DATE: February 3, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Michael Walters Young, Budget & Analytics Manager
SUBJECT:
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Consideration of Ordinance 2016-002, an Ordinance to Amend the FY2015-2016 Budget; (02-11-16 Finance 4-0, 02-23-16 BOMA 8-0; 03-22-16 6-0) THIRD AND FINAL READING
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning proposed amendments to the current budget.
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Purpose
The purpose of this item is to amend the Fiscal Year 2016 Budget for compliance with State budgeting guidance regarding:
1. Ensuring authorizations in place to balance each fund’s budget on a cash basis on June 30, 2016.
Background
The State Comptroller has provided guidance that budget amendments are to be on the cash basis and must occur prior to fiscal year end (June 30) to ensure no fund has a deficit fund balance or deficit cash balance at June 30.
The amendments are as follows:
1. Increase of $327,053 in revenue and expenditure to various departments within the General Fund.
The revenue increases needed to offset additional expenditures are:
a. $211,343 increase in Local Sales Taxes. Year-to-date (through November collections) the City is $439,465 over budgeted estimates.
b. $115,170 increase in Alcohol Taxes. Year-to-date (through December collections) the City is $229,966 over budgeted estimates.
The expenditure increases are:
c. $274,053 for leave balance payouts for retiring employees in various departments.
d. $30,000 for additional personnel costs in various departments.
e. $23,000 to reimburse Williamson County for half the expenses of the Everbridge community notification system.
2. Increase of $1,096,483 in revenue and $1,176,483 in expenditure to the Sanitation & Environmental Services Fund.
The revenue increases needed to offset additional expenditures are:
a. $1,096,483 increase in Tipping Fees for higher revenue collections produced by additional tonnage coming across the scales at the transfer station.
The expenditure increases are:
b. $1,096,483 for increased costs of disposal produced by additional tonnage coming across the scales at the transfer station.
c. $125,000 for assorted building repair/maintenance and safety enhancements recommended by risk managers at the transfer station.
d. $50,000 for additional expenses relating to the installation of cranes and safety enhancements at the transfer station to more efficiently move and load refuse.
e. $22,000 for critical reconstruction of concrete pads leading to and coming from scale #1 at the transfer station.
The overage of $247,000 will be made up later in the fiscal year through another budget amendment.
3. Increase of $175,322 in revenue and expenditure to the Road Impact Fund for payment of road impact offsets to Carothers Development Partners.
4. Increase of $135,000 in expenditures to the Hotel/Motel Fund for the following projects:
a. $30,000 for expenditures related to the Parks Master Plan. This was originally budgeted in FY 2015, but no budget was brought forward in Fiscal Year 2016. Unexpended fund balance from FY 2015 is available for this purpose.
b. $105,000 for expenditures related to the 3rd Avenue/Bicentennial Park River Walkway. This was originally budgeted in FY 2015, but no budget was brought forward in Fiscal Year 2016. Unexpended fund balance from FY 2015 is available for this purpose.
5. Increase of $47,998 in expenditure to the Capital Projects Fund for the following project:
a. $47,998 for final payment to the Tennessee Department of Transportation for the McEwen Drive Interchange (State Project IM-65-2(83), State Contract # 94002-3171-04).
This is the fourth budget amendment during this Fiscal Year to the budget. We anticipate bringing forward at least one additional amendment in future months for year-end revenue and expense adjustments.
Financial Impact
The amendments, as proposed, would result in the following financial impact:
1. General Fund: No change in fund balance.
2. Sanitation and Environmental Services Fund: Decrease of fund balance by $197,000. Deficit to be made up through additional revenues or a general fund transfer on a later budget amendment.
3. Road Impact Fund: No change in fund balance.
4. Hotel/Motel Fund: Decrease of fund balance of $135,000. Deficit will not be made up in FY 2016; however fund balance has left over money originally budgeted in FY 2015 and planned to be spent on projects contained within the budget amendment.
5. Capital Projects Fund: Decrease of Fund Balance of $47,998. Deficit to be made up through future revenues, general fund transfer, and/or bond proceeds. TER FINANCIAL IMPACT HERE
Recommendation
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Staff recommends approval of the amendments.