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Ordinance No. 2024-15 2024 1st Budget AmendmentPage 1 of 2 ORDINANCE NO. 2024-15 AN ORDINANCE of the City of Bainbridge Island, Washington, amending the 2023-2024 biennial budget and associated provisions of the 2023-2028 Capital Improvement Plan and providing for uses not foreseen at the time the budget was adopted. WHEREAS, on November 8, 2022, the City Council adopted the 2023-2024 biennial budget via Ordinance No. 2022-19; and WHEREAS, on March 14, 2023, the City Council adopted funding for carryover items for work funded in 2022 but to be performed in 2023 via Ordinance No. 2023-07; and WHEREAS, on June 27, 2023, the City Council adopted a revised budget for 2023 via Ordinance No. 2023-15; and WHEREAS, on November 14, 2023, the City Council adopted mid-biennium modifications to the final budget of the City for the fiscal year ending December 31, 2024, which is the second year of the biennial budget via Ordinance No. 2023-22; and WHEREAS on December 12, 2023 the City Council adopted a second revised budget for 2023 via Ordinance No. 2023-23; and WHEREAS on February 27, 2024, the City Council adopted an ordinance providing for funding carryover items for work funded in 2023 to be performed in 2024 via Ordinance No. 2024-05; and WHEREAS, a number of situations have occurred during 2024 which require the City to expend money on items, projects, and categories not included in the 2024 budget and to adjust the 2023-2028 Capital Improvement Plan accordingly. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. The 2024 budget is hereby amended as shown in the attached Exhibit A (Crosswalk Summary by Fund) attached hereto and made a part hereof by this reference. Section 2. Attached hereto as Exhibit B, and hereby incorporated fully into this ordinance, are the totals of budgeted expenditures for each separate fund and the aggregate totals for all such funds combined in summary form for the revised budget. Section 3. In that some of the budget expenditures that are the subject of this ordinance directly relate to the City’s 2023-2028 Capital Improvement Plan, the project pages in the 2023- 2028 Capital Improvement Plan for the specific projects that are the subject of this ordinance are amended to read as shown in the attached Exhibit C. Page 2 of 2 Section 4. The City’s Finance Director is authorized and directed by this ordinance to make the necessary changes to the 2023-2024 biennial budget and the 2023-2028 Capital Improvement Plan. The Finance Director is further directed to make sufficient interfund equity transfers from the appropriate funds to cover the added amounts authorized by this ordinance. Section 5. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 6. This ordinance shall take effect and be in force five (5) days from its passage and publication as required by law. PASSED by the City Council this 11th day of June 2024. APPROVED by the Mayor this 11th day of June 2024. Joe Deets, Mayor ATTEST / AUTHENTICATE: Christine Brown, MMC, City Clerk FILED WITH THE CITY CLERK: June 7, 2024 PASSED BY THE CITY COUNCIL: June 11, 2024 PUBLISHED: June 14, 2024 EFFECTIVE DATE: June 19, 2024 ORDINANCE NO: 2024-15 Attached: Exhibit A – Crosswalk Summary by Fund Exhibit B – Table 1 - Summary by Fund and Department Exhibit B – Table 2 – Summary of Technical/Administrative Adjustments Exhibit B – Table 3 - Supporting Transfers Exhibit C – Updated Capital Improvement Plan Project Pages Exhibit A - Crosswalk by Fund ORDINANCE NO. 2024-15 2024 REVISED BUDGET Supporting Transfers (See Ord Section 5) Ord. 2024-15 Technical Amendments Ord. 2024-15 Operating and Capital Amendments 2023 REVISED BUDGET 001 GENERAL FUND 31,534,880 2,120,000 (1,085,884) 330,512 32,899,508 101 STREET FUND 4,534,351 - 31,500 70,583 4,636,434 103 REAL ESTATE EXCISE TAX FUND 3,227,064 191,750 - - 3,418,814 104 CIVIC IMPROVEMENT FUND 374,700 - - 50,000 424,700 108 AFFORDABLE HOUSING FUND 2,230,565 - (118,066) - 2,112,499 171 TRANSPORTATION BENEFIT FUND 615,318 15,000 - - 