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HomeMy WebLinkAboutSupplemental Questions from Robert GoldbergRobin Roberts From: Robert Goldberg <rgoldberg@live.com> Sent: Sunday, June 24, 2018 10:03 AM To: Ellery A. Deaton; Mike Varipapa; Schelly Sustarsic; Thomas Moore; Sandra Massa-Lavitt Cc Robin Roberts; Vikki Beatley; Steve Myrter, Jill Ingram Subject: Questions and Comments on Pier Project Attachments: 6.25.18.Questions 1.doc Dear Council and Staff, Please find attached my questions and comments for Monday night related to pier project. Thank you in advance for your consideration, Robert Goldberg Questions & Comments for 6/25/18 Item L: Pier Page 5 of the staff report states that the Budget Amendment will allocate $4.7 million of General Fund (GF) reserves for the project. However, the only GF account ("001") listed in the Amendment calls for an increase Transfer Out to CIP for only $2,845,600. Is the fronting" of GF money to pay bills before receipt of insurance reimbursements going to temporarily reduce our GF reserves i "on pope/') by $1.8 million or $4.7 million? The transfer of either $2.8 million or $4.7 million of the GF reserves into the Tidelands Fund will potentially cause a lack of clarity for the Council and public regarding what the true status is of our GF reserves. This is likely to occur not only during the FY 18-19 discussions about the necessity for a tax increase, but may also extend into the budget process for FY 19-20. Everyone will have to remember that our true GF reserves are millions higher than any reported official accounting figure. I wonder if this could all be avoided by simply amending the projected Insurance Reimbursement payment (acct 034-000-30969) on page 19 of the FY 18-19 Budget from $1,865,000 to $4,700,000. Why is this simpler approach not acceptable? I appreciate that payment of contractor invoices prior to receipt of insurance reimbursements may result in a negative" or deficit accounting ledger for a few weeks in the Capital Projects Fund (045-333-44000), but what consequence would that have? Pages 5 & 6 of the staff report describe a public outreach program by a consultant, MBI Media, which includes creating and mailing out postcards, a website, and two construction signs. How much is this public outreach campaign going to cast? Can we cancel this, and just continue to inform the public of the pier status as we have during the past two years? Page 19 Revenue Summary of the adopted FY 18-19 Budget indicates that the Tidelands Fund is expected to receive or has received in FY 17-I8 an Insurance Reimbursement (acct 034-000-30969) of $1,468,000. Is this not correct with perhaps the real amount being about $100,000 for reimbursement for just Engineering & Design? Page 19 Revenue Summary of the adopted FY 18-19 Budget indicates that the Tidelands Fund is expected to receive in FY 18-19 an Insurance Reimbursement (acct 034-000-30969) of $1,865,000. During the budget presentations, we were told that at least a portion of this money was to be an advance received before construction costs accrued, and thus, would obviate the need for the General Fund to make its typical annual payment (around $700,000) to subsidize the operating expenses of the Tidelands Fund. Not having to make this operating transfer into the Tidelands reduced the GF budget deficit. However, if FY 18-19 insurance payments are just going to be quarterly reimbursements of paid expenses, then won't the GF still need to subsidize the Tidelands operating expenses for FY 18-19?