DATE: August 3, 2018
TO: Board of Mayor and Aldermen
Budget & Finance Committee
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/Chief Financial Officer
Michael Walters Young, Budget & Strategic Innovation Manager
SUBJECT:
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Consideration of Ordinance 2018-44, 1st Quarter 2019 Budget Amendments (08/09/18 Finance 3-0, First BOMA Reading 8/28/18 8-0, 2nd BOMA Reading 9/25/18 8-0) 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 amending the Fiscal Year 2019 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, 2019.
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.
In order to stay ahead of this responsibility, staff is proposing five budget amendments.
The amendments are as follows:
1. General Fund: This amendment has multiple components:
a. Increase of Allocation from Fund Balance of $1,061,725. This draw is necessary to balance the General Fund for the remainder of FY 2019. Of this amount, $825,000 is being drawn to account for additional expenses incurred in the Public Safety Communications System Upgrade, budgeted out of fund 311. More explanation will follow under Amendment #3. Staff points this out here, however, because we a majority of the fund balance being used for this purpose ($646,000 of the $825,000) comes from higher than budgeted returns from the City's Share of the Hall Income Tax in FY 2018. We only budgeted $1,000,000 and receive $1,646,123.83.
The majority of the remainder of the Allocation from Fund Balance - $236,725 - comes from expenses which were not incurred but budgeted in FY 20...
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