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Page 1 of 4 Ogden City Council Meeting: March 7 2017 FY2017 BUDGET AMENDMENT ($3,005,000) – Revenues CIP Fund - Transfer from BDO Retained Earnings ($250,000) Airport Fund – Transfer and Loan from BDO Retained Earnings and Parking Fees ($1,315,000) BDO Fund – Use of Retained Earnings ($1,440,000) --Appropriations CIP Fund – Airport Parking Improvements ($250,000) Airport Fund – Airline Reserves, Travel Agency Reserves, Marketing, Equipment, Additional Wages, Familiarization Tours ($1,315,000) BDO Fund – Transfer to CIP, Transfer to Airport, Loan to Airport ($1,140,000) Set or Not Set Public Hearing for March 21, 2017 The Council will consider setting a public hearing on a proposed Ordinance that authorizes budget amendments totaling $3,005,000. The budget amendment appropriates BDO Retained Earnings for economic development activities geared toward enticing additional commercial air services to the Ogden-Hinckley Airport. Expenditures fund additional parking, FAA required reserves, and cover marketing and outreach efforts. During the fiscal year, the Council entertains requests for budget adjustments to allow for the following: 1. Entering grant or other special purpose revenues into the budget prior to expenditure. 2. Making mid-course corrections to avoid budget overruns. 3. Forwarding encumbrances from the previous fiscal year. 4. Other items dealing with special circumstances or opportunities. The Uniform Fiscal Procedures Act for Utah Cities requires that a public hearing be held on all budget adjustments where the budget of one or more funds is increased. (Utah Code Ann. §10-6-127.) Notice of the public hearing must be given seven days prior to the hearing. (Utah ---PAGE BREAK--- Page 2 of 4 Ogden City Council Meeting: March 7 2017 Code Ann. §10-6-113.) For year-end adjustments, the hearing must be held before June 30. February 28, 2017 The Council Office received an Administrative Transmittal requesting an FY2017 budget amendment totaling $3,005,000. March 7, 2017 The Council will hold a work session on the proposed FY2017 budget amendment. The Council will also consider setting a public hearing on the amendment for March 21, 2017. The proposal is to amend the FY2017 budget to provide for additional revenues in the amount of $3,005,000 not previously anticipated and to appropriate the additional funds for various expenditures. BDO Lease Revenue funds will be used to entice additional commercial air service to Ogden Hinckley Airport. Expenditures will be used to upgrade existing and provide additional parking, fund FAA required reserves, and cover marketing and outreach efforts. A summary of the Revenues and Appropriations is shown below: ---PAGE BREAK--- Page 3 of 4 Ogden City Council Meeting: March 7 2017 Notes Fund/ Source Amount Total CIP FUND Transfer from other funds 250,000 $ BDO Retained Earnings Sub-Total 250,000 $ Interfund Transfer 1,140,000 $ BDO Retained Earnings Loan from BDO Fund 50,000 $ BDO Retained Earnings Airport Parking Fees 125,000 $ From Additional Parking Added Sub-Total 1,315,000 $ BDO Fund Use of Retained Earnings 1,440,000 $ For Transfer Sub-Total 1,440,000 $ TOTAL 3,005,000 $ Notes Fund/ Source Amount Total CIP Fund Parking Improvements for Airport 250,000 $ Sub-Total 250,000 $ Airport Fund Airline Assurance Reserve 500,000 $ Required by FAA Travel Agency - Operation Reserve 500,000 $ Required by FAA Marketing 100,000 $ Air Starter - Equipment 50,000 $ Loan - BDO Retained Earnings Operational Increases - Wages 125,000 $ To Cover Additional Flights