047 of 1998 - Amending Salt Lake City Ordinance No. 27 of 1997 which adopted the Final Budget of Salt Lake City, i0 98-1
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SALT LAKE CITY ORDINANCE
No. 47 of 1998
(Amending Salt Lake City Ordinance No. 27 of 1997
which adopted the Final Budget of Salt Lake City,
including the employment staffing document,
for Fiscal Year 1997-98)
AN ORDINANCE AMENDING SALT LAKE CITY ORDINANCE NO. 27
OF 1997 WHICH APPROVED, RATIFIED AND FINALIZED THE BUDGET OF
SALT LAKE CITY, UTAH, INCLUDING THE EMPLOYMENT STAFFING
DOCUMENT, FOR THE FISCAL YEAR BEGINNING JULY 1, 1997 AND
ENDING JUNE 30, 1998.
PREAMBLE
On June 10, 1997, the Salt Lake City Council approved, ratified and
finalized the budget of Salt Lake City, Utah, including the employment
staffing document, for the fiscal year beginning July 1, 1997 and ending
June 30, 1998, in accordance with the requirements of Section 1 18,
Chapter 6, Title 10 of the Utah Code Annotated, and said budget, including
the employment staffing document, was approved by the Mayor of Salt Lake
City, Utah.
The City's Policy and Budget Director, acting as the City's Budget
Officer, prepared and filed with the City Recorder proposed amendments to
said duly adopted budget, including the amendments to the employment
staffing document, copies of which are attached hereto, for consideration by
the City Council and inspection by the public.
The City Council fixed a time and place for a public hearing to be held
on June 4, 1998 to consider the attached proposed amendments to the
budget, including the employment staffing document, and ordered notice
thereof be published as required by law.
Notice of said public hearing to consider the amendments to said
budget, including the employment staffing document, was duly published
and a public hearing to consider the attached amendments to said budget,
including the employment staffing document, was held on June 4, 1998, in
accordance with said notice at which hearing all interested parties for and
against the budget amendment proposals were heard and all comments were
duly considered by the City Council.
All conditions precedent to amend said budget, including the
employment staffing document, have been accomplished.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. Purpose. The purpose of this Ordinance is to amend the
budget of Salt Lake City, including the employment staffing document, as
approved, ratified and finalized by Salt Lake City Ordinance No. 27 of 1997.
SECTION 2. Adoption of Amendments. The budget amendments,
including amendments to the employment staffing document, attached
hereto and made a part of this Ordinance shall be, and the same hereby are
adopted and incorporated into the budget of Salt Lake City, Utah, including
the employment staffing document, for the fiscal year beginning July 1,
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1997 and ending June 30, 1998, in accordance with the requirements of
Section 128, Chapter 6, Title 10, of the Utah Code Annotated.
SECTION 3. Certification to Utah State Auditor. The City's Policy
and Budget Director, acting as the City's Budget Officer, is authorized and
directed to certify and file a copy of said budget amendments, including
amendments to the employment staffing document, with the Utah State
Auditor.
SECTION 4. Filing of copies of the Budget Amendments. The said
Budget Officer is authorized and directed to certify and file a copy of said
budget amendments, including amendments to the employment staffing
document, in the office of said Budget Officer and in the office of the City
Recorder which amendments shall be available for public inspection.
SECTION 5. Effective Date. This Ordinance shall take effect on its
first publication.
Passed by the City Council of Salt Lake City, Utah, this 9 day of
June
ATTEST:
,/
, 1998.
IEF'T'U i4CITY RECORDER
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Transmitted to the Mayor on June 10, 1998
Mayor's Action:
ATTEST:
(SEAL)
xx Approved Vetoed
ITY RECORDE
Bill No. 47 of 1998.
Published: June 17, 1998
; i
Salt Lake iy� lir.rf.; () k;c
Date , 5� 119
ina98\Amending budget 6-9.doc
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Issues in Budget Amendment - June 1998
1. Unemployment Compensation Fund Adjustment
2. Early Retirement Incentive Program
3. Fire Department Early Retirement
4. 600 South Property Repairs
5. Police Department Reimbursement Revenues
6. City Tax Notes Interest Adjustment
7. Motor Fuel Excise Tax Bond Fund Adjustment
8. CIP Sidewalk -Fairfax Ave. to Popperton Park
9. CIP Contingency for FY 1997-98
10. CIP Budget Transfer for Traffic Signal Projects
11. CIP Budget UDOT Fencing
12. Light Rail Corridor Economic Development
$47,000
$1,500,000
$282,977
$50,000
$92,400
$35,625
$2,500
$7,800
($2, 000, 000)
$-0- net
$-0- net
$250,000
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Issue Request #1 - Unemployment Compensation Fund Adjustment
$47,000 Budget Impact
Insurance and Risk Management Fund
When the budget was put together for the City's self insurance fund which
pays unemployment insurance for layed off city employees the estimate was that
no change would occur because the City employment picture looked similar to
that of the past year. What we have found is that the weekly benefit rate has
been raised and seasonal employees who where previously retained during the
winter months are now put on lay off status and are eligible for unemployment
until we hire them back for another season. This a cost of doing business for the
programs which use seasonal employees and it is less costly to pay this benefit
than to hire them full time, when full time is not needed.
