This is a request for City Council to approve a budget transfer to supplement assorted department budgets for operations related overages, efficiency measures and other mandatory changes that have occurred in the current fiscal year, of which a significant portion will be offset by revenue.

In several divisions, operating expenses are trending to exceed the base budget allocation. The factors that contribute to these overages, as well as specifics, are outlined below:

I.       Proposition 206 Minimum Wage Increases (both related to part-time non-benefitted staff and contractual impacts)

(a)        Right-of-Way Contract increases: $31,000

(b)        Part-time Non-Benefitted Staff increases: $26,344

II.     Safety related items

(a)        Lighting changes at the Community Center: $8,000

(b)        Super chlorination due to the Crypto outbreak: $15,000

(c)      OSHA requirements for repairs (ladder replacements, railing around surge tanks, gutter grate replacements, etc.): $15,000

(d)        and Maricopa County repair requirements at the pools (fencing and emergency gate repair): $10,000

III.    Aging facilities and equipment (beyond normal operating budget capacity)

(a)        Fire panel replacement at the Sports Complex: $6,000

(b)        Various repair and maintenance items at the Sports Complex (Maintenance Building A/C unit failure, public restroom water heater failure, etc.): $20,000

IV.   Utility rate increases and increased usage impacts

(a)         Water, Refuse Collection and Electricity usage at the Sports Complex: $105,000

(b)         Janitorial Services at the Sports Complex: $15,000

(c)         Water usage in the Right-of-Way areas: $60,000

V.     Upgrades to security requirements by Major League Baseball

(a)          Metal Detector rental for Spring Training: $11,000

(b)         Expanded security services (bag checks, monitoring of metal detectors, etc.) at Spring Training: $40,000

Also anticipated are cost shares and potential increased revenues.  The IGA with the Peoria Unified School District calls for a 50% contribution for maintenance related costs at swimming pools. In addition, increases in participation projections from recreation programs will offset the General Fund impact of the costs of these unplanned initiatives and issues.

For the issues directly related to the Sports Complex Fund, the fund balance, along with expense reimbursement by the Major League Baseball teams for appropriate items, will contribute to eliminate the impact on the Sports Complex Fund. Additionally, increased revenue expectations from new offerings and increased numbers during Spring Training will contribute to the Sports Complex Fund balance and offset the overall impact of these operating expenses.

In addition to the items mentioned above, the department would like to request the expenditure authority to use $100,000 in salary savings from two vacant Irrigation Technician positions to complete a contracted irrigation study. This study will analyze the older neighborhood parks and outline a plan to efficiently renovate those facilities, subsequently reducing water usage and enhancing aged irrigation systems.

There has been no previous Council action on these items.

The following options are possible for the City Council to recommend:

A.     Approve the budget transfer and cover unplanned operational and maintenance costs for various division in the Community Services Department, as well as the irrigation study for neighborhood parks, as outlined above.

B.     Direct staff to continue operating within current divisional budgets without the infusion of funds needed to make these divisions able to continue to do business for this fiscal year. And decline the use of salary savings for the irrigation study of older neighborhood parks.

C.     Approve the use of salary savings for the irrigation study on older neighborhood parks but decline the budget transfer for operational and maintenance overages. 

Request the use of General Fund Reserves and a budget adjustment in the amount of $362,344 from the General Fund Contingency account to the following General Fund and Sports Complex Fund accounts. Associated revenue or other reimbursements are included for reference.

In addition, request a transfer from (Parks North Salaries and Wages Regular) and (Parks South Salaries and Wages Regular) in the amount of $50,000 each, to (Parks North Other Professional Services Account) and (Parks South Other Professional Services Account) in order to approve expenditure authority for the irrigation system survey of various neighborhood parks.