Adopt Resolution #16-03-043 Amending 2015 General Fund Budget

Purpose:  Annually the city adopts a General Fund Budget.  The city is required to amend the budget to reflect actual revenues/expenditures for the year.  The amended budget is included in the city's annual Comprehensive Annual Financial Report (CAFR).

Background:  Attached to this case is Resolution #15-03-043 amending 2015 activity of the General Fund.  This is primarily a 'housekeeping' item and is done on an annual basis.  The amended budget also allows the determination of whether there is excess revenue to be transferred from the General Fund to the four (4) respective funds as outlined in the Financial Policy for the Purpose of Allocation of Excess/Deficient General Fund Revenues.  Per the policy, when actual revenues exceed actual expenditures in a given year, the excess shall be allocated as follows:  Any excess shall be first allocated to "Assigned" fund balance to bring that portion of fund balance to an amount equal to fifty percent of the next years adopted operating budget plus prior year encumbrances  plus compensated absences (earned sick and vacation time expense).

For year ending 2015, it is estimated that the city will exceed its fund balance requirements for 2016 by approximately $1,182,302.  This transfer has been completed and is noted in the final General Fund Budget numbers.  A summary of the excess revenue determination is included on the last page (page #17) under the General Fund Budget document that is attached.


 

As noted, all line items and departments of the General Fund Budget is attached.  Those items shown in blue are those line items that went over budget.  An overall summary of the 2015 revenue and expenditures is included on pages 16 and 17 of the document.

A large portion of the excess revenue is attributed to building permits.  Community Development Director Gladhill provided the following list of building projects that factored into the revenue.

• Parkview East (PSD, LLC)
• Sunwood Village (CommonBond Communities)
• Life Fitness 50K SF Expansion (unanticipated at time of budget preparation)
• Dedicated Networks 20K SF Expansion (unanticipated at time of budget preparation)
• Eighty-Five (85) New Detached Single-Family (stronger than forecasted/anticipated)
• Six (6) Townhome Buildings/Thirty-Nine (39) Townhome Units (average = eight [8] units per year)

 Mr. Gladhilll notes that several of these projects were unanticipated at the time of 2015 budget projections on permits revenue.  As most of the projects will be completed in 2016, inspection expenses related to these projects have been encumbered and were netted out of the excess revenue transfer. 



 

As the activity has already occurred for year 2015, the only recommendation is to approve Resolution #16-03-043 amending the 2015 General Fund Budget.

Motion to adopt Resolution #16-03-043 amending the 2015 General Fund Budget.