Familiarization Tours 40,000 $ Destination Sub-Total 1,315,000 $ BDO Fund Loan to Airport Fund 50,000 $ Air Starter Equipment Transfer to Other Funds 1,140,000 $ Commercial air Service Transfer to CIP Fund 250,000 $ Airport Parking Sub-Total 1,440,000 $ TOTAL 3,005,000 $ Summary of Revenues Summary of Appropriations ---PAGE BREAK--- Page 4 of 4 Ogden City Council Meeting: March 7 2017 BDO Lease Revenue – Fund Balance Analysis The Administration has provided information regarding the BDO Lease Revenue fund balance. There is another pending budget amendment (Ordinance 2017-8, Public Hearing set for March 21, 2017). This analysis also accounts for those pending appropriations: Note that the current pending and proposed appropriations will not exceed the FY2016 end-of-year fund balance. (The Council has made it a priority to spend only BDO Lease Revenues that were received or on- hand in previous fiscal years.) Please review the proposed budget amendment and explain how these appropriations will be used to promote additional commercial air service at Ogden Hinckley Airport. Council Staff Contact: Janene Eller-Smith, (801)629-8165 Fund Balance at 6/30/2016 9,123,737 $ FY2017 Budgeted Expenses (6,512,950) $ Balance Available at 7/1/16 2,610,787 $ First Quarter FY2017 Revenue 1,451,087 $ Second Quarter FY2017 Revenue 1,669,662 $ Total FY2017 Revenues To-Date 3,120,749 $ TOTAL CASH ON HAND 2/24/17 5,731,536 $ Pending Appropriations (Energey Audit, Prosecutor Software 115,000 $ Proposed Appropriations - Airport 1,440,000 $ 1,555,000 $ FUND BALANCE (IF ALL APPROPRIATIONS ARE APPROVED) 4,176,536 $ BDO Fund Balance as of February 24, 2017 ---PAGE BREAK--- OGDEN CITY TRANSMITTAL Date: February 24, 2017 To: Ogden City Council From: Lisa Stout, Comptroller RE: BUDGET OPENING ‐ FY 2017 Airport Proposal Staff Contact: Lisa Stout, Comptroller, ext. 8713 Recommendation: Set public hearing and adopt ordinance Documents: ‐ Ordinance ‐ Schedule A (Revenue) ‐ Revenue Detail Schedule ‐ Schedule B (Appropriations) ‐ Appropriation Detail Schedule Executive Summary This proposed action is to recognize the appropriations of new revenue or expected activities by Ogden City. In the CIP Fund, administration recommends a budget appropriation of $250,000, for a transfer from the BDO fund to the CIP fund. A new CIP is going to be proposed in FY2017 for improvements on City owned land near the airport terminal. The CIP brief will be submitted to the planning commission for approval and then to City Council for approval, before any budget appropriation authorized is made available in the City’s financial system. The intent is for this to be a paid parking lot, where any revenue received will be City general revenue. In the Airport Enterprise Fund, administration recommends a budget appropriation of $1,315,000 for support of commercial air service. The majority of this appropriation is a transfer from BDO, $1,140,000. This transfer is will be appropriated to fund an airline assurance reserve of $500,000 and an operational reserve for a travel agency of $500,000. The City has been working with other governments, to participate in funding these costs. Until participation agreements have been signed, the City administration proposes a use of City funds for these potential costs. Additionally, the transfer from the BDO fund is for marketing in the amount of $100,000, and funding for familiarization and kickoff tours in the amount of $40,000. The City will identify a City operating budget in the general fund, where funds are already appropriated that will be used to cover an additional $10,000 toward the familiarization and kickoff tours, making this total budget $50,000. City administration also recommends a loan from the BDO fund to the airport fund of $50,000 for a piece of equipment called an air start. A loan agreement will need City Council approval before any budget appropriation authorized is available in the City’s financial system. The repayment source for this loan will be airport revenue from increased parking fees and baggage fees. The existing parking lot at the airport has around 220 parking spaces with a daily parking fee of $3.50. With the additional flights and traveler using the parking lot, the City anticipates this revenue will grow. Administration recommends an increase to parking fee revenue budget of $125,000. These funds are included in this budget opening as an appropriation for temporary wage expenses for additional airport ---PAGE BREAK--- staffing, including police and fire support at the airport. This is a March 2017‐March 2018 appropriation, any funds not used at the end of FY17, would carry forward to FY18. The proposal for new air service at the Ogden Hinckley Airport submitted to Council by CED, in conjunction with this budget opening further outlines the used of funds proposed in this budget opening. In the BDO Fund, administration recommends a budget appropriation of $1,440,000 for transfer to the CIP fund of $250,000, for a transfer to the Airport fund of $1,140,000 and for a loan to the Airport fund of $50,000, for use as outlined above. The BDO lease revenue from prior years, exceeded budgeted expectations and is sufficient for these proposed appropriations. Detail of BDO retained earnings, after all transfers out were verified as complete for FY16: Background Council action is required for appropriation. Proposal Review and adopt ordinance. Fiscal Impact An increase to the City Budget of $3,005,000. BDO Fund Balance at 2/24/17 Fund Balance at 6/30/2016 9,123,737 $ Budgeted Expenses Available at 7/1/16 2,610,787 $ FY17 1st Quarter Rev FY17 2nd Quarter Rev Total Cash on Hand 2/24/17 5,731,536 $ Budget Opening ‐ Energy Audit Budget Opening ‐ Prosecutor Software Airport Proposal Balance 4,176,536 $ 1,451,087 1,669,662 (50,000) (1,440,000) (65,000) FY2016 (6,512,950) FY2017 ---PAGE BREAK--- 2017-12 ---PAGE BREAK--- ---PAGE BREAK--- Account Title Account Number Amount CIP FUND TRANSFERS FROM OTHER FUNDS 4100‐1‐84006 250,000 $ SUB TOTAL CIP FUND 250,000 $ AIRPORT ENTERPRISE FUND INTERFUND TRANSFER FROM OGDEN CITY FOR AIRLINE SUBSIDY 5130‐1‐8400* 1,140,000 $ LOAN FROM BDO FUND/CITY FOR AIRPORT EQUIPMENT 5130‐1‐82000 50,000 AIRPORT PARKING FEES 5130‐1‐44211 125,000 SUB TOTAL AIRPORT FUND 1,315,000 $ BDO FUND USE OF RETAINED EARN 5181‐1‐83000 1,440,000 $ SUB TOTAL BDO FUND 1,440,000 $ TOTAL REVENUE BUDGET 3,005,000 $ OGDEN CITY REVENUE SCHEDULE SCHEDULE BUDGET OPENING ‐ FY 2017 AIRPORT PROPOSAL Schedule 1 ---PAGE BREAK--- Item Title Amount CIP FUND TRANSFERS FROM OTHER FUNDS 250,000 SUB TOTAL CIP FUND 250,000 $ AIRPORT ENTERPRISE FUND INTERFUND TRANSFER FROM OGDEN CITY FOR AIRLINE SUBSIDY 1,140,000 LOAN FROM BDO FUND/CITY FOR AIRPORT EQUIPMENT 50,000 AIRPORT PARKING FEES 125,000 SUB TOTAL AIRPORT FUND 1,315,000 $ BDO FUND USE OF RETAINED EARN 1,440,000 SUB TOTAL BDO FUND 1,440,000 $ 3,005,000 $ OGDEN CITY REVENUE DETAIL SCHEDULE Description TOTAL REVENUE BUDGET Use of BDO retained earnings for an airport proposal for commercial air service. Additional revenue anticipated from parking fees at the airport between March 2017‐March 2018. Use of BDO retained earnings for a Parking Imrovement CIP