DATE: May 5, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/Chief Financial Officer
Mike Lowe, Comptroller
Michael Walters Young, Budget & Analytics Manager
SUBJECT:
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Consideration of Ordinance 2017-15, 4th Quarter 2017 Budget Amendments (05/11/17 Finance 3-0, 05/23/17 BOMA 1st Reading 8-0; 6/13/17 BOMA 2ND Reading) 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 amending the Fiscal Year 2017 Budget for compliance with State budgeting guidance regarding:
1. Deficit Fund Balances (fund's net accumulated revenues and expenditures),
2. Deficit Cash Balances (for funds with year-end receivables not collected by June 30), and
3. Ensuring authorizations in place to balance each fund's budget on a cash basis on June 30, 2017.
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. If not in compliance with this requirement, approval of future bond issues by the State may be affected. As the amendments are occurring prior to fiscal year end, the amendments include estimates under a "worst case scenario" to ensure no fund balance deficit or cash balance deficit exists at June 30.
The amendments are as follows:
1. Administrative re-allocations between various fund departments. Departmental reallocations do not change the total of various fund budgets (General, Sanitation, Stormwater & Water & Sewer) Funds. For example, funds were budgeted in General Expenses for the merit pay program. The re-allocation allows those funds to be allocated from General Expenses to the appropriate departments. Other funds may have needs to redistribute but would not modify the total or change fund balance...
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