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 adjust revenue and expenditure accounts in multiple operating, special revenue, internal service, and capital improvement project funds.
SUMMARY
DATE: August 20, 2019
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
VIA: Miranda Drake, Director of Budget
SUBJECT: Year End Budget Amendment
BACKGROUND AND FINDINGS:
Each year, a budget amendment is needed at year-end to align budgets with anticipated expenditure levels. City staff has estimated revenues and expenditures through the end of the fiscal year and identified accounts that require a budget amendment. The City Manager is able to approve budget amendments between accounts of the same department and fund. The City Council must approve budget amendments between accounts of different departments and to increase the overall budget of a fund.
In accordance with Section X. Fund Balance of the Financial Governance Policies adopted by the City Council February 26, 2019, this budget amendment will transfer fund balance in excess of 22% to the Capital Projects Fund for each applicable operating fund. Also, to establish the Support Services Internal Service Fund (ISF), the major operating funds will transfer a proportionate amount based on the indirect cost allocation. In addition, the amendment will adjust and increase expenditure budgets in the General Fund, Water and Sewer Fund, Solid Waste Fund, Drainage Utility Fund, multiple special revenue funds, internal service funds, and capital improvement project funds.
THE ALTERNATIVES CONSIDERED:
No alternatives were considered.
Which alternative is recommended? Why?
A budget amendment is required to transfer excess fund balance to the Capital Project Funds, establish the Support Services ISF, and to address forecasted budget shortfalls.
CONFORMITY TO CITY ...
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