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Agenda 09/11/2018 Item #16F 709/11/2018 EXECUTIVE SUMMARY Recommendation to authorize budget amendments appropriating approximately $530,027,210 of unspent FY2018 grant and project budgets into FY2019. OBJECTIVE: Board of County Commissioners' approval of budget amendments which will increase the FY 2019 budget by approximately $530,027,210 in the various Capital projects, Grant and Grant donor matching funds. CONSIDERATIONS: During fiscal year 2018, grants and capital projects were contemplated and planned for in the adopted budget and/or budget amendments were processed. Grants and Capital Projects do not necessarily “expire” at the end of the Board’s fiscal year, on September 30. The unspent portion of these budgets need to roll forward into the next fiscal year to avoid disruption in th e payment of venders and employees. This action is considered customary and routine in accordance with budgetary practices and the accounting associated with Capital and Grant Funds. Grant awards are approved by the Board at various times during the year ; many grants have fiscal year cycles different than the County’s fiscal year of Oct 1 - Sept 30. At year-end, the accounting system SAP automatically calculates the unspent budget (amended budget less expenditures) and posts this amount into fiscal year 2019 budget as a budget amendment. Some grants require local matching funds. In the donor funds, match money is budgeted as a transfer to the Grant Fund. As expenditures are incurred, Finance transfers the correct amount of cash from the donor fund to the Grant Fund. If at year end, the grant is not completed, committed match dollars sitting in the donor fund must be re-budgeted in fiscal year 2019 to ensure that the grant is in compliance with the grant contract and match requirements. Capital Projects are usually multi-year projects. Budgets are created during the budget process and/or in the form of budget amendments. As professionals and contractors are hired, purchase orders are opened and work is in progress, the closing down and starting up a fiscal year should not disrupt the progress of a capital project. The accounting system SAP automatically calculates the unspent budget (amended budget less expenditures) and posts this amount into fiscal year 2019 budget as a budget amendment. Section 129.06, Florida Statute, mandates that any increase in a Fund by the recognition of Carryforward and increasing the appropriations must be approved by resolution of the Board of County Commissioners after an advertised public hearing. (The resolution will be in the next BCC meeting on September 25). The $530,027,210 is the amount of unspent budget (amended budget of $830,044,853.87 less expenditures of $337,316,453.87) as of August 27, 2018 plus the amount of transfers to be made by the donor funds of $37,298,810. On October 1, SAP will automatically calculate and post the unspent budgets in each grant and capital project’s fund. The actual amount of the budget amendment may be more or less than $530,027,210 depending on the activity within the remaining 35 days before September 30. Additional moneys will be spent when invoices are processed and/or the Board may authorize budget amendments on September 11th and September 25th which was not contemplated in this executive summary. If we wait until after the close of the fiscal year for Board approval on the budget amendments to carryforward the unspent budgets, all the capital projects and grants will sit idle with no budgets for 9 days. This will mean that over $167 million in open purchase orders canno t roll into FY 2019; venders and employees will not receive any form of payment until after the October 9th Board meeting. 