TITLE
HOLD a public hearing and consider an ordinance amending the FY 2019 Annual Budget and Plan of Municipal Services of the City of Killeen to authorize the carry forward of FY 2018 expenditure budgets to the FY 2019 budget.
SUMMARY
DATE: January 8, 2019
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
VIA: Miranda Drake, Director of Budget
SUBJECT: Carry Forward Budget Amendment
BACKGROUND AND FINDINGS:
City Charter (Article VII, Section 71) states that all appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. During the course of a fiscal year, there are contracts and commitments that are entered into by the City that begin in the current fiscal year and are completed in the next fiscal year.
In addition, various projects are also funded through the Capital Improvement Program (CIP). The CIP is primarily funded through the issuance of revenue bonds, general obligation bonds, and certificates of obligation. These funds can only be used for purposes outlined in the bond covenant and, by their very nature, span multiple fiscal years.
A number of outstanding contracts and commitments for projects and/or services were not completed or received by the City prior to the close of the fiscal year ending September 30, 2018. In order to complete contracted projects and/or services, FY 2018 expenditure budgets need to be carried forward to the Annual Budget and Plan of Municipal Services for FY 2019 as a budget amendment.
The City of Killeen approves the CIP budget along with the Annual Budget and Plan of Municipal Services each year in September. Staff provides estimates based upon the best available information at that time, and the budget periodically needs to be amended as more accurate information becomes available. Changes in scope, schedules, or the project having remaining funds due to favorable...
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