Subject:
Title
Fiscal Year 2023 Board Budget Amendment No. 2 to realign appropriation from various Reserves for unanticipated Fiscal Year 2023 expenditures in the Department of Administrative Services, Economic Development, Human Resources, Public Defender, and Supervisor of Elections. Also, realign appropriation for the American Rescue Plan Act and Capital Projects Funds for Capital Improvement Program projects.
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Recommended Action:
Recommended Action
Approval of the Fiscal Year 2023 Budget Amendment No. 2 pursuant to Florida Statute section 129.06(2)(b) realigning:
General Fund realignment of $4.7M from Reserves.
The Department of Administrative Services is requesting $2.7M due to:
An unbudgeted increase of $1.7M from Duke Energy and $295,257.00 in natural gas, water, and waste management costs
An unanticipated increase in repair and maintenance costs due to inflation in contracts ($239,930.00) and inflation in materials ($465,070.00)
Economic Development is requesting $981,800.00 consisting of:
$137,500.00 for a strategic plan contract begun in Fiscal Year (FY) 2022 without the funds carried forward into FY23 and $42,310.00 for unexpected retirement costs in FY23.
$802,000.00 is also requested from surplus land sales (Resolution 15-117) allocated for the Employment Sites Program (ESP) in FY15 that had not been recognized in prior year budgets.
Public Defender is requesting $43,800.00 for a one-time software upgrade that is better accomplished in the current fiscal year.
Supervisor of Elections is requesting a total of $964,000 for:
$124,000.00 to meet the personnel requirements of SB 7050.
$840,000.00 for six ballot scanners that have reached end of life and needed for the City of Seminole election in November 2023.
American Rescue Plan Act (ARPA) Fund realignment of $1.710M
Grand Canal Dredging (004607A) does not currently have a funding source and is ARPA eligible (ARPA Revenue Replacement funds).
Highpoint Russell Ave (006030A) is requesting $10,000.00 of prior-year funds that were not carried forward to meet current year estimates.
Capital Projects Fund realignment of $676,000.00
Baypointe Stormwater Conservation (003435A) transitioning from ARPA Funding to Penny for Pinellas Funding because of ARPA timing constraints.
Fleet Management Fund realignment of $1.7M from Reserves
Expenditures trending higher due to increased parts costs, higher vendor costs, and increased repairs required due to an aging fleet.
Risk Management Fund realignment of $1.4M from Reserves
Property and casualty insurance rates were $1.5M, or 16.8% above the original budget of $12.7M, discussed during the January 11, 2023, Board of County Commissioners meeting.
Health Benefits Fund realignment of $9.2M from Reserves
High value claims through April are 20.2% discussed during the May 9, 2023, Board of County Commissioners meeting.
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Strategic Plan:
Create a Quality Workforce in a Positive, Supportive Organization
1.3 Make workforce safety and wellness a priority.
1.4 Maintain a fair and competitive compensation package.
Ensure Public Health, Safety, and Welfare
2.1 Provide planning, coordination, prevention, and protective services to create and enhance a safe, secure, and healthy community.
2.2 Be a facilitator, convener, and purchaser of services for those in need.
Practice Superior Environmental Stewardship
3.3 Protect and improve the quality of our water, air, and other natural resources.
3.5 Foster a sustainable and resilient community that is prepared for sea level rise and a changing climate.
Foster Continual Economic Growth and Vitality
4.2 Invest in communities that need the most.
4.4 Invest in infrastructure to meet current and future needs.
Deliver First-Class Services to the Public and Out Customers
5.2 Be responsible stewards of the public’s resources.
5.3 Ensure effective and efficient delivery of County services and support.
5.4 Strive to serve the needs of all Pinellas County residents and customers
Summary:
Summary
This budget amendment realigns $4.7M from General Fund Reserves to the operating budgets of DAS, PCED, Public Defender, and SOE.