project near the airport terminal. Appropriation of BDO retained earnings for transfers to the CIP fund in the amount of $250,000, to the airport fund in the amount of $1,140,000 and for a loan to the airport fund of $50,000. Use of BDO retained earnings as a loan to the airport fund for equipment. BUDGET OPENING ‐ FY 2017 AIRPORT PROPOSAL Rev. Detail Schedule 1 ---PAGE BREAK--- Account Title Account Number CIP # Amount CIP FUND PARKING IMPROVEMENTS FOR AIRPORT 4100‐1‐03‐551802‐33* 250,000 $ SUB TOTAL CIP FUND 250,000 $ AIRPORT ENTERPRISE FUND CITY FUNDED AIRLINE ASSURANCE RESERVE 5130‐1‐03‐551804‐NEW 500,000 $ 5130‐1‐03‐551804‐NEW 500,000 CITY FUNDED MARKETING 5130‐1‐03‐551804‐NEW 100,000 AIR STARTER ‐ EQUIPMENT 5130‐1‐03‐551804‐NEW 50,000 OPERATIONAL INCREASES ‐ WAGES 5130‐1‐03‐551801‐11104 125,000 CITY FUNDED FAMILIARIZTION TOURS 5130‐1‐03‐551804‐NEW 40,000 SUB TOTAL AIRPORT FUND 1,315,000 $ BDO FUND LOAN TO AIRPORT FUND 5181‐1‐0*‐550103‐LOAN 50,000 $ 5181‐1‐09‐550103‐41000 1,140,000 TRANSFER TO CIP FUND 5181‐1‐09‐550103‐41001 250,000 SUB TOTAL BDO FUND 1,440,000 $ TOTAL APPROPRIATIONS 3,005,000 $ OGDEN CITY BUDGET OPENING ‐ FY 2017 AIRPORT PROPOSAL APPROPRIATION SCHEDULE SCHEDULE TRANSFER TO AIRPORT ENTERPRISE FUND FOR AIRLINE SUBSIDY CITY FUNDED TRAVEL AGENCY ‐ OPERATIONAL RESERVE Schedule 1 ---PAGE BREAK--- Item Title Amount CIP FUND COMMUNITY AND ECONOMIC DEVELOPMENT PARKING IMPROVEMENTS FOR AIRPORT 250,000 SUB TOTAL CIP FUND 250,000 $ AIRPORT ENTERPRISE FUND COMMUNITY AND ECONOMIC DEVELOPMENT CITY FUNDED AIRLINE ASSURANCE RESERVE 500,000 COMMUNITY AND ECONOMIC DEVELOPMENT CITY FUNDED TRAVEL AGENCY ‐ OPERATIONAL RESERVE 500,000 COMMUNITY AND ECONOMIC DEVELOPMENT CITY FUNDED MARKETING 100,000 COMMUNITY AND ECONOMIC DEVELOPMENT AIR STARTER ‐ EQUIPMENT 50,000 COMMUNITY AND ECONOMIC DEVELOPMENT OPERATIONAL INCREASES ‐ WAGES 125,000 COMMUNITY AND ECONOMIC DEVELOPMENT CITY FUNDED FAMILIARIZTION TOURS 40,000 SUB TOTAL AIRPORT FUND 1,315,000 $ BDO FUND COMMUNITY AND ECONOMIC DEVELOPMENT LOAN TO AIRPORT FUND 50,000 COMMUNITY AND ECONOMIC DEVELOPMENT TRANSFER TO AIRPORT ENTERPRISE FUND FOR AIRLINE SUBSIDY 1,140,000 COMMUNITY AND ECONOMIC DEVELOPMENT TRANSFER TO CIP FUND 250,000 SUB TOTAL BDO FUND 1,440,000 $ 3,005,000 $ OGDEN CITY BUDGET OPENING ‐ FY 2017 AIRPORT PROPOSAL APPROPRIATION DETAIL SCHEDULE Description TOTAL APPROPRIATIONS The City will proposing a CIP for improvements to City land near the airport terminal for extra parking. CIP brief will be brought forward. Appropriation of transfer from BDO to airport for familiarization and kick off tours. Appropriation of transfer from BDO to airport as assurance to travel agency that Ogden City will support operations for 1 year. Agreements will be formalized with vendor. Appropriation of transfer from BDO to airport for marketing of airport prior the beginning of flights. Appropriation of Loan from BDO to airport for the purchase of an air‐start, which is a power source used to provide the initial rotation to start large diesel and gas turbine engines. Appropriation of BDO retained earnings to be transferred to the CIP fund. Appropriation of BDO retained earnings to be transferred to the airport fund. Appropriation of BDO retained earnings to be loaned to the airport fund. Appropriation of transfer from BDO to airport as assurance to airline that Ogden City will support operations for 1 year. Agreements will be formalized with vendor. Appropraition of additional parking revenue expected between March 2017‐March 2018 for use to hire additional part‐time employees. Appropriation Detail Schedule 1