TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 19, 2019
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to Amend the Adopted 2020 Budget
Body
Dear Sir:
The attached changes to the Adopted 2020 Budget (BF-21 budget forms) are submitted for your consideration as amendments to the 2020 Adopted Budget at the Board Meeting of December 19, 2019. There are no net changes to the requested appropriations. Changes to the Corporate Fund and the Construction Fund are summarized below:
FUND DEPARTMENT NET CHANGE
CORPORATE General Administration $0
Monitoring & Research $0
Human Resources $0
TOTAL CORPORATE FUND $0
CONSTRUCTION $0
The 2020 total appropriation request is $1,152,633,167, unchanged from the Adopted Budget. Compared to the 2019 total adjusted appropriation of $1,222,943,041, this is a decrease of $70,309,874, or 5.7 percent.
The 2020 total tax levy is $652,646,487, unchanged from the Adopted Budget. Compared to the 2019 total adjusted levy of $643,374,010, this is an increase of $9,272,477, or 1.4 percent.
The Corporate Fund total appropriation request is $399,047,500, unchanged from the Adopted Budget. Compared to the 2019 Corporate Fund total adjusted appropriation of $377,612,500, this represents an increase of $21,435,000, or 5.7 percent. The proposed BF-21 changes for the Corporate Fund include changes within the General Administration budget to accommodate a carryforward of the current elevator maintenance purchase order until a new contract is awarded; a reallocation of funding in the Monitoring & Research Department to allow for the replacement of sink fixtures in the analytical laboratories; and the implementation of a crosshatch #2 on a position in the Human Resources Department.
The Construction Fund total appropriation request is $18,044,400, unchanged from the Adopted Budget. Compared to the 2019 Construction Fund total adjusted appropriation of $18,340,300, this represents a decrease of $295,900, or 1.6 percent. The proposed changes within the Construction Fund are required due to the timing of project completion. The projects include the rehabilitation of pumps at the Kirie WRP and the replacement of deep anode ground beds for the cathodic protection system for TARP.
The Capital Improvements Bond Fund total appropriation request is $244,547,400, unchanged from the Adopted Budget. Compared to the 2019 Capital Improvements Bond Fund total appropriation of $378,173,800, this represents a decrease of $133,626,400, or 35.3 percent. The reduction in appropriation is due to the timing of the planned construction project awards. The Capital Improvements Bond Fund is budgeted using the obligation basis of budgeting, encumbering the entire construction cost of the project at the time of construction award.
The Stormwater Management Fund total appropriation request is $116,258,000, unchanged from the Adopted Budget. Compared to the 2019 Stormwater Management Fund total adjusted appropriation of $91,410,100, this represents an increase of $24,847,900, or 27.2 percent.
The Bond Redemption & Interest Fund total appropriation request is $233,021,867, unchanged from the Adopted Budget. Compared to the 2019 Bond Redemption & Interest Fund total adjusted appropriation of $238,357,541, this represents a decrease of $5,335,674, or 2.2 percent.
The Retirement Fund total appropriation request is $107,319,000, unchanged from the Adopted Budget, and includes a $20 million transfer of accumulated investment income to the Retirement Fund. Compared to the 2019 Retirement Fund total adjusted appropriation of $87,281,000, this represents an increase of $20,038,000, or 23.0 percent.
The Reserve Claim Fund total appropriation is $34,395,000, unchanged from the Adopted Budget. Compared to the 2019 Reserve Claim Fund total adjusted appropriation of $31,767,800, this represents an increase of $2,627,200, or 8.3 percent.
The total number of positions requested for 2020 is 1,953, a decrease of 14 positions from 2019. This number is unchanged from the Adopted Budget. From the 2019 budgeted Full Time Equivalents (FTEs), the Corporate Fund is decreasing by 20 FTEs, while the Stormwater Management Fund is increasing by 6 FTEs. The proposed position change included in the BF-21 amendment reflects the implementation of a crosshatch #2 on a Human Resources Analyst position due to an unanticipated retirement effective November 30, 2019.
The project list for the Construction Fund, Tentative Budget pages 75-76, has been revised to reflect project changes.
The attached BF-21 budget forms (pages 1-4) detail all requested changes in appropriation.
The financial schedules for the Final Adopted and Amended Budget will be revised to adjust the departmental appropriations to include allocation of the general salary adjustment for non-represented employees as determined at the budget adoption on December 12, 2019.
The Executive Director’s Recommendations and the Tentative Budget, which include all the budget-related Ordinances in their entirety, and the Report of the Committee on Budget and Employment are available for review on the District’s website, www.mwrd.org .
Requested, Eileen M. McElligott, Administrative Services Officer, SAR
Respectfully Submitted, Frank Avila, Chairman, Committee on Budget and Employment
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 19, 2019
Attachments
Revised Tentative Budget pages 75-76 dated December 11, 2019
BF-21 pages 1-4, dated December 11, 2019