LEGISLATION ITEM 9 RESOLUTION NO. R2014-45

A RESOLUTION AUTHORIZING A TRANSFER FROM THE PUBLIC SAFETY LEVYFUND TO THE GENERAL FUND AND DECLARING AN EMERGENCY.

BE IT RESOLVED by the City Council of the City of Middletown, Butler/Warren

Counties, Ohio that:

Section 1

The transfer of funds listed below is hereby authorized by City Council:

$200,000.00 From the Public Safety Levy Fund (Fund #200)

 $200,000.00 to the General Fund (Fund #100)

Section 2

This resolution is declared to be an emergency measure necessary for the immediate

preservation of the public health, safety and general welfare to wit: to assure the proper

allocation of City funds and maintain the proper administration of the finances of the City, and

shall be in full force and effect immediately upon its adoption.

____________________________

Lawrence P. Mulligan, Jr., Mayor

Adopted: ___________________

Attest: __________________________

Clerk of the City Council

H:\Law\leg\2014 Leg\r Transfer Public Safety Levy Fund.doc
S T A F F R E P O R T

For the Business Meeting of December 2, 2014

DATE: November 13, 2014

TO: Doug Adkins, City Manager

FROM: Michelle Greis, Finance Director

PURPOSE

The purpose of this staff report is to request supplemental appropriations for various

funds for year-end accounting purposes.

BACKGROUND and FINDINGS

City Manager (General Fund #100), Wages (100.111.51110) - $20,000

The current wages and salaries line item has spent 92% of its allocated budget. An

additional $20,000 is requested to reimburse for moving expenses for the City Manager

and to accommodate the change in personnel.

Parks Maintenance (General Fund #100), Overtime Wages (100.142.51120) - $4,250

Overtime estimated for special events and snow removal for the remainder year.

Grounds Maintenance (Auto & Tax Fund #210), Overtime Wages (210.543.51120) -

$1,200. Overtime estimated for the remainder of the year for snow & ice control and special events.

Public Safety Levy Fund (Fund #200), Transfer to General Fund (200.915.58275) -

$200,000

We are anticipating approximately $400,000 in revenue for November and December.

We currently have enough budget authority to transfer $200,000.

Taxation (City Income Tax Fund #230),

Transfers Out (230.915.58110) - $186,000 to General Fund;

Transfers Out (230.915.58250) - $200,000 to Termination Pay Fund;

Transfers Out (230.915.58120) - $180,000 to Auto & Gas Tax Fund; and

Transfers Out (230.915.58273) - $200,000 to Public Safety Levy Fund

We estimate that an additional $800,000 is projected in Income Tax revenue by year

end. This request will allow additional funds to be transferred to the Termination Pay

Fund for retirements anticipated by year end, allow a supplemental for the Taxation

Supplemental Appropriations – Various FundsDivision, give the Auto and Gas Tax Fund for purchase of salt with the remaining to be transferred to the General Fund.

Taxation (City Income Tax Fund #230), Other Professional Services (230.133.52480) -

$26,000, Outside Printing (230.133.52490) - $8,000

Other Professional Services includes payments to a collection agency for delinquent

taxes and fees for a process server. The majority of the process server fee is assessed

back to the taxpayer and paid through their tax account. A total of $21,000 is requested

for the collection agency for a period of two years and $15,000 is requested for the

process server. We are also requesting $8,000 for outside printing costs enabling us to

order tax forms for the new year.

Termination Pay Fund (Fund #246), Termination Pay (246.990.51140) - $200,000

This request will fund anticipated retirement expenses for the remainder of the year.

Renaissance South TIF (Fund 372), Reimbursements (372.990.52441) $63,100

This tax increment fund received unanticipated property tax revenue and a percentage

of this revenue includes the school’s portion of taxes. This appropriation allows us to

reimburse the school for their portion.

Downtown Improvement Fund (Fund #481), Other Professional Services

(481.604.52480) - $10,000

Funds requested for real estate commission fees on the sale of the Manchester Inn.

Storm Water Fund (Fund #515), Overtime Wages (515.461.51120) - $4,000

A supplemental is needed for overtime associated with storm water blockages, high

water complaints, and snow & ice control.

Airport Fund (Fund #525), Transfer to Airport Improvements (525.990.58294) - $85,000

To support the city’s match for capital project grants being received from the FAA and

ODOT.

Police Pension Fund (Fund #725), Transfer to General Fund (725.990.58110) -

$183,809

The last quarter 2013 pension costs were paid in 2014. This supplemental will allow

these funds to be transferred to the General Fund.

Fire Pension Fund (Fund #726), Transfer to General Fund (725.990.58110) - $201,302

The last quarter 2013 pension costs were paid in 2014. This supplemental will allow

these funds to be transferred to the General Fund.

