HomeMy WebLinkAboutDocumentation_Regular_Tab 28_8/13/2020Agenda Item #28.
Regular Council
STAFF MEMO �
Meeting: Regular Council -Aug 13 2020
Staff Contact: Hugh Dunkley, Finance Director Department: Finance
RESOLUTION 21-20, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AUTHORIZING ESTABLISHMENT OF A BUILDING FUND; AUTHORIZING
A BUDGET AMENDMENT TO TRANSFER CERTAIN MONIES INTO THE NEWLY CREATED
BUILDING FUND; AMENDING AND DECREASING THE FISCAL YEAR 2019/2020 GENERAL
FUND #001 BUDGET AS SPECIFIED IN THE ATTACHED "EXHIBIT A;" PROVIDING AN
EFFECTIVE DATE; AND FOR OTHER PURPOSES.
The Building Department's revenues and expenditures are currently accounted for within the Village's General Fund,
along with other activities, i.e., Fire, Police, Public Works, etc. Although this is permissible, it is not the most effective
way of accounting for the restricted Building Department operations. The State has passed recent legislation (via Sec.
553.80, Florida Statutes) requiring annual reporting of the revenues and expenditures of all building departments. This
reporting must also reflect the annual balance of all carryforward reserves (excess of revenues over expenditures) of the
Building Department. For this reason, staff recommends that a separate Building Fund Special Revenue Fund) be
established to account for all of the Building Department's activities.
Staff recommends the following:
■ Establishment of a Special Revenue Building Fund retroactive to October 1, 2019
■ Amendment of the FY20 General Fund budget to exclude the Building Department
■ Establishment of FY20 Building Fund budget
■ Authorization to transfer Building Department beginning balances at October 1, 2019 from the General Fund to
the Building Fund
■ Authorization to transfer funds in the amount of $195,378 from the newly -established Building Fund to the
General Fund for reimbursement of overhead (indirect) costs
BUDGET AMENDMENT RESOLUTION BLDG FUND (NEW) ADA
Budget Amendment Exhibit A Bldg Fund New ADA
Memorandum Template bldq fund ADA
Page 438 of 451
Agenda Item #28.
RESOLUTION 21-20
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AUTHORIZING ESTABLISHMENT OF A
BUILDING FUND; AUTHORIZING A BUDGET AMENDMENT TO
TRANSFER CERTAIN MONIES INTO THE NEWLY CREATED
BUILDING FUND; AMENDING AND DECREASING THE FISCAL YEAR
2019/2020 GENERAL FUND #001 BUDGET AS SPECIFIED IN THE
ATTACHED "EXHIBIT A;" PROVIDING AN EFFECTIVE DATE; AND
FOR OTHER PURPOSES.
WHEREAS, the Village maintains within its General Fund separate revenue and
expenditure line items representing the operations of its Building Department; and
WHEREAS, the Governmental Accounting Standards Board (GASB) allows the
use of special revenue funds to account for specific revenue sources that are restricted
or committed to expenditures for specified purposes other than debt service or capital
projects; and
WHEREAS, the revenues generated by the Building Department are restricted
as to use pursuant to Section 553.80, Florida Statutes, and therefore meet the above
established criteria and may be accounted for in a special revenue fund; and
WHEREAS, the Fiscal Year 2019/2020 General Fund Budget currently includes
restricted Building Department revenues and associated expenditures; and
WHEREAS, staff is requesting the establishment of a special revenue Building
Fund, retroactive to October 1, 2019, so that beginning balances at October 1, 2019 can
be transferred from the General Fund to the newly created Building Fund; and all
revenues and expenditures for Fiscal Year 2019/20 can be accounted for in the new
fund; and
WHEREAS, the Village Council finds that accounting for the operations of the
Building Department within a separate special revenue fund will provide greater
financial transparency to its residents and to the users of the Village's financial
statements.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1: The appropriate officers of the Village are hereby authorized and
directed to take all necessary and appropriate steps to establish a Special Revenue
Fund entitled "Building Fund" to account for the fees, fines, investment earnings and
related expenditures of the Building Department;
Section 2: Resolution 21-20, amending the Fiscal Year 2019/2020 General
Fund and Building Fund budgets are hereby adopted in accordance with the attached
"Exhibit A";
Page 439 of 451
Agenda Item #28.
Section 3: This Resolution shall become effective immediately upon passage.
Page 440 of 451
Agenda Item #28.
EXHIBIT A - FY2019/2020 BUDGET - PAGE 1
FUND 001- REVENUES
-------------------------------------------
ORIGINAL BUDGET
----------------------
AMENDED BUDGETI (DECREASE)
-------------------------------------------
REVISED BUDGET EXPLANATION OF CHANGE
---------------------- ----------------------------------------------
General Property Taxes
7,482,400
7,482,400 -
7,482,400
Sales & Use Taxes
11454,900
1,454,900 -
1,454,900
93,000
Local Business Taxes
93,000
93,000 ----------------------------------------------
Franchise fees - gross receipt
4601000
4601000
7371100
-
(737,100)
4601000
- Reduce Building Department revenue
Building Permits
7371100
888,300
-
Intergovernmental Revenue
888,300
888,300
172,000
-
Chgs for Sery - Gen Gov
172,000
172,000
725,450 -
725,450
Intragovernmental Revenue
725,450
Chgs for Sery - Public Safety
11162,900
11162,900 -
11162,900
Charges for Services - Recr.
