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Ord. 2014-27 - budget amendment for Retention Incentive, HR - 3-14ORDINANCE NO. 2014-27 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2013- 2014 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2013 -42 TO AMEND ADOPTED EXPENDITURES OF THE BUDGET; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the 2013 -2014 Annual Budget and CIP Budgets were adopted by Ordinance 201342 on September 17,2013; WHEREAS, various unforeseen circumstances affecting the City have presented themselves during the course of the fiscal year; WHEREAS, the City Council considered the circumstances independently, deliberating appropriately on the associated revenues and expenditures and the overall impact on the general financial status of the City; WHEREAS, pursuant to the laws of the State of Texas and the City Charter of the City of Huntsville, Texas, the City Council has determined that it will be beneficial and advantageous to the citizens of the City of Huntsville to amend the FY 2013 -2014 Annual Budget and the Capital Improvements Projects (CIP) budget as set forth herein; and WHEREAS, this ordinance combines the independent Council actions into one budget amendment document; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: Section 1. The findings set forth above are incorporated into the body of this ordinance. Section 2. The annual budget for fiscal year 2013 — 2014 is hereby amended to include the expenditures and revenues in Exhibit "A" and the Capital Improvements Projects budget is hereby amended to include the expenditures described in Exhibit "A" attached hereto and made a part of this ordinance as if set out verbatim herein. Section 3. All ordinances of the City in conflict with the provisions of this ordinance are hereby repealed, and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4. Should any section, portion, sentence, clause or phrase of this ordinance be declared unconstitutional or invalid for any reason, it shall not invalidate or impair the force or effect of any other section or portion of this ordinance. Section 5. The necessity for amending the FY 2013 -2014 annual budget and the budget for the Capital Improvements Projects, as required by the laws of the State of Texas, requires that this ordinance shall take effect immediately from and after its passage, as the law in such cases provides. Section 6. This ordinance shall take effect immediately after its passage. PASSED AND APPROVED on this the 6th day of May 2014. THE CITY OF HUNTSVILLE, EXAS Mac Woodwarcy, Mayor AS TO FORM: City Attorney Budget Amendments FY 13 -14 Exhibit A— Aril 15, 2014 a Decrease General Fund - NonDepartmental- Miscellaneous Exp $ 212,390 Increase General Fund - applicable Divisions - applicable Sal & Ben accts $ 212,390 Decrease WaterFund - NonDepartmental- Miscellaneous Exp $ 25,201 Increase Water Fund - applicable Divisions - applicable Sal & Ben accts $ 25,201 From Wastewater Fund - Fund Balance $ 2,325 Decrease Wastewater Fund - NonDepartmental- Miscellaneous Exp $ 24,000 Increase Wastewater Fund - applicable Divisions - applicable Sal & Ben accts $ 26,325 Decrease Solid Waste Fund - NonDepartmental- Miscellaneous Exp $ 21,594 Increase Solid Waste Fund - applicable Divisions - applicable Sal & Ben accts $ 21,594 Decrease Street Fund - NonDepartmental- Miscellaneous Exp $ 17,103 Increase Street Fund - applicable Divisions - applicable Sal & Ben accts $ 17,103 From Police SRO Fund - Fund Balance $ 1,529 * Decrease Police SRO Fund - NonDepartmental- Miscellaneous Exp $ 7,800 Increase Police SRO Fund - applicable Divisions - applicable Sal & Ben accts $ 9,329 From Arts /Wynne Home Fund - Fund Balance $ 33 * Decrease Arts /Wynne Home Fund - NonDepartmental- Miscellaneous Exp $ 1,700 Increase Arts /Wynne Home Fund - applicable Divisions - applicable Sal & Ben accts $ 1,733 Decrease General Fund - NonDepartmental- Miscellaneous Exp $ 2,581 Increase General Fund - applicable Divisions - applicable Sal & Ben accts $ 2,581 Budget for a "Retention" payment was included in the Fiscal Year 13 -14 budget in applicable Funds in NonDepartmental of each Fund. The FY 12 -13 audit has demonstrated that Fund Balances for each of the Funds is sufficient to coverthe Retention payments that were budgeted for. The above budget amendments are to Explanation: move the needed budget amounts from NonDepartmental to the applicable Divisions and Salary and Benefit accounts. *The amounts budgeted in NonDepartmental for the Wastewater, Police SRO, and Arts /Wynne Home Funds was slightly less than the actual amounts needed for the retention payments; additional Fund Balance is being requested to coverthe needed amounts. Retention Incentive Payment Procedure Purpose: To recognize the contributions of employees and encourage retention during a time of diminished budgets, and to invest in the continuity and stability of the organization. Procedure: All eligible employees will receive a 2.5 %, one -time, Retention Incentive Payment, based on the employee's current base salary. To be eligible, the employee must have been a full -time, benefitted employee at the beginning of the fiscal year, October 1, 2013. The employee must be employed on the date of payment distribution. This distribution will occur before May 31, 2014. This will be a payment separate from the regular payroll, with the notation, "Retention Incentive Payment ". All applicable taxes and retirement (TMRS) will be deducted. This payment is subject to City Council approval based on available funding, and if approved, is for FY 2013 -14. Salary and Benefits costs under budget for FY 2013 listing by Fund Under Bdgt Amt for Retention Pmt Ret. as % of Undr Bdg General Fund - $550,000 $212,390 38.6% Water Fund - $101,000 $25,201 24.9% Wastewater Fund - $ 82,000 $26,325 32.1% Solid Waste Fund - $ 69,000 $21,594 31.3% Street Fund - $ 89,000 $17,103 19.2% Police SRO Fund - $ -0- $9,329 N/A Arts /Wynne Home - $ -0- $1,733 N/A H/M Tour & Vst Cntr - $ 16,000 $2,581 16.1% Retention Incentive Pavment - Unallocated Reserve /Fund Balance (a) - after reduction adjustment for $2.9M assigned for use in FY 13 -14 25% Required (10% for Arts & H /M) Actual Unalloc Amount to be Unallocated Rsv/ Reserve/ Fund used for the Bal. @ Retention Fund Fund Balance 9/30/13 pmt. General Fund $4,200,000 $6,789,000 (a) $212,390 Water Fund $3,450,000 $5,025,000 $25,201 Wastewater Fund $1,725,000 $3,557,000 $26,325 Solid Waste Fund $1,135,000 $2,272,000 $21,594 Street Fund N/A $726,700 $17,103 Police SRO Fund N/A $36,700 $9,329 Arts /Wynne Home $23,700 $59,700 $1,733 H/M Tourism & VC $47,500 $1,065,500 $2,581 (a) - after reduction adjustment for $2.9M assigned for use in FY 13 -14