TITLE
HOLD a public hearing and consider an ordinance amending the FY 2020 Annual Budget of the City of Killeen to authorize the carry forward of FY 2019 expenditure budgets to the FY 2020 budget.
SUMMARY
DATE: January 21, 2020
TO: Kent Cagle, 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.
There are contracts and commitments for projects and/or services that were not completed nor received by the City prior to the close of the fiscal year that ended September 30, 2019. In order to complete these projects and/or services, FY 2019 appropriations need to be carried forward to the Annual Budget for FY 2020 as a budget amendment.
|
FY 2019 Carry Forward |
Revenue Budget |
|
Capital Improvement Funds |
$4,584 |
|
Internal Service Funds |
431,147 |
|
TOTAL |
$435,731 |
|
FY 2019 Carry Forward Expenditure Budget |
|
|
General Fund |
$573,511 |
|
Special Revenue Funds |
977,957 |
|
Capital Improvement Funds |
11,572,679 |
|
Water and Sewer Fund |
19,701 |
|
Drainage Utility Fund |
3,300 |
|
Internal Service Funds |
511,761 |
|
TOTAL |
$13,658,909 |
THE ALTERNATIVES CONSIDERED:
(1) Approve the attached ordinance amending the Annual Budget for FY 2020 to re-appropriate funds from the fiscal year that ended September 30, 2019; (2) Do not approve the ordinance.
Which alternative is recommended? Why?
Staff recommends option 1 to approve the ordinance amending the Annual Budget for FY 2020 to re-appropriate funds from the fiscal year that ended September 30, 2019.
CONFORMITY TO CITY POLICY:
The City’s Financial Governance Policies, Section V. Budget Administration (B)(1) states that City Council may amend or change the budget by ordinance.
FINANCIAL IMPACT:
Upon approval, accounts will be amended in the FY 2020 budget as follows:
An increase to General Fund expenditure accounts by $573,511.
An increase to Special Revenue Funds’ expenditure accounts by $977,957.
An increase to Capital Improvement Funds’ revenue accounts by $4,584.
An increase to Capital Improvement Funds’ expenditure accounts by $11,572,679.
An increase to Water and Sewer expense accounts by $19,701.
An increase to Drainage Utility expense accounts by $3,300.
An increase to Internal Service Fund revenue accounts by $431,147.
An increase to Internal Service Fund expense accounts by $511,761.
What is the amount of the expenditure in the current fiscal year? For future years?
The carry forwards from FY 2019 to FY 2020 budget for revenues total $435,731 and for expenditures total $13,658,909.
Is this a one-time or recurring expenditure?
This is a one-time expenditure.
Is this expenditure budgeted?
A budget amendment is required.
If not, where will the money come from?
The attached budget amendment recognizes the carry forward of FY 2019 expenditure budgets to the FY 2020 budget.
Is there a sufficient amount in the budgeted line-item for this expenditure?
Upon approval of the budget amendment.
RECOMMENDATION:
Staff recommends that the City Council approve the ordinance amending the FY 2020 Annual Budget.
DEPARTMENTAL CLEARANCES:
City Attorney
Finance
ATTACHED SUPPORTING DOCUMENTS:
Ordinance