280,655
CDBG Fund
454,072
-
-
454,072
Speed Camera Fund
2,076,900
17,928
(17,928)
2,076,900
Debt Service Fund
5,412,000
-
-
5,412,000
Total
$107,120,582
$1,180,013
$473,186
$108,773,781

The following CIP funds will be adjusted if this budget amendment is adopted.

City
Fund
FY 2013
Adopted Budget
11/2012
Amendment
Amended
Budget
Capital Projects Fund
$30,986,914
$154,000
$31,140,914
Water Fund
13,713,849
-
13,713,849
Sewer Fund
15,101,335
250,000
15,351,335
SWM Fund
5,694,024
-
5,694,024
Refuse Fund
1,126,827
-
1,126,827
Speed Camera Fund
1,825,706
-
1,825,706
Special Activities Fund
600,000
-
600,000
Parking Fund
604,239
-
604,239
Total
$69,652,894
$404,000
$70,056,894

Attachments
Attachment A: Amendment to Budget Ordinance
AttachA_BudgetOrdinance_Nov2012.pdfAttachA_BudgetOrdinance_Nov2012.pdf

Attachment B: Summary by Account of Recommended Budget Changes
AttachB_AmendmentDetail_Nov2012.pdfAttachB_AmendmentDetail_Nov2012.pdf

Attachment C: Amended Page 3-2 of the Operating Budget Book
AttachC_FundSummaries_Nov2012.pdfAttachC_FundSummaries_Nov2012.pdf


Department Head:



Gavin Cohen, Chief Financial Officer
Approved on: 11/09/2012

City Manager:

Barbara B. Matthews, City Manager
Approved on: 11/13/2012