Title
Ordinance No. 15-41 amending Ordinance No. 14-101 (2015 Appropriation Ordinance) for a supplemental appropriation to the General Fund in the amount of $558,447 for repairs due to hail damage that was incurred on May 21, 2014, an increase in insurance premiums, and an increase in court-appointed attorney costs; and to the Parking System Fund in the amount of $31,937, and the Patty Jewett Golf Fund in the amount of $10,138 for repairs due to hail damage that was incurred on May 21, 2014
Body
From:
Kara Skinner, Chief Financial Officer
Summary:
The attached ordinance is a supplemental appropriation for General Fund in the amount of $558,447 for repairs due to hail damage that was incurred on May 21, 2014, an increase in insurance premiums, and an increase in court-appointed attorney costs; and to the Parking System Fund in the amount of $31,937, and the Patty Jewett Golf Fund in the amount of $10,138 for repairs due to hail damage that was incurred on May 21, 2014.
Previous Council Action:
On December 9, 2014, City Council approved the original 2015 Budget per Ordinance No. 14-101, which included the appropriation of funds for the General Fund, Parking System Fund, and Patty Jewett Golf Fund.
Background:
This supplemental appropriation is for the following purposes:
• Hail Damage: Several City facilities incurred hail damage on May 21, 2014. The total cost of repairs is estimated to be $226,018. The City filed a claim with its insurance company for the damages and has received $115,050. The deductible is $50,000. The City expects to receive an additional $60,968 from the insurance company once the repairs have been made. The General Fund’s share of the deductible in the amount of $40,692 is not included in the supplemental request; therefore, the amount of the supplemental appropriation request to the General Fund and Enterprise Funds for hail damage is $185,326. See attached Exhibit A for a breakdown of the repair costs and deductibles for each fund.
• Insurance Premium Increase: The 2015 budget included $370,345 for the premium on its property and vehicle policy, which was based on the 2014 premium. The 2015 premium is $615,541, which is an increase of $245,196 that is largely due to the vehicle portion of the policy.
• Court-Appointed Attorney Costs: Colorado State law changed in 2013 to provide court-appointed attorneys to indigent defendants who are facing a potential jail sentence. The 2015 budget included $170,000 for these mandated costs; however, based on activity through April, these costs are projected to be $340,000 for 2015, which is an increase of $170,000 over the 2015 budget.
Financial Implications:
Impacts of the supplemental appropriation are as follows:
• General Fund: The supplemental appropriation increases the 2015 General Fund expenditure budget by $558,447. The sources of these funds are the General Fund’s share of the insurance claim proceeds in the amount $143,251 for the hail damage incurred on May 21, 2014, and the General Fund available fund balance in the amount of $415,196.
• Enterprise Funds: The supplemental appropriation increases the 2015 Parking System Fund expense budget by $31,937. The source of funds for the Parking System Fund are the insurance claim proceeds in the amount of $24,872 for the hail damage incurred on May 21, 2014, and $7,065 from the Parking System Fund available fund balance. The supplemental appropriation also increases the 2015 Patty Jewett Golf Fund expense budget by $10,138. The source of funds for the Patty Jewett Golf Fund are the insurance claim proceeds in the amount of $7,895 for the hail damage incurred on May 21, 2014, and $2,243 from the Patty Jewett Golf Fund available fund balance.
Board/Commission Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move approval of the attached ordinance approving a supplemental appropriation to the General Fund in the amount of $558,447 for repairs due to hail damage that was incurred on May 21, 2014, an increase in insurance premiums, and an increase in court-appointed attorney costs; and to the Parking System Fund in the amount of $31,937, and the Patty Jewett Golf Fund in the amount of $10,138 for repairs due to hail damage that was incurred on May 21, 2014
Ordinance Language
An ordinance amending Ordinance No. 14-101 (2015 Appropriation Ordinance) for a supplemental appropriation to the General Fund in the amount of $558,447 for repairs due to hail damage that was incurred on May 21, 2014, an increase in insurance premiums, and an increase in court-appointed attorney costs; and to the Parking System Fund in the amount of $31,937, and the Patty Jewett Golf Fund in the amount of $10,138 for repairs due to hail damage that was incurred on May 21, 2014