76,050
76,050 -
76,050
Fines & Forfeitures
16,000
16,000 -
16,000
Unrestricted Investment Earnings
115,000
115,000 -
115,000
Rents & Royalties
221,600
221,600 -
221,600
1,000
-
Impact Fees
1,000
15,000
1,000
Other Financing Sources
177,930
(20,000)
157,930
Reduce appropriation of fund balance
Operating Transfers
-
----------------------
49,750
- 195,378 195,378 Reimbursement for indirect costs
------------------------------------------- ----------------------------------------------
49,750 - 49,750
5,000 - 5,000
-----------------------
$ 13,838,380 W $ (561,722) $ 13,276.658
Miscellaneous Revenues
Contributions & Donations
5,000
$ 13,675,450
TOTAL REVENUES
I
INCREASE
I
FUND 001- EXPENDITURES
------------------------------------------------------------------
ORIGINAL BUDGET
AMENDED BUDGET
------------------------------------------
(DECREASE)
REVISED BUDGET EXPLANATION OF CHANGE
-----------------------------------------------------------------------
100
- Council
68,050
68,050
-
68,050
110
- Manager
286,100
286,100
-
286,100
111-
Human Resources
386,750
386,750
-
386,750
120
- Village Clerk
370,150
370,150
-
370,150
130
- Finance
425,400
425,400
-
425,400
140
- Lega 1
180,000
180,000
-
180,000
150
- Comprehensive Planning
163,800
163,800
-
163,800
160
- General Government
299,200
306,000
-
306,000
219,400
161- IT
219,400
219,400
-
175
- Police Department
3,394,230
3,473,424
-
3,473,424
180
- Building & Zoning
680,750
716,791
(716,791)
-
93,750
4,293,886
Reduce Bldg Dept expenses
181- Code Compliance
93,750
4,263,150
93,750 -
192 - Fire Control
4,293,886 -
210
- Public Works
1,408,500
1,405,400
-
1,405,400
231-
Leisure Services
690,650
686,950
-
686,950
700
- Debt Service
456,120
475,029
-
4751029
900
- Interfund Transfers
127,100
127,100
-
127,100
950
- Other Nonoperating
162,350
160,400
155,069
315,469 Adjust allocation to fund balance
TOTAL EXPENDITURES
$ 13,675,450
$
13,838,380 $
(561,722)
$ 13,276,658
Page 441 of 451
Agenda Item #28.
EXHIBIT A - FY2019/2020 BUDGET - PAGE 2
FUND 101- REVENUES
ORIGINAL BUDGET
AMENDED BUDGET
(DECREASE) REVISED BUDGET EXPLANATION OF CHANGE
Building Permits
-
-
-
-
-
-
508,000 508,000 Estimated Building Dept Revenues
- -
- -
Other Financing Sources
Miscellaneous Revenues
-
$ -
Other Reserves/Contingency
-
----- ------------------------------------------------
$ -
4041169 4041169 Usage of fund balance reserves
--------------------------------------
$ 912,169 $ 912,169
TOTAL REVENUES
INCREASE
FUND 101- EXPENDITURES
ORIGINAL BUDGET
AMENDED BUDGET
(DECREASE) REVISED BUDGET ..EXPLANATION -OF -CHANGE
180 - Building & Zoning
-
0
716,791 716,791 Transfer department FY20 budget
900 - Interfund Transfers
950 - Other Nonoperating
-
-
0
-
195,378 195,378 Reimburse indirect costs to Gen. Fund
- -
TOTAL EXPENDITURES
$ -
$
$ 912,169 $ 912,169 =
Page 442 of 451
Agenda Item #28.
Memorandum
TO: Jeremy Allen, Village Manager
FROM: Hugh B. Dunkley, Finance Director
DATE: July 23, 2020
SUBJECT: Accounting for Building Fund Activities
The Building Department's revenues and expenditures are currently accounted for within the Village's
General Fund, along with other activities, i.e., Fire, Police, Public Works, etc. Although this is permissible,
it is not the most effective way of accounting for the restricted Building Department operations. The State
has passed recent legislation (via Sec. 553.801 Florida Statutes) requiring annual reporting of the revenues
and expenditures of all building departments. This reporting must also reflect the annual balance of all
carryforward reserves (excess of revenues over expenditures) of the Building Department. For this
reason, staff recommends that a separate Building Fund Special Revenue Fund be established to account
for all of the Building Department's activities. The Governmental Accounting Standards Board ("GASB")
allows the usage of a special revenue fund to account for the proceeds of specific revenue sources that
are restricted or committed to expenditures for specified purposes. It is our belief that, since the building
permit fees and related fines and investment earnings would be considered restricted, insofar as these
funds can only be used to enforce the Florida Building Code, it would be best to account for these
transactions in a special revenue fund that is separate and distinct from the Village's General Fund.
Staff is therefore requesting the following:
■ Establishment of a Special Revenue Building Fund retroactive to October 1, 2019
■ Amendment of the FY20 General Fund budget to exclude the Building Department
■ Establishment of FY20 Building Fund budget
■ Authorization to transfer Building Department beginning balances at October 1, 2019 from the
General Fund to the Building Fund
■ Authorization to transfer funds in the amount of $195,378 from the newly -established Building
Fund to the General Fund for reimbursement of overhead (indirect) costs*
*In 2019, the Village Council adopted Resolution 35-19 which established an administrative fee for the Building
Department. The purpose of this fee was to recognize the indirect costs that were incurred by the Building
Department but were not previously charged to that department. Only indirect costs for FY19 was recognized.
Staff recommends that the reserves transferred from the General Fund to the newly established Building Fund
take into account prior indirect costs that should have been allocated to the Building Fund (FY16 — FY18).
cc: Jose Rodriguez, Building Official
Page 443 of 451