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Home My WebLink About2024 09 23 Regular 501 - Budget Amendment - Designation of Funds for Sewer InfrastructureREGULAR AGENDA ITEM 501 CITY COMMISSION AGENDA | SEPTEMBER 23, 2024 REGULAR MEETING TITLE Budget Amendment - Designation of Funds for Sewer Infrastructure SUMMARY On June 14, 2021 an informational agenda item 201 was presented to introduce the American Rescue Plan Act of 2021 (ARPA). Subsequently, Consent Agenda Item 303 was presented on September 13, 2021 to Approve Resolution 2021-24 which established the ARPA fund a special revenue fund, to formally restrict expenditures and to comply with the eligible uses identified in the American Rescue Plan Act of 2021 (ARPA) under H.R. 1319 Sec. 9901: Coronavirus State and Local Fiscal Recovery Funds. Under the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) program , funds must be used for costs incurred on or after March 3, 2021. Further, funds must be obligated by December 31, 2024 and expended by December 31, 2026. This time period, during which recipients can expend SLFRF funds, is the “period of performance”. According to FY2022 financial statements under Note 14: Anticipated Cost of Wastewater Treatment System Replacement. In the coming fiscal years, the wastewater treatment system requires replacement, which will be a large construction cost the City is responsible for funding. As of the date the financial statements were issued, the total anticipated cost of this project is $100 million and will be funded using American Recovery Plan Act revenues and financing options available to the City in the coming fiscal years. Regular Agenda Item 500 presented on December 11, 2023 the City entered into an agreement with Carollo Engineers, Inc for approximately $12.9 million. Due to the nature of this project, it appears only $8.5 million will be expended within the required timeline leaving approximately $10 million at risk of having to be returned. As of the date of this agenda item, this is the only contract currently obligated for the wastewater treatment system replacement. In January of 2022, Treasury published a Final Rule offering a standard allowance for revenue loss of up to $10 million. Recipients that select the standard allowance may use that amount for government services with streamlined reporting requirements. Using this $10 million on general government services would fulfill the deadlines of being obligated by December 31, 2024 and expended by December 31, 2026. It will also relieve the General fund of $10 million in required cash flow, thus creating a 1354 savings. In turn, this savings will then be transferred to the (410) Water and Sewer Fund in order to finish funding the Carollo contract, potential land acquisition costs, and future CMAR costs. FUNDING SOURCE RECOMMENDATION Staff recommends the Commission approve Resolution 2024-24, a budget amendment proposed to use the Treasury Final Rule offering a standard allowance of $10 million on general government services in the general fund. Additionally, then transferring the savings from the General Fund to the (410) Water and Sewer fund, to be committed to Waste Water Infrastructure Capital Projects. Also to give the Finance Director and Interim City Manager the authority to amend the SLFRF reporting as required by Treasury. 1355 City of Winter Springs Resolution 2024-24 Page 1 of 2 RESOLUTION 2024-24 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS FLORIDA, AMENDING THE FISCAL YEAR 2023-2024 BUDGET; PROVIDING FOR SEVERABILITY, REPEAL OF PRIOR INCONSISTENT RESOLUTIONS, AND AN EFFECTIVE DATE. WHEREAS, Section 7.05 of the City Charter provides that the annual City budget may be amended by Resolution duly adopted by the Commission; and WHEREAS, the City Commission of the City of Winter Springs deems that this Resolution is in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. Incorporation of Recitals. The foregoing recitals are deemed true and correct and are hereby fully incorporated by this reference. Section 2. That the Fiscal Year 2023-2024 City Budgets are amended as provided in Attachment 1. Section 3. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 4. Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 5. Effective Date. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. RESOLVED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the 23rd day of September, 2024. ATTEST: __________________________________________ KEVIN McCANN, Mayor 1356 City of Winter Springs Resolution 2024-24 Page 2 of 2 _____________________________________ CHRISTIAN GOWAN, City Clerk Approved as to legal form and sufficiency for the City of Winter Springs only: _____________________________________ ANTHONY A. GARGANESE, City Attorney 1357 Attachment 1 - Budget Amendment Resolution 2024-24 Fund GL Db Cr 180 - ARPA Fund Transfer to GF to cover general gov services 180-00-0000-591001 (Transfer to General Fund)10,000,000 Recognize Grant Revenue 180-00-0000-332390 Federal Grant 10,000,000 001 - General Fund Savings from additional cash flow 001-19-1900-591410 (To Water Sewer Utility)10,000,000 Revenue from ARPA to cover general gov services 001- 00-0000-381180 (From ARPA Fund)10,000,000 410 - Water Sewer Utility Expenditures for Waste Water Infrastructure in FY25 and beyond 410-36-3600-599900 10,000,000 Transfer from GF from savings 410-00-0000-381001 10,000,000 Increase in Expenditures/Increase in Revenues 30,000,000 30,000,000 1358 Example of Allocation of General Government Services Sum of YTD Actuals Column Labels Percentage Allocation Row Labels Base Wages/Salaries FICA Health Insurance Overtime Workers' Comp Grand Total 10,000,000 Division 1200 - City Manager 72,193 5,754 3,523 3,721 566 85,757 0.86%85,574 Division 1210 - City Clerk 120,739 8,989 29,636 3,141 216 162,721 1.62%162,373 Division 1300 - Finance - General 569,908 41,225 73,494 3,906 981 689,513 6.88%688,039 Division 1315 - Human Resources 253,199 18,852 22,553 - 435 295,040 2.94%294,409 Division 1500 - Comm Dev - Administration 102,293 7,759 10,473 199 176 120,900 1.21%120,641 Division 1510 - Long-Range Planning 139,066 10,468 17,797 238 167,570 1.67%167,212 Division 1520 - Urban Beautification 197,392 15,453 43,355 13,991 12,105 282,296 2.82%281,693 Division 1600 - IS General 361,817 26,202 66,903 289 619 455,829 4.55%454,855 Division 1935 - Facilities Maintenance 172,593 13,920 16,360 12,758 11,249 226,881 2.26%226,396 Division 1940 - Fleet Maintenance 261,169 19,681 33,095 2,188 8,415 324,547 3.24%323,853 Division 2100 - Office of the Chief 4,031,707 315,288 513,737 206,002 147,682 5,214,415 52.03%5,203,270 Division 4100 - Public Works - Administration 112,618 8,430 23,164 824 5,175 150,211 1.50%149,890 Division 4110 - Roads & ROW Maintenance 285,882 21,256 77,179 5,865 28,164 418,347 4.17%417,452 Division 7200 - Parks & Rec Administration 162,985 12,255 9,290 156 3,652 188,337 1.88%187,934 Division 7230 - Parks & Grounds 655,434 51,692 59,552 25,678 30,949 823,305 8.22%821,545 Division 7240 - Programs 49,309 3,793 268 1,959 55,329 0.55%55,211 Division 7250 - Seniors 160,496 12,477 9,689 3,174 5,289 191,125 1.91%190,716 Division 7415 - Marketing & Events 129,358 8,992 30,183 539 226 169,297 1.69%168,936 Grand Total 7,838,157 602,484 1,039,982 282,700 258,096 10,021,419 100%10,000,000 * This is an example, final numbers will be based on final payroll numbers for fiscal year ended Sept 30th 2024. 1359