This adjustment is mainly for budgeting and accounting purposes because
the actual billings to the departments affected will bring in the necessary revenue
to equal the additional expenses needed.
Fund
Department / Category
Decrease
Increase
Insurance and
Unemployment Insurance premiums (R)
$47,000
Risk Mgmt.
Fund
Unemployment Insurance payments (E)
$47,000
Issue Request #2 - Early Retirement Incentive Program
General Fund Transfer $1,500,000
Insurance and Risk Administration Fund $1,500,000
It is requested to establish an appropriation of $1,500,000 in the Insurance
and Risk Administration Fund. This yearly request is made at this time in order
to take advantage of any remaining expense budget balances at year end and pay
early retirement benefits out of the current fiscal year instead of forcing
departments next year to hold necessary positions unfilled until the costs are
covered. Funding will come from savings from departments as they recognize
it. No funding will be brought from current fund balance or from additional
revenues generated to cover these projected expenditures. The amount requested
is based on the total number of individuals eligible under the early retirement
provision.
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Fund
Department / Category
Decrease
Increase
General Fund
Non Departmental transfer to Insurance and Risk
Administration Fund (E)
$1,500,000
Insurance and
Transfer from General Fund (R)
$1, 500,000
Risk
Administration
Fund
Early retirement incentive pay (E)
$1, 500,000
Issue Request #3 - Fire Department Early Retirement
$282,977
General Fund
At the end of last fiscal year the annual early retirement account transfer
came up $168,000 short of covering all the early retirements. This amount
obligated the Fire Department this fiscal year to cover this amount. The
Department has been tracking their personal service costs this year and have
made adjustments to try and cover this but has not been able to do so.
Additionally, another $114,977 is anticipated to be needed to prevent them from
exceeding budget.
It is recommended that $200,000 of funding for this correction come from
an identified surplus amount in the Insurance and Risk Administration Fund LTD
account. This account has accumulated excess amounts over the years and will
not need this excess. There will still be sufficient reserves in the account to
cover anticipated needs. The $82,977 difference of funding will come from
recognizing an additional $82,977 of property tax revenue actually collected
above budget.
Fund
Department / Category
Decrease
Increase
General Fund
Transfer from Insurance/Risk Admin. LTD Fund (R)
$200,000
Property Tax revenue (R)
$82,977
Fire Department personal services (E)
$282,977
Insurance/Risk
Transfer to General Fund (E)
$200,000
Admin. Fund
Source -Fund Balance (FB) not posted
$200,000
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Issue Request #4 - 600 South Property Repairs
$50,000
CIP Fund
The clock shop property located at 600 South is now vacated by the
previous owner and tenant. The City currently plans to move the copy center
operations there when the new contract is issued to provide this service. This
move will free up valuable space in the City and County Building and allow us to
better utilize the space. The clock shop property has been inspected and there are
some things which need to be done to bring it up to code and allow us to use it
for City purposes. It needs some minor repairs and enhancements to the
electrical and mechanical functions, the removal and/or on site mitigation of
some asbestos. It also needs restroom facilities built which meet ADA
requirements, and some repairs to the roof.
The previous owner has been paying the City rent on this property, as have
all the tenants on the 600 South property. There is adequate funds in the CIP
surplus property account from these rental payments to cover the approximate
$50,000 cost of these repairs, etc.
Fund
Department / Category
Decrease
Increase
CIP Fund
Rental Income (R)
$50,000
600 South Property (E)
$50,000
Issue Request #5 - Police Department Reimbursement Revenues
$92,400
General Fund
The city should increase the operating budget of the department to reflect
several reimbursed expenses for FY 1998. First, the department provides police
officers on an overtime basis to meet special community & business needs and
invoices for the related expenses. The amount projected for FY 1998 is $59,000.
Second, the department participates in Driving Under the Influence (D.U.I.)
sweeps in conjunction with volunteers and the police officer overtime is
reimbursed by a cooperative effort with Utah Highway Patrol Training funds.
This amount for FY 1998 is $12,300. Third, the department receives overtime
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reimbursement for officers assigned to the Metro Narcotics/Drug Enforcement
Administration task force. This amount for FY 1998 is $16,100. And fourth, the
department on occasion receives revenue for officers attending court on duty as
well as other court related reimbursements. This amount for FY 1998 is $2,100.