630,318 173 TRANSPORTATION IMPACT FEE FUND - - - - - 201 GO BOND FUND 927,665 - - - 927,665 203 LID BOND FUND - - - - - 301 CAPITAL CONSTRUCTION FUND 16,809,237 - 980,000 145,000 17,934,237 401 WATER FUND 17,974,444 - 21,850 177,000 18,173,294 402 SEWER FUND 15,245,962 - 49,800 263,000 15,558,762 403 STORM & SURFACE WATER FUND 7,161,738 - 20,200 28,000 7,209,938 407 BUILDING & DEVELOPMENT FUND 3,412,319 - 100,600 74,500 3,587,419 501 EQUIPMENT RENTAL & REVOLVING FUND 1,929,719 - - - 1,929,719 TOTAL EXPENDITURES 105,977,964 2,326,750 1,138,595 109,443,309 CITY FUNDS 2024 EXPENDITURES CITY OF BAINBRIDGE ISLAND - 2024 REVISED BUDGET SUMMARY BY FUND 2024 BUDGET AMENDMENT #1 Presented to City Council Approved on June 11, 2024 Exhibit B Table 1 SUBJECT DESCRIPTION FUND / Department Revenue Change amount requested Change to Appropriation One-Time or On- going? This change increases budget authority for indigent defense services with Valley Defenders which is a new contract. Council approved March 26, 2024 Professional services contract for short-term rentals On February 13, 2024, the City Council adopted a short-term rental Ordinance 2024-02. Ordinance 2024-02 establishes a registration system to track the number of short term rentals, ensures the operators pay city taxes and fees, and reinforces existing nuisance regulations, going into effect September 30, 2024. Deckard Technologies, Inc. response to the City's proposal was the lowest and best from those that met all requirements of the proposal. -$ Council approved April 23,2024 The City of Bainbridge Island owns 60 acres of public farmland, 20 of which are leased to farmers through 10 separate long-term agreements. Since 2012, the public farmland, was leased to Friends of the Farms (Friends). Friends and the City are discussing terminating this lease at or near the end of 2023. In order to provide continuing management services to the farmers, staff proposes to approve the attached agreement with Brian Stahl. Council approved December 12, 2023 Department of Ecology Education and Outreach for Waste Reduction through the Waste Reduction and Recycling Education Grant Program Council approved January 23, 2024 Washington State Department of Commerce funded grant which allows the City to provide rebates and incentives to households and small businesses to purchase and install high-efficiency electric equipment and appliances. This funding will be used for the City's Heat Pump Pilot program, supporting up to fifteen heat pump installations in 2024 for low and moderate income households, a priority action identified by the 2020 Climate Action Plan. Council approved May 14, 2024 This change will increase the FTE authority from .60 to 1.0 FTE. Council approved March 26, 2024 Contract with new janitorial service provider necessitates increase in existing budget. Council approved April 9, 2024 Technical Budget Adjustments (See Table 2)(1,085,884)$ TOTAL GENERAL FUND EXPENDITURE INCREASE 131,253$ (755,372)$ Annual roads striping cost increase Council approved April 23,2024 Technical Adjustments Technical Budget Adjustments (See Table 2)31,500$ TOTAL STREET FUND EXPENDITURE INCREASE -$ 102,083$ Council reviewed and approved the funding recommendations presented by the Lodging Tax Advisory Committee in the amount of $400,000 for 11 total organizations. This requires an increase in budget from $350,000 to $400,000 for 2024. Council approved January 23, 2024 TOTAL CIVIC IMPROVEMENT FUND EXPENDITURE -$ 50,000$ Technical Adjustments Technical Budget Adjustments (See Table 2)(118,066)$ TOTAL AFFORDABLE HOUSING FUND -$ (118,066)$ WA State Transportation Improvement Board (TIB). New TIB grant replaces reductions in previously awarded Federal grants that were reduced by 25% and 50% respectively. This leaves a funding gap of (61,750) to be filled by transfer from tax supported funds. Council approved January 23, 2024 Add budget for 100% design/permitting for pedestrian-bike boardwalk. Council approved December 12, 2023 Eagle Harbor/Wyatt State Grant acceptance