AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Annual Re-Appropriate Funds for Prior Year Encumbrances and Other Commitments Budget Ordinance Amendment
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Amy Oland, Director, Business Management Department
STAFF RECOMMENDATION*
That the Council enact the budget ordinance amendment to adjust for encumbrances and other commitments from FY 2026 to FY 2027.
body
ACTION/DECISION POINTS*
To have the budgetary authority to spend this money, Council needs to enact the budget ordinance amendment.
LEGISLATIVE CONTEXT*
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.
BACKGROUND AND CONTEXT*
Encumbrances
• Encumbrances are obligations the Town committed to before June 30, 2026, 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 2026-2027 budget. Staff recommends carrying forward a total of $10,674,293 across all funds from last year to the 2026-2027 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, 2026. These projects include: street resurfacing $482,318, fire capital and uniforms $235,880, reimagining community safety $43,420, downtown projects $353,034, climate action plan $673,073, North South bus rapid transit project $10,539,810, bus system improvements $1,256,323, stormwater system improvement projects $2,842,655, stormwater bond projects $2,801,830, and Tropical Storm Chantal damage repairs $491,398. Other carryforward items include workforce development training, Council-approved planning initiatives, police federal and state drug seizure funds, facility and vehicle maintenance, technology projects, and other ongoing initiatives that were not encumbered. Staff recommends carrying forward a total of $14,923,111 across all funds from last year to the 2026-2027 budget.
Grant Fund Carryovers
• The attached ordinance would re-appropriate $340,641 for unspent grants in the Grant Fund as follows:
CIP Project Carryovers
• Other than the amounts included for encumbrances above, the balance remaining for capital projects that are underway of $4,320,840 requires re-appropriation in FY 2027. The attached amendment would re-appropriate funding for the completion of the RAISE grant project, Fire Station 4 demolition and design, bike/ped improvements, greenways, parks and playgrounds, and facility capital maintenance.
FINANCIAL IMPACT
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 $10,674,293 in encumbrances and $14,923,111 for other items that were not completed in the prior year for a total of $25,597,404.
ATTACHMENTS
Budget Carryforward - Budget Ordinance Amendment
Budget Carryforward - Summary Listing of Items Carried Forward
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