TO: Mayor and Members of City Council
THRU: Telly Whitfield, Ph. D., Assistant City Manager
FROM: Tracey Broyles, Budget and Evaluation Director
DATE: November 26, 2018
RE:
Title
Adoption of Budget Ordinance Amendment 2019-7 to Appropriate Additional Funding for Hurricane Florence Recovery Expenditures
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V: Sustainable Organizational Capacity
- Objective A: To ensure strong financial management with fiduciary accountability
Executive Summary:
Budget Ordinance Amendment (BOA) 2019-7 will appropriate $324,000 in the General Fund and $1,455,000 in the Environmental Services Fund to provide additional funding for Hurricane Florence recovery expenditures. The funding sources for the additional appropriations are expected reimbursements from the Federal Emergency Management Agency (FEMA) and the North Carolina Department of Public Safety (NCDPS).
Background:
Fayetteville experienced the impacts of Hurricane Florence beginning on September 13, 2018, and FEMA declared Cumberland County as a designated area for Public Assistance funding for emergency work and the repair or replacement of disaster-damaged facilities.
At a Special Meeting conducted by telephone on September 17, 2018, Council adopted BOA 2019-3 to appropriate $2,360,000 across multiple funds for estimated initial expenditures for hurricane response and recovery. At this time, it has been determined that the expected expenditures will surpass the appropriation that was based upon preliminary estimates.
For the General Fund, an additional appropriation of $324,000 is recommended for the Operations Portfolio based upon increased expenditure projections for the Police, Fire and Parks, Recreation and Maintenance Departments. A portion of that appropriation ($133,000) relates to costs for deployment of the Urban Search and Rescue (USAR) to other locations for which the State will reimburse 100% of the cost. It is expected that the General Fund will be reimbursed $143,250 from FEMA and $180,750 from the State for these eligible expenditures.
For the Environmental Services Fund, an additional appropriation of $1,455,000 is recommended due to increased projected costs for debris removal and monitoring contracts. As noted in recent updates to Council, the amount of debris resulting from Hurricane Florence has far surpassed the debris totals from Hurricane Matthew. It is expected that the Environmental Services Fund will be reimbursed $1,091,250 from FEMA and $363,750 from the State for these eligible expenditures.
Issues/Analysis:
The requested additional appropriations are for operating budget expenditures related to Hurricane Florence response and recovery only. As recovery projects for infrastructure or facility repairs are developed and approved by FEMA, appropriations through capital project ordinances will be brought forth for Council adoption.
Budget Impact:
There is no expected impact upon City resources as the additional appropriations are for expenditures expected to be eligible for reimbursement through FEMA and the NCDPS.
Options:
Adopt Budget Ordinance Amendment 2019-7 as presented.
Do not adopt the budget ordinance amendment and provide additional direction to staff.
Recommended Action:
Staff recommends that Council move to adopt Budget Ordinance Amendment 2019-7 as presented.
Attachments:
Budget Ordinance Amendment 2019-7