Budget Amendment 2014-01

 

The City Council approved the fiscal 2014 budget under Ordinance 950 on June 17, 2013. That budget included projections on fiscal 2013 capital projects. There were unanticipated delays in some capital projects resulting in open contracts at year-end for which funds must be reapproved in the current fiscal year. Budget amendment 2014-01 is proffered to ensure adequate funds remain available for project completion in fiscal 2014. The attached authorization form summarizes the line items affected by this amendment. The remainder of this memorandum provides a brief description of each of the affected projects.General Fund 1The following projects were in process at June 30 but will not be completed until fiscal 2014. As a result, the spending authority ran out on the projects before they could be completed. The unspent funds increased the beginning fund balance beyond that anticipated in the 2014 budget so there are more than adequate funds to approve for completion without jeopardizing the approved 2014 spending plan for the City.David Craig Park [Acct #01-1251-7054], (County Grant)

Harford County’s 2013 budget included $75,000 to Havre de Grace for further improvements to David Craig Park. The fiscal 2014 budget anticipated this project would be completed by June 30 but the project had incurred only $15,200 by that date. You should note that the low cost is due primarily to the City using in-house personnel for much of the work. The County has agreed to allow the City to use the $59,800 in unspent funds to make greater improvements than anticipated by the initial award so the unspent balance need to be reauthorized in fiscal 2014. The source of the additional funding will be Harford County Parks & Recreation Grants [01-0001-48-75].


Financial, Personnel, and GPS system [Acct #01-1051-6501]

The City awarded the contract for a new accounting, planning, human resources, purchasing, and property management system in May 2013 and is still in the implementation phase of the contract. The current estimate is that the primary systems will be operational by the end of October. The 2014 approved budget anticipated completion by June 30. The project was initially approved for $285,000 in the 2013 approved budget and the projected total cost was $206,700 as reflected in the 2014 approved budget. The City incurred $157,600 in fiscal 2013 and $$49,100 needs to be re-authorized to complete the contract. The source of funds will be greater than expected beginning fund balance [01-0001-49-98] as the unexpended funds were closed to fund balance at the end of the prior year.

Digital Archival of City Hall Records [Acct #01-1091-6501]

The City has been digitizing archived records that were previously stored at the Opera House. They will then be available through the City’s electronic archival system for retrieval as needed. The contract for this service had an unfulfilled balance of $69,300 at June 30. The remaining funds to complete the contract, therefore, need to be reauthorized in the 2014 budget. It is expected that this contract will be completed in the next 60 days. As with the previous item, the source of funds will be greater than expected beginning fund balance [01-0001-49-98] as the unexpended funds were closed to fund balance at the end of the prior year.

Headwall Repair – Tydings Road [Acct #01-1251-7063]

The 2013 budget included $48,200 for repairing the head wall at the Tydings Road Culvert. The 2014 budget anticipated that the contract would be complete by the end of 2013.  As of June 30, however, $33,600 still remained unexpended on the contract and will need to be reauthorized in fiscal 2014. The contract is progressing and the funds should be spent before the end of the calendar year. The source of funds will be greater than expected beginning fund balance [01-0001-49-98] as the unexpended funds were closed to fund balance at the end of the prior year.

Water Treatment Plant Façade Improvement [01-1251-7064]

In late June, 2012, the City received $23,400 from Harford County which was their contribution towards the façade improvements to the joint Water Treatment Facility on St. John’s Street. As of June 30, $10,400 remained incomplete on the project and needs to be reauthorized in fiscal 2014. This project is nearing completion and all funds will be spent. The source of funds will be beginning fund balance [01-0001-49-98] as the grant funds were closed into the fund balance at fiscal 2012 year-end.

Jean Roberts Park [Acct #01-1251-7066] At June 30, the City had $5,800 remaining to complete the replacement of some of the decking at Jean Roberts Park. The contract is essentially completed but the remaining funds need to be reauthorized in fiscal 2014. The source of funds will be greater than expected beginning fund balance [01-0001-49-98] as the unexpended funds were closed to fund balance at the end of the prior year.

Marina Fund 8

Security System Upgrade [Acct #08-1839-6501]

The Marina installed security cameras at the Marina and the project was authorized by the 2013 budget. While $22,800 the contract was awarded and signed in 2013, the installation did not occur until July. As a result, the funding needs to be reauthorized in fiscal 2014. The source of funds will be the beginning fund balance [08-1809-49-01] as the unexpended funds were closed to fund balance at the end of the prior year.

Water & Sewer Fund 9

Polybuteline Service Replacement [Acct #09-1232-9032]

The City has been completing a multi-year effort to replace polybuteline water lines throughout the City. The City needs to eliminate the polybuteline water lines as the lines are becoming brittle and prone to breakage. The City entered into a multi-year contract to accomplish this project. At June 30, however, the City had $114,800 still open on its contract for work that was in-process and completed in July. I am proposing to increase the current year funding to reauthorize the completion of the contract. As with all but one of the above projects, the unspent funds were closed to fund balance. The source of funds will, therefore, be from [09-0001-49-01].

Please contact me, Jim Newby or George DeHority should you have any additional questions.