HomeMy WebLinkAbout2016-3808 - Ordinance - 09/22/2016 ORDINANCE NO.2016-3808
AN ORDINANCE(BUDGET AMENDMENT#3)AMENDING ORDINANCE NO.2015-3705 WHICH
WILL AMEND THE BUDGET FOR THE 2015-2016 FISCAL YEAR AND AUTHORIZING
AMENDED EXPENDITURES AS THEREIN PROVIDED.
WHEREAS, on September 21, 2015, the City Council of the City of College Station, Texas, adopted
Ordinance No. 2015-3705 approving its Budget for the 2015-2016 Fiscal Year; and
WHEREAS, on February 11, 2016, the City Council of the City of College Station, Texas, adopted Budget
Amendment#1 approving its Budget for the 2015-2016 Fiscal Year; and
WHEREAS, on July 28, 2016, the City Council of the City of College Station, Texas, adopted Budget
Amendment#2 approving its Budget for the 2015-2016 Fiscal Year; and
WHEREAS,this amendment was prepared and presented to the City Council and a public hearing held thereon
as prescribed by law and the College Station City Charter, after notice of said hearing having been first duly
given;now,therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,TEXAS:
PART 1: That Ordinance No. 2015-3705 is hereby amended by amending the 2015-2016 Budget adopted
thereto by a net amount of $2,390,944 as further detailed in Exhibit A attached hereto and
incorporated herein for all purposes.
PART 2: That this Budget Amendment#3 shall be attached to and made a part of the 2015-2016 Budget.
PART 3: That except as amended hereby, Ordinance No, 2015-3705 shall remain in effect in accordance
with its terms.
PART 4: That this ordinance shall become effective immediately after passage and approval.
PASSED and APPROVED this 22nd day of September 2016,
ATTEST: APPROVED:
Ls. !
City Secretary Mayor
APPROVED:
1. . 1 ,r ' JAW'i11
City Attorney
Ordinance No. 2016-3808 Page 2 of 2
Exhibit A- FY16 Budget Amendment#3 Detail Listing
The proposed budget amendment is to increase the FY16 budget for the item listed below by$2,390,944,
which includes one interfund transfer and two interfund loans. Interfund transfers require Council
approval and are therefore included as part of this Budget Amendment.
1. HUD Repayment—$2,390,944 Transfer from Community Development Fund to a new Special
Revenue Fund (Budget Amendment, Interfund Transfer,and Interfund Loans)
In October 2009,the City purchased a piece of property on Holleman Drive with CDBG Funds with
the intent to use it for a CDBG eligible development. Over time, City Council direction changed
and a decision was made to sell the property to allow private development of the property to
occur. HUD has informed the City that because an eligible project has not been completed, the
City will be required to repay the funds used to purchase the land. In an e-mail to City staff dated
July 15, 2016, the HUD Director in Houston directed that the CDBG funds should not be returned
to Treasury, but that the City should set up a CDBG Local Account Fund which these funds will be
deposited so that the HUD requirements are satisfied. City staff has established a separate bank
account and a new special revenue fund entitled CDBG Local Account Fund to meet these
requirements.
The HUD funds related to the Holleman property were originally received into the Community
Development Fund. Therefore, the repayment of the funds will need to originate from the
Community Development Fund as a transfer to the new CDBG Local Account Fund. Currently,the
Community Development Fund lacks the funds to transfer into the newly-created local account.
To meet the HUD requirement, cash will be loaned to the Community Development Fund by the
General Fund ($893,638) and the Wastewater Fund ($1,497,306).
Once the Holleman property sale is closed and the proceeds are made available,the General Fund
and Wastewater Fund loans will be repaid. It is anticipated that the closing on the property will
occur in the latter part of FY17.