Finance Committee

CITY OF HENDERSONVILLE SPECIAL-CALLED FINANCE COMMITTEE JANUARY 9th, 2024, at 6:30 p.m. 101 Maple Drive North, Hendersonville, TN 37075 I. Call to Order by the Chairman II. Acceptance of agenda III. Minutes IV. Public Comments V. Ordinances and Resolutions Clary 1. Ordinance 2023-28 an ordinance amending Budget Ordinance 2023-11 for 2-5 appropriations to repair certain City property damaged by tornado VI. Other Agenda Items VII. Adjournment Anyone needing accommodations due to disabilities, please contact the ADA Coordinator at 615-822-1016 at least 24 hours prior to the meeting. 1  ORDINANCE 2023-28 Sponsor: Clary AN ORDINANCE AMENDING BUDGET ORDINANCE 2023-11 FOR APPROPRIATIONS TO REPAIR CERTAIN CITY PROPERTY DAMAGED BY TORNADO WHEREAS, on December 9, 2023, a tornado and storms damaged certain City property; WHEREAS, the Budget Ordinance was based on projected revenues and anticipated expenditures for Fiscal Year 2023; and WHEREAS, the operating Budget for Fiscal year 2024 requires certain adjustments to incorporate appropriations made necessary due to the tornado and storms: NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF MAYOR AND ALDERMEN OF THE CITY OF HENDERSONVILLE, TENNESSEE, that the City’s Fiscal Year 2024 Budget Ordinance, Ordinance 2023-11, is hereby amended in accordance with the adjustments set forth in the attached Exhibit A. This ordinance shall take effect on the earliest date allowed by law. First Reading: ______________________ Second Reading: ______________________ APPROVED: JAMIE CLARY, Mayor ATTEST: ___________________________________ TAMARA INGERSOLL, City Recorder APPROVED AS TO FORM: ____________________________________ LANCE A. WRAY, City Attorney 2  LEGISLATIVE HISTORY Ordinance 2023-28 Sponsor: Clary Committee: Finance Date of Committee Meeting: January 9th, 2024 Committee Recommendation: 3 DATE: January 9th, 2024 ORDINANCE/RESOLUTION # Ordinance 2023-28 For BOMA to amend budget ordinance 2023-11 by SPECIFIC REQUEST/ RECOMMENDATION: appropriating funds in the amount of $1,000,000 for expenses related to the December 9, 2023 tornado. STAFF REPORT REPORT PREPARED BY: Tamara Ingersoll, Finance Director BACKGROUND: 1 On December 9, 2023 a tornado caused damage throughout Sumner County. The City of Hendersonville suffered from damage in the form of downed power lines, damaged traffic signals, and damage to various city buildings and parks. DISCUSSION: 2 City buildings and parks are insured through Public Entity Partners (PEP). The city has begun the process of gathering quotes to repair the damages. Staff have met with the insurance adjusted and various contractors to facilitate the repair work caused by the tornado. The repair work is insured and will net out to the deductible cost of the insurance policy. The total cost of the repair work is being determined, but our initial estimate is $700,000, subject to change as actual work is completed. Additionally, due to the amount of debris from the tornado, the City has contracted with an outside contractor to pick up debris in the public right of way. It is anticipated that the costs for debris removal will be covered by FEMA. The total cost of the debris removal is being determined, but our initial estimate is $300,000, subject to change as actual work is completed. FISCAL IMPACT: 3 A budget amendment is needed for $1,000,000. The City anticipates receiving insurance reimbursement in the amount of $700,000 and FEMA reimbursement in the amount of $300,000 to offset the increased appropriations. ATTACHMENTS: 4 Exhibit A – Budget Amendment Worksheet. 4  EXHIBIT A BUDGET AMENDMENT WORKSHEET Requested Requested Expenditure Revenue Use of Fund Account Code Account Name Current Budget Amendment Amendment Balance Adjusted Budget Justification Expenses for insurance related items from the 110-000-41620-0013-0000-550100- INSURANCE CLAIM DEDUCTIBLE $ 250,000.00 $ 700,000.00 $ 950,000.00 December 9, 2023 tornado Expenses for debris removal from the 110-000-41620-0013-0000-525900-FEMA OTHER PROFESSIONAL SERVICES $ - $ 300,000.00 $ 300,000.00 December 9, 2023 tornado 110-000-00000-0000-0000-436350- INSURANCE RECOVERIES $ 250,000.00 $ 700,000.00 $ 950,000.00 Anticipated insurance reimbursement 110-000-00000-0000-0000-433130-FEMA FEMA GRANTS $ - $ 300,000.00 $ 300,000.00 Anticipated FEMA reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 500,000.00 $ 1,000,000.00 $ 1,000,000.00 $ - $ 2,500,000.00 5