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Home My WebLink AboutBill No. 76-22 Q4 2022 Additional Appropriation Ordinance pvTH`4N 1200N COUNTY-CITY BUILDING svp4 4d` PHONE 574.235.9216 227 W. JEFFERSON BLVD. M1 U��S''.1 I /�X , 574.235 9928 e SOUTH BEND,INDIANA 46601-1830 h K C..11w a —� PF.ACF --"- �_,, less NOV 21 2022 CITY OF SOUTH BEND, IN JAMES MUELLER, MAY• DEPARTMENT OF ADMINISTRATION ANI bi AWN M.JOTHNES BENDI IN November 21,2022 Ms. Sharon McBride,President City of South Bend Common Council 227 W.Jefferson Boulevard,4th Floor South Bend,Indiana 46601 RE: Q4 2022 Additional Appropriation Ordinance Dear President McBride, During the past several years, it has been the practice of the City of South Bend to request department heads,fiscal staff and city administration to conduct an extensive review of the status of compliance with the adopted city budget and propose necessary adjustments periodically throughout the year. For 2022,we plan to propose adjustments during four time periods—March,June, September and December. Based on our budget review,we are submitting the enclosed additional appropriation ordinance for your consideration. I will present this bill to the Common Council at the appropriate committee and Council meetings. It is requested that this bill be filed for 1st reading on November 28,2022,with 2nd reading,public hearing and 3rd reading scheduled for December 12,2022. Thank you for your attention to this request. If you should have any questions,please feel to contact me at 574-235-9822. Regards, /36"-.E . Daniel T. Parker City Controller 1 1...- Alif I 1C2 City of South Bend,Indiana NOV 21 2022 Q4 2022 Budget Adjustments-Additional Appropriations L_____--___. (increase or decrease in total fund expenditures) DAWN M.JONTS CITY CLE K. SOUTH BEND, IN Account# Fund Department Division Account Budget Adjustment Unanticipated Expenses 101-08-080-080-422001— General Fund _Police Department Police Department Supplies-Operating-CS.Gasoline 100,000 101-08-080-080-431001— General Fund Police Department Police Department Services&Charges-Professional-Legal Services 100,000 Rationale: Increased costs of gasoline in 2022-budgeted at roughly$2.50 per gallon in 2022;actual was over$4 per gallon for much of the year.Increased legal costs are primarily due to costs of outside counsel for certain ongoing legal cases. 101-09-090-090-422000— General Fund Fire Department j Fire Department 1 .Supplies-Operating-Other Operating Supplies 170,000 Rationale: Increased supply costs related to new recruits and lateral transfers hired in the second half of the year. Fire was also impacted by the cost of inflation for medical supplies 101-09-090-090-431001-- General Fund Fire Department Fire Department Services&Charges-Professional-Legal Services 150,000 101-09-090-090-436000-- General Fund Fire Department Fire Department Services&Charges-Repairs Sr Maint-Other R&M 300,000 Rationale: Increased legal expenditures,repair and maintenance costs,and education/training costs. Inflation also impacted all these costs. 101-09-092-092-431014— General Fund Fire Department EMS Services&Charges-Professional-Collection Costs 20,000 Rationale: Bank&Credit Card fees over-budget due to revenue over budget 201-11-201-201-410003-- Parks&Recreation Venues Parks&Arts Park Maintenance Personnel-Salaries&Wages-Permanent Part Time 90,000 201-11-201-201-422001— Parks&Recreation Venues Parks&Arts Park Maintenance Supplies-Operating-C.S.Gasoline 103,000 201-11-201-201-431019— Parks&Recreation Venues Parks&Arts Park Maintenance Services&Charges-Professional-Security Services 63,000 201-11-201-201-435002— Parks&Recreation Venues Parks&Arts Park Maintenance Services&Charges-Utility Services-Natural Gas 120,000 201-11-201-201-435004-- Parks&Recreation Venues Parks&Arts Park Maintenance Services&Charges-Utility Services-Water 45,000 201-11-201-201-436001-- Parks&Recreation Venues Parks&Arts Park Maintenance Services&Charges-Repairs&Maint-Building R&M 100,000 201-11-201-204-435002— Parks&Recreation Venues Parks&Arts Park Maintenance Services&Charges-Utility Services-Natural Gas 3,100 Rationale: Increased costs in utilities and gasoline,stemming primarily from inflation and increased supply costs across the City. 201-11-202-220-435001— Parks&Recreation Venues Parks&Arts Golf Courses Services&Charges-Utility Services-Electric 50,000 201-11-202-221-422003— Parks&Recreation Venues Parks&Arts Golf Courses Supplies-Operating-Gasoline 110,000 201-11-202-221-422010-- Parks&Recreation Venues Parks&Arts Golf Courses Supplies-Operating-Plants Chemicals Seed&Fertilizer 60,000 201-11-202-221-423000— Parks&Recreation Venues Parks&Arts Golf Courses Supplies-Repair&Maint-Other R&M Supplies 50,000 201-11-202-222-436000— Parks&Recreation Venues Parks&Arts Golf Courses Services&Charges-Repairs&Maint-Other R&M 35,000 Rationale: Increased costs in utilities and gasoline,stemming primarily from inflation and increased supply costs across the City.This increased cost is also stemming from higher-than-expected activity at the golf courses,which resulted in higher-than-budgeted revenue as well. I " Cf? City of South Bend,Indiana NOV L I ZOZL Q4 2022 Budget Adjustments-Additional Appropriations + (increase or decrease in total fund expenditures) DAWJ M. JONES I CITY CLE Snt ITH BEND, IN Budget Account# Fund Department Division Account Adjustment 201-11-203-233-431000-- Parks&Recreation Venues Parks&Arts Recreational Experiences Services&Charges-Professional-Other Professional Svcs 30,000 201-11-203-236-433003-- Parks&Recreation Venues Parks&Arts Recreational Experiences Services&Charges-Printing&Ad-Promotional 40,000 Rationale: Increased costs of events and more events being held after the pandemic.This,coupled with rising costs,led to a greater need for services budget than anticipated. 