CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the Ordinance Approving an Amendment of the City of Naperville Annual Budget for Calendar Year 2018 in the amount of $220,520.
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On November 21, City Council approved an intergovernmental agreement with the City of Aurora for collaboration on grants. The City of Naperville and the City of Aurora Emergency Management Agencies applied for and were awarded a $1.37 million grant from Federal Emergency Management Agency (FEMA) to use for program development, critical infrastructure assessments, development of common operating practices relating to Complex Coordinated Terrorist Attacks, improvements to both cities’ Continuity of Operations Plans, and to pay for overtime and backfill for hours related to training and program development. This agreement will allow the City of Naperville to receive grant funds that will reimburse the City 100% for eligible expenses.
The City of Aurora will receive the funds directly from FEMA, these funds will be utilized equally between the two cities to complete the grant project. However, there will be greater expenditure reimbursement to the City of Aurora as they will have primary oversight for contractor services associated with the grant. The City of Naperville will submit the appropriate documentation to the City of Aurora Finance Department for employees that worked overtime or backfilled duties for grant-related purposes. The Finance Director/City Treasurer of the City of Aurora is specifically directed and authorized to transfer funds or pay invoices attributable to the City of Naperville as required to fulfill the requirements of the grant.
DISCUSSION:
The grant covers three years of funding, from 2017 to 2020. The grant will expire in September 2020 in accordance with the federal government’s fiscal year, which runs from October through September. This budget amendment will cover all of year one grant expenses and three months of year two grant expenses.
The overall grant award is $1.37 million, of that amount, the City of Naperville projects that approximately 40% or $552,355 will be incurred directly by the City and reimbursed through the IGA. The project expenses are separated into the following four major categories:
1. Identifying Gaps - This component of the project will be primarily expended in year one of the grant with a projected cost of $61,594. Aurora will cover consultant expenses and the personnel expenses will be split evenly.
2. Planning - This component of the project will be primarily expended in year one of the grant with a projected cost of $85,171. Aurora will cover consultant expenses and the personnel expenses will be split evenly.
3. Training - This component of the project will be expended across all three years of the grant, with a greater emphasis in year one and two with a projected total cost of $732,687. Personnel expenses will be split evenly and Aurora will be the primary payer for consultants, travel, conferences, and supplies.
4. Exercising - This component of the project will be expended in year three of the grant with a projected cost of $494,359. Personnel expenses will be split evenly and Aurora will be the primary payer for consultants, travel, conferences, and equipment.
|
|
Salary |
Benefits |
Contract Services |
Travel & Conferences |
Equipment & Supplies |
Total |
|
Identifying Gaps |
10,200 |
193 |
51,200 |
- |
- |
61,593 |
|
Planning |
9,000 |
171 |
76,000 |
- |
- |
85,171 |
|
Training |
491,350 |
9,337 |
164,000 |
50,000 |
18,000 |
732,687 |
|
Exercising |
230,450 |
4,379 |
247,000 |
- |
12,530 |
494,359 |
|
TOTALS |
741,000 |
14,080 |
538,200 |
50,000 |
30,530 |
$ 1,373,810 |
Based upon the project plan and expense categories the project total annual costs are as follows:
• Year 1 Total Cost = $550,000 with Naperville’s expenses projected at $220,520
• Year 2 Total Cost = $255,000 with Naperville’s expenses projected at $113,870
• Year 3 Total Cost = $568,810 with Naperville’s expenses projected at $217,965
Staff is requesting a $220,520 budget amendment to the General Fund to be used to cover overtime, backfill, and associated benefits for grant-related purposes. Grant revenues and expenditures will be budgeted appropriately in future City budget requests.
According to state statute, Council must approve an amendment to the 2018 Annual Budget to increase expenditure authority by $220,520 in the General Fund. This will bring the General Fund from $121,059,145 to $121,279,665 in 2018 spending authority. Exhibit A provides a breakdown on the impact of the proposed budget amendment to the City’s overall expenditures and revenue budgets by fund.
FISCAL IMPACT:
This amendment will increase the City’s overall 2018 expenditure budget to $443,864,320 and overall 2018 revenue budget to $452,798,398.