In addition to reimbursed personal services, revenues totaling $2,900 are
projected for reimbursed O&M supplies. The department allows for the purchase
of service weapons to retiring officers, police patch sales to appropriate
individuals, and "No trespassing" signs for area property owners in a cooperative
effort to reduce vandalism, littering, harassment in and around places of business.
The requested amendment also reflects these reimbursements.
Fund
Department / Category
Decrease
Increase
General Fund
Police / Charges, Fees and Rentals (R)
$89,500
Police / Sundry Revenues (R)
2,900
Police / Personal Services (E)
89,500
Police / Operating & Maintenance (E)
2,900
Issue Request #6 - City Tax Notes Interest Adjustment
$35,625 Budget Impact
General Fund
The City should increase the General Fund Tax Notes interest budget to
reflect the actual interest rate. At the time the General Fund budget was finalized
for FY 1997-98, the City's Tax Notes were not yet sold. A $15,000,000 issue
with a 4.25 % coupon was used to calculate interest expense for the General
Fund. When the process was finally complete, the City had sold $15,000,000 in
Tax Notes with a 4.5 % coupon. The effect of the final/actual interest rate needs
to be reflected in the amount budgeted for interest expense. The offset to the
increase in interest expense of $35,625 will be reflected in an increase to interest
income.
Fund
Department / Category
Decrease
Increase
General Fund
Non Departmental / Tax Note Interest Expense (E)
$35,625
Management Services / Tax Note Interest Income (R)
35,625
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Issue Request #7 - Motor Fuel Excise Tax Bond Fund Adjustment
$2,500 Budget Impact
Debt Service Fund
The City should increase the Debt Service Fund budget for Motor Fuel
Excise Tax Bonds by $2,500.
The Motor Fuel Excise Tax Bonds require an arbitrage rebate calculation
each year. The calculation period always coincides with the fiscal year end.
Typically the amount is constant, and can be estimated from year to year.
However, because 1998 is the five year anniversary of the Motor Fuel Excise
Tax Series 1993 Bonds, a special calculation is needed. Federal tax regulations
require a special calculation to be performed every five years on the anniversary
date of the bond issue. For FY 1997-98, this resulted in an additional charge of
$2,500.
Interest income of $37,848 has accrued in the Debt Service Fund, but it is
typically not budgeted. A portion of this interest should be appropriated to
provide the revenue needed for the increased expenses related to the Motor Fuel
Excise Tax Bonds.
Fund
Department / Category
Decrease
Increase
Debt Service
Non Departmental / Motor Fuel Excise Tax Bond
$2,500
Fund
Fund interest income (R)
Non Departmental / Motor Fuel Excise Tax Bond
$2,500
Fund expenses (E)
Issue Request #8 - CIP Sidewalk -Fairfax Avenue to Popperton
Park
$7,800 Budget Impact
CIP Fund
The City should create a budget of $7,800 for the construction of a
sidewalk from Fairfax Avenue to Popperton Park.
The City is in the process of entering into an agreement with the Shriner's
Hospital to allow for the construction of a sidewalk from Fairfax Avenue to the
southwest corner of Popperton Park. A Community Council requirement for the
construction of the Shriner's Hospital specified that the hospital dedicate this
right-of-way and construct the sidewalk for neighborhood use. The Shriner's
Hospital was initially going to construct the walk as part of their project.
However, because of liability concerns, the Shriner's Hospital determined it
would be more appropriate to dedicate the right-of-way and pay money to the
City for the construction. The walkway will provide access to Popperton Park
and will eventually tie into the park walkways. The budget for the sidewalk
needs to be created before the work can begin.
Fund
Department / Category
Decrease
Increase
CIP Fund
CIP / Sidewalk - Fairfax Avenue to Popperton
$7,800
Park (R)
CIP / Sidewalk - Fairfax Avenue to Popperton
7,800
Park (E)
Issue Request #9 - CIP Contingency for FY 1997-98
($2,000,000) Budget Impact
CIP Fund
The City should reduce the Fiscal Year 1997-98 CIP Contingency budget
of $2,182,000 by $2,000,000.
The sale of a parcel of land in West Jordan at Airport No. 2 for
approximately $13 million last year allowed the City to fund additional projects in
Fiscal Year 1997-98. Two million dollars of these proceeds were originally set
aside for the Fairmont Park Swimming Pool. The funds were not needed for this
project, so they were moved to the CIP Contingency budget. This money could
now be better used by funding additional capital improvement projects for Fiscal
Year 1998-99. Therefore, it is recommended that the contingency budget be
reduced for FY 1997-98 by $2 million which will be appropriated in FY 1998-99.