The following are requests to reduce the appropriated budgeted amounts as

follows:

Housing Assistance (Fund #232), Housing Assistance Payments (232.990.52960) -

$2,000,000Request to de-appropriate $2 million because this function with the city has ceased and

transferred to Butler and Warren Counties.

Court IDIAM Fund (Fund 252), Other Professional Services (252.990.52480) - $25,000

Request to de-appropriate $25,000 as this project has been rescheduled for 2015.

HUD Section 108 Fund (Fund #261), HUD 108 Loan Principal (261.980.55802) – $25,000,

HUD 108 Loan Interest (261.980. 55803) - $1,400, and Bank Fees (261.980.55803) -

$1,000

Request to de-appropriate $27,400. HUD disbursed $1 million to the City which was

then loaned to Higher Education Partners in 2013. This loan was paid off by Higher

Education Partners earlier this year and these appropriations are no longer needed.

Sewer Connection Program (Fund #878), Sewer Connections (878.990.54520) -

$600,000

This project is delayed until next year.

2013 Sidewalk, Curb, and Gutter Program (Fund #879), Concrete Improvements

(879.990.54520) - $15,000

No projects completed in 2014 for this project.

Central Ave. Sidewalk, Curb, and Gutter Program (Fund #880), Sidewalk, Curb & Gutter

(880.990.54520) - $500,000

This project will be moved to 2015.

2014 Sidewalk, Curb, and Gutter Program (Fund #881), Sidewalk, Curb & Gutter

(881.990.54520) - $500,000

There was no sidewalk program implemented in 2014.

ALTERNATIVES

This resolution must be approved to maintain the correct financial relationship between City funds.

FINANCIAL IMPACT

These supplemental appropriations will have an effect on their perspective fund

balance; however, all unspent funds will be deposited back into their perspective funds.

EMERGENCY/NON EMERGENCY

Emergency legislation is needed to meet the year-end deadline for compliance with

accounting and auditing requirements.

Posted: 5:35 p.m. Tuesday, Dec. 9, 2014

Middletown prepares to close out its 2014 books

By Ed Richter

Staff Writer

MIDDLETOWN — 

As the city closes out its books for the year, Middletown City Council approved seven resolutions for number of supplemental appropriations and fund transfers. Many of the transfers were required to balance out the city’s books as well as reimbursing the General Fund for earlier transfers to various funds.

Among those items were an additional $20,000 to the City Manager’s Office fund for reimbursement of moving expenses incurred by City Manager Doug Adkins. Council recently amended Adkins’ contract extending the time for him to move into the city. Adkins recently purchased a house in the city and expects to be moved in sometime before Christmas.

Council also approved a transfer of $200,000 from the public safety levy fund to the General Fund. Finance Director Michelle Greis said the transfer was made because the city anticipated an extra income tax revenue increase for 2014. She also said the transfer was needed to repay the General Fund from an earlier transfer. Greis said the 0.25 percent additional income tax is earmarked for public safety expenses and generates about $2.8 million year. The overall public safety budget is about $20 million, she said.

All unspent funds for 2014 will be redeposited into their respective funds for the 2015 fiscal year, she said.

In addition, $200,000 was transferred to the termination pay fund to cover anticipated retirement costs for the rest of 2014.

Council also approved a resolution to advance $922,000 from the General Fund to the city’s capital improvement fund to cover street improvement projects as the state and federal grants require the city to spend the money first and then request reimbursement. The resolution allows work to continue on current projects including Towne Boulevard, Oxford State and Yankee roads, which are funded partially by grants.

City officials said the only revenue for the capital improvement fund is a 1 mill property levy that generates about $630,000 a year. The advance will be repaid during 2015 when reimbursements are made.

Firefighter, inspector recalled

Council approved the recall of Firefighter Christopher Klug who was among the 11 firefighters laid off in August due to budget constraints. He will fill the vacancy created by the retirement of Scott Bruggeman, effective Nov. 22.

He joins fellow firefighter Ryan McClure who was also recalled in late October to fill the vacancy when former chief Steve Botts resigned to take a deputy fire chief’s job in Mason.

In addition, Tom Huitt was recalled to his position as the city’s electrical inspector. According to city officials, the position was eliminated in January 2014 as a budget cut. However, the city was required to do electrical inspections, so Huitt was paid through a temporary service. The savings were very small, and the building inspection department is generating enough revenue to cover the position and has been accounted in the 2015 city budget. Huitt will be returned to his previous position and pay grade.

Transit grants

Resolutions were also approved by council for the city to apply for federal and state transit grants for 2015. Transit services is budgeted at $280,000 from the General Fund as the required city’s portion to buy five new buses.

The federal and state grants cover 60 percent of eligible operating expenses, 80 percent of eligible capital expenses, and 80 percent of eligible planning expenses. The grants also cover elderly and disabled assistance projects. Without these grants, the city would have to use more General Fund revenues to cover these expenses.