TITLE
HOLD a public hearing and consider an ordinance amending the FY 2021 Annual Budget of the City of Killeen to increase revenues and expenditures in multiple operating, special revenue, and capital improvement project funds.
SUMMARY
DATE: April 20, 2021
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
VIA: Miranda Drake, Director of Budget
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
City staff monitors financial activity and forecasts yearend results to ensure compliance with the budget approved by City Council. This process assists in identifying accounts that may require a budget amendment during the fiscal year. The City Charter authorizes the City Manager to approve budget transfers between accounts of the same department. City Council must approve transfers between departments and to increase the overall fund appropriations. The purpose of this budget amendment is described below and grouped by fund type.
Operational Funds -
There are three operational fund items addressed in this budget amendment:
1. As a result of the Governmental Accounting Standards Board (GASB) statement no. 87, the rules regarding the accounting of leases have changed. In the year in which a lease is made, the fund must appropriate the revenue and expense of the total cost of the asset. In addition, the lease payments must be broken down and reported as principal and interest payments. This budget amendment includes three leases in the General Fund totaling $171,220 and one lease in the Solid Waste Fund in the amount of $192,726.
2. Appropriation of the remaining funds from the Coronavirus Aid, Relief and Economic Security Act (CARES Act) grant received by Aviation in FY 2020. The City of Killeen was awarded $2,217,498 in CARES Act funding in FY 2020 and Aviation planned to use the grant funding over ...
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