TO: Roger L. Stancil, Town Manager
FROM: Kenneth C. Pennoyer, Director of Business Management
SUBJECT: Annual Budget Ordinance Amendment to Reappropriate Funds for Prior Year Encumbrances and Other Obligations
DATE: September 8, 2008
The attached budget ordinance amendment would appropriate funds for encumbrances, previously approved grants, and capital improvement projects in various funds from the 2007-08 fiscal year.
BACKGROUND AND DISCUSSION
Encumbrances
After each fiscal year end, Council is requested to amend the current year budget ordinance to provide funding for encumbrances from the prior fiscal year. Encumbrances are obligations incurred by issuance of purchase orders for which payments were not made as of June 30, 2008, because materials or services had not been delivered. In accordance with generally accepted accounting principles, encumbrances were not included as expenditures for 2007-08 and must be reappropriated for payment during the 2008-09 budget.
Funds for these expenditures are shown in the 2007-08 Annual Financial Report on the balance sheets for each fund under the heading "Fund Balance-Reserved for Encumbrances."
Grant Fund Carryovers
The attached amendment would reappropriate $522,195 for unspent grant funds into the Grant Fund as follows:
|
Grant |
Total Grant |
Balance to |
|
|
20501 |
NC E-Authority Grant |
50,000 |
50,000 |
|
20537 |
Orange County ABC Contribution |
6,916 |
5,139 |
|
20539 |
Project Turnaround Substance Abuse |
138,440 |
24,295 |
|
20540 |
Youth Initiative Partnership |
10,844 |
10,160 |
|
20551 |
Camp Escapde |
4,563 |
4,563 |
|
20557 |
SAFER Grant |
1,009,470 |
286,851 |
|
20565 |
Surface Transportation Direct Allocation Grant |
522,000 |
56,105 |
|
20567 |
Project Homeless |
5,425 |
128 |
|
20568 |
Transit Planning Grant |
84,954 |
84,954 |
|
Total |
2,145,806 |
522,195 |
|
CIP Project Carryovers
In addition to the reappropriations for encumbrances in various funds and grants, the following amendment would also reappropriate a net total of $1,168,958.35 appropriated last year for various projects in the Capital Improvements Fund that were incomplete in 2007-08, and not encumbered, as shown below.
|
Based on CIP Fund Reconciliation at June 30, 2008 |
|||
|
Project |
Encumbrances |
Needed to Complete Projects |
Total Recommended for Reappropriation |
|
Buildings / Facilities |
|||
|
Police HQ Capital Maintenance |
$4,000.00 |
$76,000.00 |
$80,000.00 |
|
Fire Station # 2 Capital Maintenance |
35,500.00 |
62,794.00 |
98,294.00 |
|
Fire Station # 3 Capital Maintenance |
2,800.00 |
71,813.00 |
74,613.00 |
|
Library Capital Maintenance |
0.00 |
49,500.00 |
49,500.00 |
|
Extraordinary Maintenance |
3,109.07 |
4,695.93 |
7,805.00 |
|
Town Hall: Replacement of HVAC |
15,829.59 |
568,300.41 |
584,130.00 |
|
Totals Buildings / Facilities |
61,238.66 |
833,103.34 |
894,342.00 |
|
Infrastructure |
|||
|
Sidewalks |
7,835.00 |
26,527.00 |
34,362.00 |
|
Railroad Signals Local Match |
0.00 |
18,000.00 |
18,000.00 |
|
Bikeways |
0.00 |
7,138.00 |
7,138.00 |
|
Jay Street Paving |
914.49 |
4,999.51 |
5,914.00 |
|
Traffic Signal System Upgrade |
75,876.90 |
575.10 |
76,452.00 |
|
Cemetery Beautification |
53,460.00 |
91,440.00 |
144,900.00 |
|
Total Infrastructure |
138,086.39 |
148,679.61 |
286,766.00 |
|
Facilities Leased Out |
|||
|
Old Post Office Capital Maintenance |
8,298.00 |
0.00 |
8,298.00 |
|
Total Facilities Leased Out |
8,298.00 |
0.00 |
8,298.00 |
|
Parks and Other Public Use Facilities |
|||
|
Small Parks Improvements |
850.00 |
75,603.00 |
76,453.00 |
|
Greenways |
37,022.87 |
5,553.13 |
42,576.00 |
|
Sport Art Gym |
0.00 |
16,686.00 |
16,686.00 |
|
Community Center Renovations |
30,622.00 |
31,244.00 |
61,866.00 |
|
Miscellaneous Parks Projects |
46,670.00 |
58,089.00 |
104,759.00 |
|
Total Parks and Other Public Use Facilities |
115,164.87 |
187,175.13 |
302,340.00 |
|
Communications |
|||
|
Fiber Optic Network |
37,345.73 |
0.27 |
37,346.00 |
|
Total Communications |
37,345.73 |
0.27 |
37,346.00 |
|
Totals |
$360,133.65 |
$1,168,958.35 |
$1,529,092.00 |
RECOMMENDATION
That the Council enact the attached budget ordinance amendment reappropriating unexpended obligations from the 2007-08 fiscal year and the attached multi-year capital projects ordinance.