This budget amendment realigns $1.7M in the ARPA Fund and $676,000.00 in the Capital Projects Fund for Capital Improvement Program (CIP) projects.
This budget amendment realigns $1.7M from Fleet Reserves to the Fleet Management Fund’s operating budget.
This budget amendment realigns $1.4M from Risk Reserves to the Risk Finance Fund’s operating budget.
This budget amendment also realigns $9.2M from Health Benefit Reserves to the Health Benefits Fund’s operating budget.
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Background Information:
On January 31, 2023, the Pinellas County Board of County Commissioners (BCC) approved Resolution 23-7, which was the first amendment to the FY23 Adopted Budget. Approval of that resolution recognized unanticipated beginning fund balance and unanticipated project revenue in the aggregate amount of $111,459,463.00 in the General, Emergency Medical Service, STAR Center, Emergency Communication 911 System, Fire Districts, Surface Water Utility, Capital Projects, Airport Revenue and Operating, Solid Waste Renewal and Replacement, Water Revenue and Operating, Water Renewal and Replacement, Sewer Revenue and Operating, and Sewer Renewal and Replacement Funds and increases the respective cost centers and budgets accordingly. The resolution carried forward unanticipated lapsed appropriation into the FY23 Budget for expenditures that did not progress as anticipated in FY22 as follows: General Fund $1,028,119.00; Emergency Medical Service Fund $6,044,534.00; STAR Center Fund ($126,000.00); Emergency Communication 911 System Fund $341,560.00; Fire Districts Fund $1,866,730.00; Surface Water Utility Fund $1,573,000.00; Capital Projects Fund $79,416,000.00; Airport Revenue and Operating Fund $2,067,000.00; Solid Waste Renewal and Replacement Fund $4,128,000.00; Water Revenue and Operating Fund $209,000.00; Water Renewal and Replacement Fund $1,687,580.00; Sewer Revenue and Operating Fund $3,426,620.00; Sewer Renewal and Replacement Fund $9,797,320.00.
Approval of the FY23 Board Budget Amendment also realigned the Sustainability and Resiliency Division’s (SAR) FY23 operating budget, $201,257.90, from County Administrator to the Office of Resilience and Asset Management (ORAM). There is no impact to the General Fund for this portion.
On March 28, 2023, the BCC approved the second amendment to the FY23 Adopted budget. This amendment recognized that there was no additional revenue in FY23 to procure and offset the cost of the 25 TruNarc devices, the decline in Clerk revenue, the operating budget of BCC District 5, or Safety and Emergency Services’ (SES) ARPA related expenses. Approval of this budget amendment realigned $2.4M from General Fund Reserves to the cost centers of the Sheriff’s Office ($625,000.00), Clerk of the Circuit Court ($825,000.00), BCC District 5 ($8,950.00), and SES ($900,000.00) in FY23. Approval also reduced ARPA Fund’s Professional Services Account by $900,000.00 and increased ARPA’s Transfer to General Fund Account by $900,000.00.
The Office of Management and Budget (OMB) requests the BCC consider and approve the third amendment to the FY23 Adopted Budget. Approval of this amendment will result in the following realignments:
General Fund (0001):
DAS is requesting $2.7M due to an unanticipated increase of $1.7M from Duke Energy and a $295,257.00 increase in natural gas, water, and waste management costs (not-to-exceed contract total with Waste Management Inc. increased 13.2% in FY23). DAS is projected to be over budget by $1.0M, or 31.6% for repairs and maintenance due to it addressing more deferred maintenance in FY23 and unanticipated inflationary costs for materials and parts. Contracts are also expected to be $521,102.00, or 12.7% over budget due to higher vendors costs and the addition of new services. The department is projected to have $1.2M in personnel lapse funding, which will help to offset the total impact of increases.
