By Clint Brown The Chronicle
The Pella Chronicle
---- — The Pella City Council approved Budget Amendment #1 for the FY 13-14 Budget, following a public hearing on the matter.
No increases in taxes or rates will ensue as a result of this amendment, as all items will either be covered by offsetting expenditure savings or reserves.
This amendment contains a net increase in fund balance of $1,810,191.
This includes timing differences for a total $1,221,844 and represents funds budgeted in FY 12-13 that will be expended in FY 13-14. The amendment also represents timing differences total $4,865,740 and represent funds budgeted in FY 13-14 that will be expended in FY 14-15.
Other expenditure increases totaling $1,833,191 and are highlighted below:
-Expenditure increase of $1,025,000 for the Power Plant Decommissioning. This amendment adjusts the budget to align with the timing of the project’s expenditures.
-Expenditure increase of $1,047,294 for the Construction of the Sports Park. Construction of the Sports Park is currently ahead of schedule and expected to make significant progress in the coming months. The total City contribution continues to remain within the budgeted amount, with Fields of Our Future reimbursing 100% of any additional or unanticipated costs.
-Revenue decrease of $725,122 to reflect the 2014 LOSST Bond Proceeds. Bonds were issued in the amount of approximately $3.27 million to fund improvements to the indoor pool. The bond issuance was originally budgeted at $4.0 million.
-Expenditure increase of $630,100 for Repair of Hazel Street. Reconstruction of Hazel Street including water, sanitary sewer and storm sewer.
-Expenditure increase of $502,710 for the Sub D Area Conversation and Extension project. The conversion of existing 4.16 kV overhead circuits to 12.5 kV circuits installed underground is currently ahead of schedule. Project expenses for FY 14 are expected to amount to roughly $929,000. While the overall project budget continues to remain roughly $1.5 million dollars, significantly more progress was made in FY 14 than originally anticipated, thus lowering future FY 14-15 expenditures.
-Expenditure increase of $145,684 for the Replacement of the Diesel Plant Controls. The operational needs for the Diesel Plant have changed from its inception. As a result, changes in the black start functionality, isolated operational capacities, voltage and VAR control, and remote operation have resulted in demands for diesel plant control upgrades. Project bids exceeded engineer’s estimates for FY 14-15.
-Expenditure increase of $117, 600 for the purchase of new playground equipment for Fountain Hills Park. Pursuant to the development agreement approved by Council on November 4, 2013, park equipment and a shelter house are currently under construction for Fountain Hills Park. This project was not included in the original FY 14 Budget.
-Expenditure increase of $117,184 for the construction of the sanitary sewer force main for Lift Station #2. As part of the DNR mandated projects, the City was required to construct a 16” force main to carry discharge from Lift Station #2 to the Southeast truck sewer. Bids for this project exceeded engineer’s estimates, and rebidding the project would likely not have resulted in any savings.
-Expenditure increase of $30,927 for residential/local street improvements. Bids for this project exceeded engineer’s estimates, and rebidding the project would likely not have resulted in any savings.
-Expenditure increase of $25,500 for new meter reading equipment. Support and service for the previous meter reading equipment had become a burdensome project since 2011. The extended service agreement that had been place since that time no was no longer an option, necessitating the purchase of new handheld devices and remote reading devices.
-Expenditure increase of $23,600 for hot water supply returns for the Wastewater System. Replacement of the hot water heating systems supply lines for the grit building and plant pump house at the wastewater treatment plant exceed original estimated costs. It appeared unlikely that rebidding the project would result in lower project costs.
-Expenditure increase of $22,489 for repair of the City Hall elevator. The elevator located at City Hall required extensive repair to continue to provide ADA access for employees, customers and visitors. The primary cause of the necessary repairs was oil leakage from the underground cylinder.
-Expenditure increase of $20, 785 for Community Center asbestos survey and removal. A Community Services Building Assessment was completed in early 2014 which indicated the existence of damaged asbestos around the water tank and piping. Due to the health concerns associated with this hazardous material, the engineer recommended the material be mitigated as soon as possible.
-Expenditure increase of $17,080 for Aquatic Center slides and equipment. Routine maintenance is necessary to extend the life of this feature and also to keep the facility safe for Aquatic Center patrons. Estimated costs for this project came in over the anticipated budget, but are required to continue to maintain a safe and proper working order of the facility.
-Expenditure increase of $10,000 for repairs to the Pella Public Library. Settling of the floor in three areas of the library caused concern for the safety of employees and patrons. As a result, library staff sought engineer’s opinions and recommendations for repair. Shive-Hattery, with whom the City has a long history, recommended “mudjacking” of the areas to alleviate the settlement concerns.
-Expense decrease of $15,000 for the Huber Street storm sewer replacement.The Public Works Department, in an effort to alleviate unnecessary costs and utilize staff expertise, undertook the project in house which resulted in additional project related savings.
-Expenditure decrease of $33,870 for the Parks Department Mower Replacement. Due to the unanticipated failure of a Parks Department mower which was budgeted for FY 13-14, the mower purchase occurred in the FY 12-13 budget year. The timing of the purchase lowered the remaining expense for the FY 13-14 Parks Department equipment.
-Expenditure decrease of $35,000 for the Morningside/Union Outfall. The Morningside/Union storm sewer outfall was completed with direct labor and clean broken concrete. Additional costs associated with assistance by a private excavating company were paid for utilizing standard operating funds, although associated expenses were minimal.
-Expenditure decrease of $60,000 for wayfinding signage. During the FY 14-15 budget discussion, staff proposed to solicit donations for community entrance signage. In the event that solicitation does not result in donations sufficient to purchase the signage, additional funds may be requested in future years.
-Revenue increase of $2,500,000 for the 2014 Electric Revenue Bonds. Revenue bonds were issued in the amount of $3,500,000 to cover the cost associated with the power plant decommissioning.