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Enact the Annual Budget Ordinance Amendment to Re-appropriate Funds for Prior Year Encumbrances and Other Commitments.
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Staff: |
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Amy Oland, Director |
Business Management |
Overview: Enacting the attached budget ordinance amendment appropriates funds for prior year encumbrances, previously approved grants, and capital improvement projects in various funds for the 2022-23 fiscal year.
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Recommendation(s): |
That the Council enact the budget ordinance amendment to adjust for encumbrances and other commitments from FY 2022 to FY 2023.
Key Issues:
Each year, as the new fiscal year budget gets underway, we ask the Council to re-appropriate funds for activities that cross over July 1st. These activities were anticipated and planned for in our budget preparation and are for routine activities and longer-term projects.
• Encumbrances
Encumbrances are obligations the Town committed to before June 30, 2022 through a contract or a purchase order. Since the materials or services weren’t delivered before June 30th, we need to re-appropriate those funds in the 2022-2023 budget. Staff recommends carrying forward a total of $6,706,074 across all funds from last year to the 2022-2023 budget.
• Other Commitments
In addition to outstanding contracts and purchase orders, there are items that were planned for in our budget preparation but not completed before June 30, 2022. These projects include: Land Use Management Ordinance (LUMO) update $152,983, training initiatives $263,029, reimagining community safety $93,842, affordable housing $299,400, the penny for housing initiative $942,196, climate action plan $465,295, vehicle replacements $214,551, Transit ARPA funding held in reserve until projects are identified $5,844,446, and stormwater projects $580,228. Other carryforward items include workforce development training, Council-approved planning initiatives, police federal and state drug seizure funds, traffic studies, facility and vehicle maintenance, technology projects, and other ongoing initiatives that were not encumbered. Staff recommends carrying forward a total of $11,019,258 across all funds from last year to the 2022-2023 budget.
• Grant Fund Carryovers
The attached ordinance would re-appropriate $99,971 for unspent grants in the Grant Fund as follows:
• Transit Grant Carryovers
In addition to items encumbered, the Transit Fund has residual balances on grants that were awarded in FY 2022 that are not complete and will carry over to FY 2023. There is one grant with a residual balance from FY 2022 and that is the Transit Oriented Development grant. Expenditures remaining on the grants total $360,240, with federal funding available of $284,693. The matching funds for the grants were established in the prior year’s budget and are re-appropriated from fund balance by the amendment attached.
• CIP Project Carryovers
Other than the amounts included for encumbrances above, the balance remaining for capital projects that are underway of $1,207,977 requires re-appropriation in FY 2023. The attached amendment would re-appropriate funding for the completion of Post Office/Courthouse roof replacement, bike/ped improvements, parks and playgrounds, technology projects, and facility capital maintenance.
Fiscal Impact/Resources: The carryover budget amendment is intended to re-appropriate budget that was committed to in the prior fiscal year. Encumbered funds that were not spent were held in the fund balance of the various funds, or in additional grant funds awarded by agencies. The amount being carried over is $6,716,849 in encumbrances and $11,021,303 for other items that were not completed in the prior year for a total of $17,725,332.
Where is this item in its process?
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Attachments: |
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• Budget ordinance amendment |
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• Summary listing of items carried over |
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2022” (2022-09-14/O-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2022” as duly adopted on June 8,2022, be and the same is hereby amended as follows:
This the 14th day of September, 2022.
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
By enacting the budget ordinance amendment, the Council appropriates funds for prior year encumbrances, previously approved grants, and capital improvement projects in various funds for the 2022-23 fiscal year.