DATE: May 3, 2019
TO: Board of Mayor and Aldermen
Budget & Finance Committee
FROM: Eric Stuckey, City Administrator
Kristine Brock, Assistant City Administrator/Chief Financial Officer
Michael Walters Young, Budget & Strategic Innovation Manager
SUBJECT:
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Consideration of Ordinance 2019-16, 4th Quarter 2019 Budget Amendments. (05/09/19 Finance 3-0; 05/28/19 1ST BOMA Reading 7-0; 06-11-19 BOMA 2nd Reading 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. 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, 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.
To stay ahead of this responsibility, staff is proposing three budget amendments.
The amendments are as follows:
1. Year-end Clean-ups: This is a "catch-all" amendment with many components. Fundamentally, however, its purpose is to achieve one thing: balanced budgets at the cost centers within each department and fund across the City. This is why in the Ordinance most of the notations are for Amendment #1.
In detail, the amendments to individual departments and funds are as follows:
General Fund:
Revenues:
- Local Sales Tax: Increase by $300,000. Thru 8 months of the fiscal year, year-over-year collections are up 5.7%, and even if collections drop to the level we anticipated when budgeting for FY 2019 over the last 4 months of the fiscal year, we believe that incr...
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