DATE: November 6, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, ACA/CFO
Mike Lowe, Comptroller
Michael Walters Young, Business Process Improvement Manager
SUBJECT:
title
Consideration of Ordinance 2015-92 - FY 2016 Budget Amendment #3. (11/12/15 Finance 4-0; 11/24/15 BOMA 1st Reading 6-0; 01/12/16 BOMA 7-0) THIRD AND FINAL READING
body
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:
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.
In order to stay ahead of this responsibility, staff is proposing three budget amendments.
The amendments are as follows:
1. Transfer of $695,818 from General Expenses to various departments within the General Fund. The four purposes of the transfers are:
a. Distribution of 2% wage increases and personnel reclassifications - $601,279
b. Pension Budget v. Actual reclassifications - $67,093
c. Additional cost for P91X Bus Service (already approved by BOMA) - $12,870
d. Improvements to Town Square - $18,500
2. Increase of $36,595 in revenue and expense to the Hotel/Motel Fund for the McEwen/I-65 Landscaping Improvements (previously approved by the BOMA).
3. Increase of $479,401 in expense to the Capital Projects Fund for the following projects:
a. $99,401 for additional expenses incurred for the conversion and integration process of utility billing into Infor.
b. $80,000 for the City’s contribution for a multi-use path near the new Columbia State Community College property.
c. $300,000 for the City’s contribution for street lights near the new Columbia State Community College property.
This is the third budget amendment during this Fiscal Year to the budget. We will bring forward another amendment next month for several capital projects and miscellaneous expense adjustments.
Financial Impact
The amendments, as proposed, would result in:
1. General Fund: No Change.
2. Hotel/Motel Fund: No Change.
3. Capital Projects Fund: Decrease of Fund Balance of $479,401. Deficit to be made up through future revenues and/or bond proceeds.
Recommendation
rec
Staff recommends approval of the amendments and the Ordinance.