16.F.7 Packet Pg. 2629 09/11/2018 Below is a recap of Exhibit A listing the primary categories of the estimated roll over amounts in the Capital Projects and Grants totaling $530,027,210. The categories are listed from most restricted to least restricted in terms of various legislature, statutory, legal, policy, program or regulatory constraints. Unspent budgets as of 8/27/2018 Grant Funds $67,064,100 Donor Funds Providing Grant Match Money 37,298,810 Gas Tax Capital Projects Fund 33,490,300 Impact Fees Capital Projects Funds 118,419,200 User Fees Capital Projects Funds 189,137,400 Ad Valorem Supported Capital Projects Funds 84,617,400 Total $530,027,210 FISCAL IMPACT: Budget amendments in the approximate amount of $530,027,210 are needed in FY 2019 to re-appropriate unspent (FY 2018) budget within each capital project, grant and match funds and to recognize a like amount in Carryforward/Grant revenue. Attached is Exhibit “A” listing each Fund and estimated dollar amount calculated as of August 27, 2018. On October 1, the accounting system SAP will calculate and post the precise amount of unspent budget and this amount may be more or less than $530,027,210, depending on the activity over the remaining 35 days in the fiscal year. This roll of unspent funds does not affect the adopted FY 2019 budget which the Board will approve on September 20, 2018. GROWTH MANAGEMENT IMPACT: While there is no new growth management impact, this carryforward funding request will ensure that there are no payments or contracting delays for budgeted growth management projects. LEGAL CONSIDERATIONS: This item was reviewed by the County Attorney, is approved as to form and legality, and requires majority support for approval. -JAK RECOMMENDATION: Recommendation to authorize budget amendments totaling approximately $530,027,210 to re-appropriate unspent (FY 2018) budget and carry forward into fiscal year 2019 for capital projects, grants and match money. PREPARED BY: Susan Usher, Senior Budget Analyst, Office of Management and Budget Mark Isackson, Director of Corporate Finance & Management Services, Office of Management and Budget ATTACHMENT(S) 1. FY18 Proj roll to FY19 Attachment A for Ex Sum (PDF) 16.F.7 Packet Pg. 2630 09/11/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.7 Doc ID: 6566 Item Summary: Recommendation to authorize budget amendments appropriating approximately $530,027,210 of unspent FY2018 grant and project budgets into FY2019. Meeting Date: 09/11/2018 Prepared by: Title: Operations Coordinator – Office of Management and Budget Name: Valerie Fleming 08/29/2018 3:42 PM Submitted by: Title: Operations Coordinator – Office of Management and Budget Name: Valerie Fleming 08/29/2018 3:42 PM Approved By: Review: Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 08/29/2018 3:43 PM Budget and Management Office Mark Isackson Level 3 OMB 2nd Reviewer Completed 08/29/2018 3:50 PM Office of Management and Budget Valerie Fleming Level 3 OMB 1st Reviewer 1-4 Skipped 08/29/2018 3:56 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/30/2018 11:47 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 09/03/2018 6:52 PM Board of County Commissioners MaryJo Brock Meeting Pending 09/11/2018 9:00 AM 16.F.7 Packet Pg. 2631 Exhibit A (As of 8/27/2018) Grants: Economic Development Fund (007)1,543,100 Sheriff's Grants Fund (115)98,100 Miscellaneous Grants Fund (116)82,000 Natural Resources Grant (117)6,700 Sea Turtle/Parks Grant (119)3,700 Community Development Block Grants Fund (121)47,300 Services for Seniors - County Aging Program Fund (123)206,100 MPO Grants Fund (128)45,400 Library Grants Fund (129)512,300 Public Utilities Grant Fund (416)375,000 Collier Area Transit (CAT) Grant Fund (424)8,777,900 Collier Area Transit (CAT) Grant Match Fund (425)1,427,500 Collier Area Transit (CAT) Enhancements Fund (426)1,796,700 Transportation Disadvantaged Fund (427)850,400 Transportation Disadvantaged Grant Fund (428)846,500 Transportation Disadvantaged Grant Match Fund (429)140,900 EMS Grants Fund (493)242,200 EMS Grants Match Fund (494)5,000 Airport Authority Capital Fund (496)11,201,900 Airport Authority - Immokalee Capital Improvements Fund (497)4,700 Airport Authority Grant Fund (498)496,300 Airport Authority Grant Match Fund (499)131,100 Specialized Grant Fund (701)1,836,400 Administrative Services Grants (703)106,100 Housing Grant Fund (705)3,775,400 Housing Grant Match Fund (706)40,900 Human Services Grant Fund (707)3,285,900 Human Services Grant Match Fund (708)47,000 Public Services Grant Fund (709)858,500 