Agenda Item Executive SummarY
Item title
title
Enact the Annual Budget Ordinance Amendment to Re-Appropriate Funds for Prior Year Encumbrances and Other Commitments.
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 2024 to FY 2025.
body
ACTION/Decision points
In order 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, 2024, 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 2024-2025 budget. Staff recommends carrying forward a total of $16,572,815 across all funds from last year to the 2024-2025 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, 2024. These projects include: Land Use Management Ordinance (LUMO) update $474,649, reimagining community safety $43,420, the penny for housing initiative $2,124,494, climate action plan $905,236, vehicle replacements $801,431, Transit ARPA funding held in reserve until projects are identified $4,605,835, North South bus rail transit project $4,026,687, transit vehicles ordered but not delivered/invoiced $10,467,670, and stormwater projects $2,108,251. 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 $16,621,073 across all funds from last year to the 2024-2025 budget.
Grant Fund Carryovers
• The attached ordinance would re-appropriate $833,431 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 $2,724,830 requires re-appropriation in FY 2025. The attached amendment would re-appropriate funding for the completion of the RAISE grant project, Fire Station 4 design, Council Chamber upgrades, 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 $16,572,815 in encumbrances and $16,621,073 for other items that were not completed in the prior year for a total of $33,193,888.
Complete Community connection
N/A
Attachments
Budget Carryforward - Budget Ordinance Amendment
Budget Carryforward - 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, 2024” (2024-09-11/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, 2024” as duly adopted on June 5, 2024, be and the same is hereby amended as follows:
This the 11th day of September, 2024.
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