Economic Development (PCED) is requesting $137,500.00 for a strategic plan contract whose funding was not captured in Resolution 23-7. PCED is also requesting $42,310.00 due to the hiring of an employee over budget by $32,310.00 and $10,000.00 for a retirement payout that occurred earlier than the original plan date in FY24. Surplus lands were sold in 2016 for a total of $802,000.00 and per Resolution 15-117, were to be allocated for the Employment Sites Program (ESP) upon establishment. ESP is now prepared to accept the funds.
Public Defender is requesting $43,800.00 for a one-time update of a software to allow its system to be integrated with internal and external stakeholders. It will also allow the case management system to receive information and case documents directly from external sources.
Supervisor of Elections (SOE) is requesting $124,000.00 to meet the personnel requirements of SB 7050 (voting eligibility verification). SB 7050 will require SOE to review people convicted of felonies on a weekly basis and determine if they are still eligible to vote. Based on a time study, it is estimated that 130.0K to 150.0K will be reviewed weekly and vetting takes approximately one hour per individual. This time study recommended 4.0 FTE to manage this unfunded mandate and the request in this amendment is for the remaining quarter of FY23 only. SOE is also requesting $840,000.00 for six ballot scanners that have reached end of life (10 years) and are needed for the City of Seminole election in November 2023.
ARPA Fund (1045) and Capital Projects Fund (3001):
CIP is requesting the realignment of $2.4M from the ARPA and Capital Projects Funds for CIP projects. Project 004607A Grand Canal Dredging currently does not have a funding source - it has been determined this is an eligible project for ARPA funding. The $1.7M requested is to cover prior years' expenditures of $200,000.00 and FY23 estimate and FY24 budget of $1.5M. Project 006030A Highpoint: Russell Avenue Connection would have had $10,000.00 brought forward from FY22 if a carry forward amendment was required. This amendment is requesting that $10,000.00 ARPA funding be realigned to equal their FY23 estimate of $53,000.00. Project 003435A Baypointe Stormwater Conservation Area was all ARPA funded and is shifting to Penny for Pinellas funding. Only a small portion will be ARPA funded. The $676,000.00 is to cover the Penny for Pinellas funded estimate for FY23.
Fleet Management Fund (5002)
DAS is requesting the realignment of $1.7M from Fleet Management Fund’s Reserves to Fleet Management’s operating budget due expenditures for parts trending higher. This is due to increased vendor and individual part costs and an increased demand for repairs due to an aging fleet.
Risk Management Fund (5005)
DAS is also requesting the realignment of $1.4M from Risk Management Fund’s Reserves to Risk Management’s operating budget. Property and casualty insurance rates were $1.5M, or 16.8% above the original budget of $12.7M. This was initially shared with the BCC on January 11, 2023.
Health Benefits Fund (5006)
Human Resources is requesting the realignment of $9.2M from the Health Benefits Fund’s Reserves to Health Benefits’ operating budget. This is due to an unanticipated increase of 20.2% for high value claims and an increase of 14.6% for weekly claims for medical and pharmacy through April.
Fiscal Impact:
Upon approval, the following fiscal impacts will occur:
Reduce General Fund Reserves by $4.7M. The following operating budgets will increase:
• Department of Administrative Services: $2.7M
• Economic Development: $1.0M
• Public Defender: $43,840.00
• Supervisor of Elections: $964,000.00
Realign $2.4M in the ARPA and Capital Project Funds for CIP projects.
Reduce the Fleet Management Fund Reserves by $1.7M and increase the Fleet Management Fund operating budget by $1.7M.
Reduce the Risk Financing Fund Reserves by $1.4M and increase Risk Finance Fund’s operating budget by $1.4M.
Reduce the Employee Health Benefits Fund Reserves by $9.2M and increase Employee Health Benefit operating budget by $9.2M.
Staff Member Responsible:
Chris Rose, Director, Office of Management and Budget
Shane Kunze, Budget and Financial Management Analyst, Office of Management and Budget
Partners:
N/A
Attachments:
FY23 Budget Amendment