Submitted By
Steven Drazner, Chief Financial Officer
Reviewed By
Agenda Item Title
Title
An Ordinance Amending the Fiscal Year 2019 Annual Budget
End
Overview
Overview
An ordinance has been prepared to appropriate funds in FY19 that were unspent in FY18 for capital and affordable housing activity which was not completed prior to December 31, 2018 totaling $5.6 million. In addition, a request to carry forward unspent 2018 funds for staff training in the amount of $676 and two new budget requests totaling $16,766 are also being made.
Body
Staff Recommendation
Approval.
Fiscal Impact
The Village operates on a calendar fiscal year and annually, capital construction projects may not be completed due to various factors including but not limited to completion of punch list items, project approvals and/or final project close out by State agencies and weather related impacts to construction schedules.
The attached Ordinance recommends amendments increasing the 2019 budget by $5,674,428 which consists of $5,657,662 of unspent funds from the 2018 budget requesting to be carried forward into the current fiscal year and two relatively small new budget requests totaling $16,766.
Of the requested carryover budget amounts from the prior year, approximately $5.1 are for 2018 funded (but unspent) capital projects, $498K in Affordable Housing projects budgeted in the prior year but due to timing, will start in the current fiscal year and $676 in staff training.
A summary of the breakdown of amendments by Fund is as follows:
General $517,764
Madison TIF $1,741,945
CDBG $210,018
Equip Replacement $87,500
Capital Improvement $1,849,114
Water/Sewer $1,200,521
Parking $67,566
Background
The annual budget which provides a ceiling on spending by account, department, and fund is approved each December for the subsequent fiscal year. While every effort is made during the budget process to project and forecast spending for the following year, there are instances when a budget amendment may be required in the following situations:
1) Funds were not entirely spent in the preceding year and it is thus necessary to shift the unspent budget into the current fiscal year (a “Carryforward” budget amendment).
2) Unforeseen expenditures which were not budgeted are necessary (a “New Money” budget amendment).
3) Funds are merely moved from one account to another within the budget (a “Reclassification” budget amendment).
Alternatives
Additional information will be provided upon request.
Previous Board Action
Ordinance 18-436 adopted on December 10, 2018.
This amendment also includes funding the holiday lights program as previously discussed at the last Regular Board Meeting. The funding will come from fund balance.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
N/A.
Intergovernmental Cooperation Opportunities
N/A.
Performance Management (MAP) Alignment
N/A.