TO:

AGENDA #4c

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Year-End Budget Amendment for 1999-2000

DATE: June 26, 2000

The attached budget amendment reflects technical accounting and budget adjustments or transfers for the General Fund that do not affect the overall current revenue and expenditure estimates for the funds as presented in the Manager's Recommended Budget for 2000-2001. Below is a brief description of each item.

General Fund

In the General Fund, the attached amendment would:

Increase General Fund expenditures by $189,000 to account for the lease purchase authorized earlier this year for acquisition of the mobile data software system and computer equipment in the Police Department. In accord with appropriate accounting principles, the full cost of $189,000 for this purchase should be recorded in the year of purchase. The full cost is then offset by the bank loan for the purchase, which is recorded as revenue in the current year.

Increase the General Fund budget to reflect the receipt of $129,012 in grant funds from the Federal Emergency Management Administration (FEMA) to reimburse the Town’s eligible expenses related to both Hurricane Floyd and the severe snow and ice storms earlier this year. These funds were anticipated earlier this year in our budget estimates. The amendment would increase budgeted expenditures in various departments by a total a $129,012 for costs related to these storms.

Increase the Engineering Department budget by $5,500 to provide funding for facilitation services for the Little Creek Area neighborhood traffic management work group based on actions by the Council at its June 12 regular meeting. Funding is available from additional investment revenue this year now expected to be greater than originally budgeted.

Transportation Fund

In the Transportation Fund, the attached amendment would increase the Transportation budget by $2,519 to also reflect the reimbursement from FEMA for costs related to the hurricane and snowstorms.

Vehicle Replacement Fund

In the Vehicle Replacement Fund, the attached ordinance would increase appropriations by $568,190 to bring forward unspent funds from the prior year 1998-99. Of this amount, $372,273 was for actual encumbrances at year-end last year that were inadvertently omitted from the reappropriations for all other funds adopted by the Council in September, 1999. The balance of $195,917 in unspent funds also needs to be reappropriated to the current year to cover this balance of expenditures which occurred in the current year.

In addition, the amendment would add $46,400 to reflect the receipt and expenditure of State grant funds for the alternative fuel vehicles received this year.

Downtown Service District Fund

For the Downtown Service District Fund, the attached amendment would reappropriate $3,875 in obligations from last fiscal year (1998-99) which had not been expended at June 30, 1999.

RECOMMENDATION

That the Council adopt the attached year-end budget amendment for 1999-2000.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 1999 (2000-06-26/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, 1999” as duly adopted on June 14, 1999, be and the same is hereby amended as follows:

ARTICLE I

Current Revised

APPROPRIATIONS Budget Increase Decrease Budget

GENERAL FUND

Public Works 8,779,956 107,527 8,887,483

Inspections 495,759 2,380 498,139

Engineering 912,093 5,500 917,593

Police 7,803,420 193,500 7,996,920

Fire 3,505,557 14,225 3,519,782

Library 1,692,881 380 1,693,261

TRANSPORTATION

FUND 6,283,777 2,519 6,286,296

VEHICLE

REPLACEMENT FUND 2,368,200 614,590 2,982,790

DOWNTOWN SERVICE

DISTRICT FUND 46,500 3,875 50,375

ARTICLE II

REVENUES