TO: Honorable Mayor & Members of the North Port Commission
FROM: Jason Yarborough, ICMA-CM, Interim City Manager
TITLE: Ordinance No. 2021-10 Amending the Non-District Budget for Fiscal Year 2020-21 by Transferring $473,500 from the General Fund Balance for Operation of Parks, Recruitment of City Manager, and Maintenance Van and by Increasing the Revenues in the Self Insurance Medical Fund by $38, 170.
Recommended Action
Approve Ordinance No. 2021-10 and move to second reading on January 26, 2021.
Recommended Action for Second Reading
Approve and adopt Ordinance No. 2021-10
Background Information
The Interlocal Agreement with Sarasota County is ending in June 2021. The City will then assume full responsibility for operations and maintenance of ten multipurpose fields, five baseball fields, five softball fields, two volleyball courts, one water access/boat ramp park and a 125 acre environmental park currently maintained by Sarasota County. This amendment includes adding a net 11.5 full time employees for positions that were previously discussed during the budget workshops. They include one Staff Assistant I, one Staff Assistant II, one Athletic Field Supervisor, four Athletic Field Specialist IIs, four Athletic Field Specialist IIIs, and increasing a current part time Rec Attendant position to a full time position.
During the Budget Workshop on August 17, 2020, the Commission discussed funding for park maintenance staff, operations and equipment that would be needed to maintain and operate fields and parks following the expiration of the 2006 Interlocal Agreement with Sarasota County. The conversation included an overview of previous direction for staff to hold conversations with Sarasota County and schedule a joint meeting in an effort to negotiate options to reduce the financial impact of the expiration on the City, and confirmation from then Acting City Manager, Jason Yarborough that staff level discussions were underway. The Commission discussed removal of the funding while negotiations were ongoing, however noted the importance to keep the funding at the top of the priority list to ensure the ability to assume operations as needed. Additionally, the Commission outlined a plan to use the stability fund for a budget amendment once revised information is brought back to the Commission. The Commission reached a consensus “to defund the salary and expenses related to the parks transition in the General Fund” which resulted in the removal of $464,670 within Budget Proposal 1721.
Interim City Manager Yarborough has continued conversations with Sarasota County regarding the potential transfer of Myakkahatchee Creek Environmental Park, however an agreement has not been finalized. In order to ensure funding is in place to prepare for the expiration of the agreement, an amendment has been developed for Commission consideration. After additional review and evaluation, the attached budget amendment reflects revised staffing start dates, reevaluation of utility costs and deferred maintenance projects, resulting in a net decrease of $52,180 from originally anticipated expenses of $464,670 to $412,490.
Funds for the executive firm to conduct the City Manager search in the amount of $45,000 is also being requested from General Fund reserves.
Funds for the replacement of CID 73185 a totaled Facilities Maintenance Van is included in the amount of $16,010. This is the amount necessary for replacement after insurance proceeds are deducted.
These three items would be funded by $473,500 in fund balance.
The addition of the 11.5 positions in the Recreation and Parks Maintenance divisions would increase the revenues and expenses anticipated in the Self Insurance Medical Fund. The $38,170 being budgeted as part of the $412,490 Parks request in the General Fund for health insurance would be included as additional revenue to the Self Insurance Medical fund and added to the Medical Claims line item as an expense.
Recommended Changes for Second Reading
There are no recommended changes from First Reading.
Strategic Plan
Efficient and Effective Government
Financial Impact
$473,500 in expenses would be added to the General Fund as outlined above and funded through fund balance.
The Self Insurance Medical Fund would increase by $38,170 with revenues coming from the increase to Health Insurance costs in the Parks and Recreation divisions.
Procurement
N/A
Attachments:
1. Ordinance No. 2021-10 First Reading
2. General Fund fund balance report
3. Parks and Recreation breakdown of additional costs
4. Ordinance No. 2021-10 Second Reading
Prepared by: Lisa Herrmann, Budget Administrator
Department Director: Kimberly Ferrell, Finance Director