Fund
Department / Category
Decrease
Increase
CIP Fund
CIP / General Fund Contingency (E)
$2,000,000
CIP / Land Sale (R)
$2,000,000
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Issue Request #10 - CIP Budget Transfer for Traffic Signal
Proj ects
$-0- Net Budget Impact
CIP Fund
The City should transfer surplus budget of $95,000 from the completed
Traffic Signals Project to the Pedestrian Traffic Signal Installation project.
In Fiscal Year 1994-95, a budget of $1,438,222 was allocated for a Traffic
Signals Project. This project has been completed for all the signals that were bid,
and has a remaining budget of about $128,000. The remaining budget is a result
of the final cost for the signals being below the estimates.
The design for another signal project, Pedestrian Traffic Signal
Installation, is nearing completion. The design has revealed that the estimated
cost now exceeds the current available budget for this new project. It is
requested that a portion of the surplus budget be transferred from the old project
to the new project to allow it to be bid and constructed. The Pedestrian Traffic
Signal Installation budget should be increased by $95,000. Additional traffic
signal projects will likely be identified at a later date that will require the
remaining surplus funds (about $33,000) in the Traffic Signals Project.
Fund
Department / Category
Decrease
Increase
CIP Fund
CIP / Pedestrian Traffic Signal Installation (E)
CIP / Traffic Signals Project (E)
$95,000
95,000
Issue Request #11 - CIP Budget UDOT Fencing
$-0- Net Budget Impact
CIP Fund
The City Council approved funding for a fencing project along 600 N. and I-15 in
November, 1998. The amount was for $75,000. The source of funds was to be
rental income from UDOT' s use of the land. The interlocal agreement was
discussed previously. Funding in the interlocal called for a budget of $127, 824.
We are recommending that the budget amount be increased. The $52,824
difference will come from the CIP contingency account. We have subsequently
discovered that the rental issue with UDOT will not take place, and therefore the
land in question will be sold for an anticipated price of $20,000. This means we
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are also recommending that an additional $55,000 of CIP contingency be used to
cover this difference.
Another interlocal agreement with UDOT regarding the design of a `Cable
stayed feature' located on 600 S. and I-15 will require $9,635. This amount will
also be covered by the CIP contingency account.
The total difference to be covered by CIP contingency on these two
projects will be $117,459.
Fund
Department / Category
Decrease
Increase
CIP Fund
CIP / UDOT Fencing (E)
$52,824
CIP/Rental Income (R)
$55,000
CIP/Contingency (E)
$117,459
CIP/UDOT Cable Stayed Feature (E)
$9,635
Issue Request #12 - Light Rail Corridor Economic Development
$250,000 Budget Impact
General Fund
The City should appropriate $250,000 from additional recognized property
tax revenue to the Downtown Alliance for the purpose of stimulating those
businesses along the light rail corridor that have been affected by the construction
project.
The businesses abutting the light rail corridor are vital in the maintenance
of a vibrant and dynamic economic base, and their continued success is essential
for the economic well-being of the City. Light rail construction has limited
access to these businesses and by providing some additional resources, some of
the negative effect can be ameliorated and the loss of sales tax and property tax
revenues can be minimized. The grant is expected to provide short-term help to
these businesses so that long-term consequences can be avoided.
The use of these funds is for the public purpose of improving the overall
vitality of the City's economic base and is closely similar to those City funds
appropriated each year to the Chamber of Commerce and the Economic
Development Corporation of Utah for the purpose of economic development.
The Downtown Alliance is a special improvement district that is funded by
a property tax assessment on businesses in the Central Business District. Because
its mission is to promote the economic health and vitality of the downtown area,
it is uniquely suited to manage this project. The Alliance's membership is
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comprised of many businesses along the construction corridor and has agreed to
work with them, as well as those along the corridor but outside the Alliance's
legal boundaries, for this project. It is expected that the Alliance will poll the
affected businesses to develop the most efficient plan possible as determined by
the businesses. The Alliance, in conjunction with interested businesses abutting
the light rail corridor, will develop a financial disbursement plan and/or program.
The conditions of the grant are:
• All direct recipients must be within Salt Lake City limits.
• All direct recipients must abut the light rail construction corridor.
• The Alliance must provide a written program to the City by June 23, 1998,
outlining the proposed use of the funds.
• The entire grant must be fully expended before December 31, 1998.
• The entire grant must be used for economic development/promotion and can
not be used to pay for administrative costs.
• The Alliance will provide a report to the City Council and Administration on
the accomplishments of the grant program no later than January 1, 1999.
• The Alliance will maintain an audit trail on the receipt and expenditure of all
funds, and will provide the City access to these records.
Fund
Department / Category
Decrease
Increase
General Fund
Property Tax Revenue (R)
$250,000
Non Departmental/Light Rail Corridor
Economic Development (E)
$250,000
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