ADMINISTRATION - Joe Huss, Finance Director
Title
2014 BUDGET AMENDMENTS
Background
As part of the 2014 budget process, appropriations were made to accommodate the management of resources for snow and ice events, including employee overtime and chemical supplies. In October, Council amended the budget with a $25,000 adjustment for the purchase of salt and other chemicals. As staff projects operating costs through the remainder of this year, it appears likely that Public Works will exceed their budgeted appropriation for overtime wages, and will likely require additional salt. Staff is requesting budget amendments in the Street Maintenance Snow Management division to cover the additional wages and supplies that have occurred in 2014 and to provide additional appropriations for the snow or ice events that might occur through the end of this year. Through November, there have been 40 snow and/or ice events, well beyond the typical 24 snow/ice events that are used to establish the budget. Thus, staff is requesting Council authorization to re-appropriate up to $145,000 from the General Fund contingency reserve, with $100,000 allocated to the Public Services Department Snow Management Division Overtime, and $45,000 allocated to Public Services Department Snow Management Division chemical supplies.
Additionally, the extended below average temperatures experienced through May of 2014, and the below average temperatures that have occurred in November has placed stress on the amounts budgeted for natural gas. Thus staff is requesting that the 2014 budget be amended and that $45,000 be re-appropriated from The General Fund contingency reserve to the Public Buildings Natural Gas Services account.
Recommendation
Approve attached resolution.
Body
WHEREAS, Sound budgeting principles promote appropriating necessary funds required to accomplish approved objectives; and
WHEREAS, Sound budgeting principles also promote providing for contingencies and unforeseen emergencies so as to not prevent objectives from being met; and
WHEREAS, Appropriations were made in 2014 sufficient for 12 snow events and 6 ice events; and
WHEREAS, Appropriations were made in 2014 sufficient for a typical year's supply of natural gas used for heating buildings; and
WHEREAS, the first six months of 2014 produced an inordinate amount of snow and ice causing the depletion of the City's snow management appropriations; and
WHEREAS, the first six months of 2014 experienced below-average temperatures causing a greater demand for natural gas to heat buildings; and
WHEREAS, City staff anticipates the likelihood of five snow/ice events occurring before the end of 2014, requiring the appropriation of additional resources;
NOW THEREFORE BE IT RESOLVED that the City Council of Blaine amends the 2014 General Fund Budget, and authorizes the City Manager to re-appropriate up to $190,000 from the General Fund's contingency reserve to the following accounts:
· Public Services Department Snow Management Division Overtime, 101.50.530.533.5304-4102, in the amount of $100,000
· Public Services Department Snow Management Division chemical supplies, 101.50.530.533.5305-4208, in the amount of $45,000
· Public Services Department Buildings Maintenance Division Natural Gas, 101.50.530.532.-4331, in the amount of $45,000
PASSED by the City Council this 4th day of December 2014.