Eagle Harbor/Wyatt Capital / Public Works 130,000$ Increase One-Time-$ Capital / Public Works -$ No Change One-Time(61,750)$ Increase50,000$ -$ Civic Improvement / General Government One-Time Increase Ongoing-$ Exhibit B to Ordinance No. 2024-15 Farm Agreement Services Manager General/Executive 60,000$ Increase Ongoing Waste Reduction & Recycling Education Grant General/Executive 53,036$ Increase One-Time -$ 39,777$ General/Executive -$ 40,000$ Increase Ongoing Kitsap Law Group for indigent defense services OngoingIncrease30,000$ General/Executive State Home Electrification and Appliance Rebate (HEAR) Grant General/Executive 91,476$ 91,476$ Increase One-Time -$ OngoingIncrease Janitorial Services General / Public Works 12,000$ Increase One-Time Evidence Technician position from .60 FTE to full time General/Public Safety -$ 44,000$ Annual road striping Streets/Public Works 70,583$ LTAC Funding Increase Ordinance_No._2024-15_Exhibit B 1 of 4 SUBJECT DESCRIPTION FUND / Department Revenue Change amount requested Change to Appropriation One-Time or On- going? Increase in construction contract with Liden Land Development and Excavation Inc. The increase is to cover the costs of contract project management and contingency. Council approved April 23, 2024 Technical Adjustments Technical Budget Adjustments (See Table 2)980,000$ TOTAL CAPITAL CONSTRUCTION FUND EXPENDITURE INCREASE 1,125,000$ Updated Fee study. Costs will be split among Water (20%), Sewer (40%) and SSWM (40%). Estimated $70,000 including contingency. Construction contract with Empire Well Drilling LLC in support of the Fletcher Bay Rehabilitation contract Council approved February 13, 2024 Technical Adjustments Technical Budget Adjustments (See Table 2)21,850$ TOTAL WATER FUND EXPENDITURE INCREASE -$ 198,850$ City staff are requesting the City Council consider authorizing the City Manager to award the Wastewater Treatment Plant Regulatory Air Gap Project construction contract to Gary Harper Construction, Inc. in the amount of $292,766.23, from the City's Sewer Utility Fund, and approve a related budget amendment of $145,000. Council approved January 23, 2024 Increase in capital to complete project from a change in scope for the Woodward Lift Station Council approved April 23, 2024 Authorize a budget amendment for the Wastewater Treatment Plant Regulatory Variable Frequency Drive project for Bainbridge Island Electric Council approved March 12, 2024 Updated Fee study. Costs will be split among Water (20%), Sewer (40%) and SSWM (40%). Estimated $70,000 including contingency. Technical Adjustments Technical Budget Adjustments (See Table 2)49,800$ TOTAL SEWER FUND -$ 312,800$ Updated Fee study. Costs will be split among Water (20%), Sewer (40%) and SSWM (40%). Estimated $70,000 including contingency. Technical Adjustments Technical Budget Adjustments (See Table 2)20,200$ TOTAL STORMWATER FUND EXPENDITURE INCREASE -$ 48,200$ Additional Increase needed for higher than budgeted insurance costs. Technical Adjustments Technical Budget Adjustments (See Table 2)100,600$ TOTAL BUILDING AND DEVELOPMENT FUND EXP INCREASE -$ 175,100$ TOTAL BUDGET INCREASES 200,756$ 1,138,595$ TOTAL TECHNICAL ADJUSTMENTS -$ TOTAL BUDGET AMENDMENTS 131,253$ 1,138,595$ Increase One-Time -$ 80,000$ Increase Increase One-Time-$ Insurance Cost Increase BDS/General Gov -$ Fee Study - Water/Sewer/SSWM Sewer/Public Works 28,000$ Fee Study - Water/Sewer/SSWM SSWM/Public Works 28,000$ -$ 74,500$ Increase One-Time One-Time One-Time Wastewater Treatment Plant Regulatory Air Gap Project Sewer/Public Works Wastewater Treatment Plant VFD Sewer/Public Works Increase145,000$ -$ SCADA upgrade Sewer/Public Works -$ 10,000$ Increase One-Time Fee Study - Water/Sewer/SSWM Water/Public works 14,000$ Increase-$ One-Time -$ Construction contract for Fletcher Bay Well rehabilitation Water/Public works 163,000$ Increase One-Time Grow Avenue Traffic Calming Capital/Public Works -$ 15,000$ Increase One-Time Ordinance_No._2024-15_Exhibit B 2 of 4 Exhibit B Table 2 SUBJECT DESCRIPTION FUND / Department Revenue Change amount requested Change to Appropriation One-Time or On- going? Move $131,200 out of General Fund and Distribute to various other Funds due to difference in actual insurance allocation vs budgeted allocation. Move existing facility maintenance budget to Capital for completion of TSJC capital project. Council approved 2/27/2024 Move a portion of the Management Analyst (formerly Housing Specialist) budgeted labor costs from the Affordable Housing Fund. 70% General Fund, 30% Affordable Housing Reallocate a portion of the overall budget to the Water and SSWM funds as indicated by the cost allocation manual. Use existing vacancy savings and transfer budget appropriation from General to BDS fund for new fee study. TOTAL GENERAL FUND IMPACT (1,085,884)$ Street Fund portion of insurance increase - move from General Fund TOTAL STREET FUND IMPACT 31,500$ Move a portion of the Management Analyst (formerly Housing Specialist) budgeted labor costs from the Affordable Housing Fund. 70% General Fund, 30% Affordable Housing TOTAL AFFORDABLE HOUSING FUND IMPACT (118,066)$ Combine 2 Public Works Yard Improvement projects from the 2023- 2028 CIP into a single project. This includes: PW Yard Inventory Storage Facility, PW Yard Truck Storage Pole Building. New project name will be "Public Works Storage Facility Improvements". Move PRJ 01230: PW Truck Pole Building into PRJ 01229 Move Operating Budget from General Fund to Capital for completion of Ted Spearman Justice Center capital work. Council approved 2/27/2024 TOTAL CAPITAL CONSTRUCTION FUND IMPACT 980,000$ Water Fund portion of insurance increase - move from General Fund Reallocate a portion of the overall budget to the Water and SSWM funds as indicated by the cost allocation manual. TOTAL WATER FUND IMPACT 21,850$ Sewer Fund portion of insurance increase - move from General Fund TOTAL SEWER FUND IMPACT 49,800$ SSWM Fund portion of insurance increase - move from General Fund Reallocate a portion of the overall budget to the Water and SSWM funds as indicated by the cost allocation manual. TOTAL SSWM FUND IMPACT 20,200$ BDS Fund portion of insurance increase - move from General Fund Use existing vacancy savings and transfer budget appropriation from General to BDS fund for new fee study. TOTAL BDS FUND IMPACT 100,600$ TOTAL TECHNICAL & ADMINISTRATIVE ADJUSTMENTS -$ (112,634)$ Decrease TECHNICAL & AMINISTRATIVE BUDGET ADJUSTMENTS - NO ADDITIONAL APPROPRIATION REQUESTED (980,000)$ (85,000)$ Move operating budget to TSJC Capital project Management Analyst Water Quality and Flow Monitoring Adjustment Affordable Housing / Executive (118,066) Combine PW Yard Improvement Projects $ - $ - General / Public Works Decrease One-Time (7,750)$ Decrease General / Executive 118,066 Increase One-Time One-TimeGeneral / Public Works One-Time Increase One-Time One-TimeDecrease Decrease One-Time Insurance Costs SSWM / General Gov 14,000$ Increase One-Time-$ -$ Increase Insurance Costs Sewer / General Gov 49,800$ -$ 112,634$ Insurance Costs Water / General Gov 20,300$ Increase Management Analyst Capital / Public Works Move operating budget to TSJC Capital project Capital / Public Works 980,000$ Combine PW Yard Improvement Projects - Truck Pole Building Capital / Public Works Increase One-Time Increase -$ Water Quality and Flow Monitoring Adjustment SSWM / Public Works 6,200$ Increase One-Time Insurance Costs BDS / General Gov 15,600$ Increase One-Time-$ -$ -$ Fee Study BDS/ Planning 85,000$ One-Time-$ One-Time Water Quality and Flow Monitoring Adjustment Water / Public Works 1,550$ Increase One-Time -$ -$ Insurance Costs Street / General Gov 31,500$ Increase One-Time -$ Fee Study Insurance Costs General / General Gov (131,200)$ Decrease One-Time $ - General / Finance One-Time -$ $ - $ - Ordinance_No._2024-15_Exhibit B 3 of 4 Exhibit B Table 3 SUBJECT DESCRIPTION FUND / Department Change to Appropriation One-Time or On- going? ARPA affordable housing set aside transfer to AH fund Move to Capital Move to Capital Fund for a)grant funding change shortfall