201-11-205-231-433003— Parks&Recreation Venues Parks&Arts Development&Promotion Services&Charges-Printing&Ad-Promotional 40,000 Rationale: Best Week Ever was much larger in scope than in previous years,and,like in all areas of the City,the costs for related goods and services were much higher than we anticipated. 201-11-206-273-445008-- 1 Parks&Recreation Venues Parks&Arts Park Projects&Capital Capital Outlay-Machinery&Equip-Other Equipment 29,122 Rationale: Purchase of a tree spade(a machine used to move trees from one location to another).This purchase is covered by a donation made to the VPA Foundation. 202-06-602-503-422001— Motor Vehicle Highway Public Works Streets&Sewers Supplies-Operating-CS.Gasoline 126,375 202-06-602-505-422001— Motor Vehicle Highway Public Works Streets&Sewers Supplies-Operating-CS.Gasoline 8,625 Rationale: Increased costs of gasoline in 2022-budgeted at roughly$2.50 per gallon in 2022;actual was over$4 per gallon for much of the year. 220-08-080-088-431000— Law Enforcement Continuin€Police Department Police Department f Services&Charges-Professional-Other Professional Svcs 25,000 Rationale: Additional training costs due to an influx of new officers in 2022.Nineteen recruits and lateral transfers were added to the staff in mid-October 222-04-403-450-422001— Central Services Administration&Finance Central Services Supplies-Operating-C.S.Gasoline 1,300,000 222-04-403-450-423010-- Central Services Administration&Finance Central Services Supplies-Repair&Maint-Reimbursed Parts 1,000,000 Rationale: Increased costs of gasoline in 2022-budgeted at roughly$2.50 per gallon in 2022;actual was over$4 per gallon for much of the year.High costs of reimbursed parts in 2022 is driven by enormous inflation among vehicle parts and increased repair cost across the City.Delays in the delivery of new vehicles mean that the City has been forced to continue using older vehicles,which require more maintenance and upkeep.Additionally,the City has increased stocking of certain parts due to delays in delivery of those parts in an effort to keep more vehicles in service, 226-04-405-411-434000-- Liability Insurance Administration&Finance Liability Insurance Services&Charges-Insurance-Liability Insurance 294,000 Rationale: Increased cost of property insurance in 2022:Increase of over 20%over 2021.Since 2018,the City's premiums for property insurance have nearly tripled. 266-06-602-503-423002— MVH Restricted Public Works Streets&Sewers Supplies-Repair&Maint-Street Material 226,000 Rationale: Allow for the reallocation of internal paving expenses to our restricted MVII Fund from other funds. 610-06-603-512-436003-- Solid Waste Operations Public Works Solid Waste Services&Charges-Repairs&Maint-Auto Equip R&M 875,000 Rationale: Driven by enormous inflation among vehicle parts and increased repair cost across the City.Delays in the delivery of new vehicles mean that the City has been forced to continue using older vehicles, which require more maintenance and upkeep. rfFice City of South Bend,Indiana NOV 1 1 20Z7 i Q4 2022 Budget Adjustments-Additional Appropriations (increase or decrease in total fund expenditures) DAWt' .JONES - - CITY CLERK. SOUTH BEN D,IN Budget Account# Fund Department Division Account Adjustment 620-06-604-608-452000-- Water Works Operations Public Works Water Works Other Uses-Interfund Transfer Out-Transfers Out 210,000 Rationale: To cover minimum cash reserve requirements for Fund 629(Operation &Maintenance Reserve Fund).This fund is required to keep a balance of 16.67%of the operating budget of water works.As the budget increases(due to inflation and increased costs),the minimum balance requirements increase as well. 641-06-602-509-422002-- Sewage Works Operations Public Works Streets&Sewers Supplies-Operating-Diesel/CNG 116,815 641-06-602-511-422002— Sewage Works Operations Public Works Streets&Sewers Supplies-Operating-Diesel/CNG 7,350 Rationale: Increased costs of fuel in 2022. 641-06-605-515-439001— Sewage Works Operations Public Works Wastewater Services&Charges-Other-Other Contractual Services 100,000 Rationale: To cover increased trucking cost for removing Biosolids at Organic Resources 670-11-230-296-413900-- Century Center Operations Venues Parks&Arts Century Center Personnel-Other Personnel-SMG Wages 450,000 670-11-230-296-431900-- Century Center Operations Venues Parks&Arts Century Center Services&Charges-Professional-SMG Contracted Svcs 100,000 Rationale: Increased wages and services charges stemming from busier-than-expected event schedule.This busy schedule comes with higher-than-expected revenue as well,and the Century Center is back to or above pre-pandemic levels. Grand Total 6,647,387