Public Services Grant Match Fund (710)82,500 Transportation Grant Fund (711)17,434,200 Transportation Grant Match Fund (712)2,902,600 Bayshore CRA Grant Fund (717)42,600 Deepwater Horizon Oil Spill Settlement (757)2,020,300 State Housing Incentive Partnership Grant Fund (791)5,790,900 67,064,100 Donor Funds Providing Match Money to Grants: General Fund (001)16,896,906 MSTU Unincorporated General Fund (111)50,324 Community Development Fund (113)46,331 Planning Services Fund (131)9,578,200 Conservation Collier Maintenance Fund (174)770 EMS (490)11 Airport Fund (495)9,643,155 Sheriff's Confiscated Property Trust Fund (602)24,257 Crime Prevention Trust Fund (603)58,856 Pelican Bay Street Lighting District Fund (778)1,000,000 37,298,810 Gas Taxes Capital Projects: Road construction - Gas Tax Capital Fund (313)33,490,300 Gas Taxes Estimate of the Unspent 2018 Project Budgets to be Added to FY 2019 Budget 16.F.7.a Packet Pg. 2632 Attachment: FY18 Proj roll to FY19 Attachment A for Ex Sum (6566 : Unspent FY 2018 grant and project budgets into fiscal year 2019) Estimate of the Unspent 2018 Project Budgets to be Added to FY 2019 Budget - continued Impact Fee Capital Projects: Road Impact Fee - District 1 Fund (331)17,512,200 Road impact Fee - District 2 Fund (333)8,561,800 Road Impact Fee - District 3 Fund (334)1,314,100 Road Impact Fee - District 4 Fund (336)13,844,200 Road Impact Fee - District 6 Fund (338)11,228,700 Road Impact Fee - District 5 Fund (339)7,672,000 Regional Park Impact Fee Fund (345)945,500 Community and Regional Parks Impact Fee - Unincorporated Area Fd (346)21,547,100 EMS Impact Fee Fund (350)2,339,400 Library Impact Fee Fund (355)555,400 Ochopee Fire Control District Impact Fee Fund (372)17,300 Isle of Capri Impact Fee Fund (373)70,800 Correctional Facilities Impact Fee Fund (381)1,612,400 Law Enforcement Impact Fee Fund (385)1,304,000 Government Facilities Impact Fee Fund (390)3,039,200 Water Impact Fees Capital Projects Fund (411)13,192,400 County Sewer System Development Capital Fund (413)13,662,700 118,419,200 User Fees Capital Projects: Pine Ridge Industrial Park MSTU (132)1,000 Special Assessment Naples Production Park MSTD (138)348,800 Special Assessment Conservation Collier Capital Fund (179)119,000 Conservatiom Collier tax Court Maintenance Fund (181)6,119,200 Court Fines & Fees TDC Beach Park Facilities Fund (183)11,376,100 Tourist Development (TDC) tax TDC - Beach Renourishment and Pass Maintenance Fund (195)40,435,600 Tourist Development (TDC) tax Florida Boating Improvement Fund (303)855,200 Vessel Registration Fees ATV Settlement (305)3,019,200 Settlement from SFWMD Community Development - Planning Services Projects (309)112,100 User Fees (TDC) Museum Capital Projects Fund (314)1,024,900 TDC tax Clam Bay Restoration Capital Fund (320)106,700 Special Assessment Pelican Bay Irrigation and Landscape Capital Fund (322)2,020,600 Special Assessment Road Assessments (341)473,500 Special Assessment Sports Complex Capital (370)74,600 TDC tax Water - Sewer Motor Pool Capital Recovery Fund (409)2,892,200 Water-Sewer User Fees Water User Fees Capital Projects Fund (412)29,449,800 Water User fees Sewer User Fee Capital Projects Fund (414)64,121,800 Sewer User fees Public Utilities Special Assessment (418)20,000 Special Assessment Solid Waste Motor Capital Recovery Fund (472)327,200 Solid Waste fees Solid Waste Capital Projects Fund (474)9,868,900 Solid Waste fees Information Technology Capital Fund (506)1,794,200 Internal Service Charges Motor Pool Capital Recovery Fund (523)6,087,300 User Fees Tourist Development Capital Projects (758)8,489,500 Tourist Development tax 189,137,400 Ad Valorem Capital Projects: MSTD Landscaping Projects Fund (112)5,054,200 County-wide Capital Projects Fund (301)20,700,400 Parks and Recreation Capital Projects Fund (306)3,987,000 Transportation Road & Bridge Capital Fund (310)20,278,000 Stormwater Capital Projects Fund (325)23,968,600 EMS Capital Fund (491)10,629,200 84,617,400 Grand Total 530,027,210 16.F.7.a Packet Pg. 2633 Attachment: FY18 Proj roll to FY19 Attachment A for Ex Sum (6566 : Unspent FY 2018 grant and project budgets into fiscal year 2019)