of $61,750 and b) Council requested design work costing an additional $130,000. Move to Capital TOTAL SUPPORTING TRANSFERS 2,326,750$ REET/Public Works Increase One-time Grow Ave Traffic Calming Transportation Benefit Fund/ Public Works Increase One-time Eagle Harbor/Wyatt Way SUPPORTING TRANSFERS TSJC Capital Support General Fund / Public Works Increase One-time General Fund/Executive Increase One-timeARPA project Change amount requested 15,000$ 191,750$ 980,000$ 1,140,000$ Ordinance_No._2024-15_Exhibit B 4 of 4 Exhibit C to Ordinance No. 2024-15 Project: Fletcher Bay well rehabilitation and pump replacement Number: 01244 Location: Fletcher Bay Description: This project will rehabilitate one of the primary water source wells for the Winslow Water System at the Fletcher Bay well site. The project includes replacement of the well pumps, which are over 30 years old, and past their design life. Benefit: Improve water system reliability and redundancy. Schedule: YRI: Design/Construction Prior 2029- Yrs. 2023 2024 2025 2026 2027 2028 2042 Total FUNDING SOURCES (1000's) General Fund - - - - - - - - - Water Fund - 250 313 - - - - - 563 Sewer Fund - - - - - - - - - SSWM Fund - - - - - - - - - Federal Grant - - - - - - - - - State Grant - - - - - - - - - Sub -total - 250 313 - - - - - 563 FUNDING USES (1000's) Proj. Management - 12 6 - - - - - 18 Design/construction - 238 307 - - - - - 545 Sub -total - 250 313 - - - - - 563 Prior 2029- Yrs. 2023 2024 2025 2026 2027 2028 2042 Total Operating - - - - - - - - - Debt Service - - - - - - - - - Sub -total - - - - - - - - - Project: Public Works Inventory Storage Facility Number: 01229 Location: Hidden Cove PW Yard r._ Description: This project will provide dry storage for critical operations and maintenance small equipment and parts. Benefit: The project will improve current sub -standard size and conditions of Operations and Maintenance storage facilities. Schedule: YR I: Procurement/Construction 2029- Prior Yrs. 2023 2024 2025 2026 2027 2028 2042 Total FUNDING SOURCES (1000's) General Fund - 3 323 - - - - - 325 Water Fund - - - - - - - - - Sewer Fund - - - - - - - - - SSWM Fund - - - - - - - - - Federal Grant - - - - - - - - - State Grant - - - - - - - - - Sub -total - 3 323 - - - - - 325 FUNDING USES (1000's) Project Management - 3 12 - - - - - 15 Design/construction - - 308 - - - - - 308 Sub -total - 3 320 - - - - - 323 2029- Prior Yrs. 2023 2024 2025 2026 2027 2028 2042 Total Operating - - - - - - - - - Debt Service - - - - - - - - - Sub -total - - - - - - - - - Amounts in thousands Project: Police and Municipal Court Facility Location: 8804 Madison Number: 00724 Description: This project provides for the replacement of the Police Station and relocation of the Municipal Court. Benefit: Replacement Police facility will provide adequate space for current and future departmental needs, while correcting numerous space, structural, and security deficiencies in the current facility. New Court facility will replace existing leased space, which marginally meets current requirements and will create operational efficiencies by being co -located with the Police Station. Schedule: Construction in 2023. 2029- Prior Yrs. 2023 2024 2025 2026 2027 2028 2042 Total FUNDING SOURCES (1000's) General Fund 10,601 1,200 980 - - - - - 12,781 Water Fund - - - - - - - - - Sewer Fund - - - - - - - - - SSWM Fund - - - - - - - - - REET 1,719 - - - - - - - 1,719 Long -Term Debt 8,000 - - - - - - - 8,000 Sub -total 20,320 1,200 980 - - - - - 22,500 FUNDING USES (1000's) Project Management 200 - - - - - - - 200 Predesign 450 - - - - - - - 450 Acquisition 8,975 - - - - - - - 8,975 Design 672 - - - - - - - 672 Construction 10,023 1,200 980 - - - - - 12,203 Sub -total 20,320 1,200 980 - - - - - 22,500 000 Estimated Impact on Future Operating Budget (I 2029- Prior Yrs. 2023 2024 2025 2026 2027 2028 2042 Total Operating 100 100 100 100 100 100 1,400 2,000 Debt Service 482 510 508 510 511 507 507 6,620 10,155 Sub -total 482 610 608 610 611 607 607 8,020 12,155 Amounts in thousands