AGENDA #11a

MEMORANDUM

TO:                  Mayor and Town Council

FROM             W. Calvin Horton, Town Manager

SUBJECT:       Interim Budget Appropriations for 2002-2003

DATE:             June 24, 2002

The attached ordinance would provide for interim budget appropriations for about one month of the 2002-03 fiscal year, in accord with the discussion of the Council at the budget work session on June 12.  Adoption of a final budget would be scheduled for July 26 after more information concerning actions of the N. C. General Assembly is known. 

The attached ordinance would provide temporary appropriations for the purpose of paying employees, debt service and the usual and ordinary operating expenses for the Town’s operations until a final budget ordinance is adopted.

BACKGROUND AND DISCUSSION

Under State law, the Town is required to adopt an annual budget ordinance by July 1 or adopt interim appropriations until a final budget is adopted.  The interim appropriations provide for on-going operation of the Town services and ordinary expenses, but postpone the purchase of major capital equipment or any expenses in connection with new programs.

The ordinance provides for the payment of ordinary operating expenses in each fund for about one month.  Revenues to fund these interim appropriations are those not related to property taxes or interfund transfers dependent upon property taxes.  The interim ordinance also provides that the interim appropriations be charged to the proper appropriations in the final budget ordinance for 2002-03.

The interim appropriations and revenue sources we recommend for each fund are as follows:

RECOMMENDATION

We recommend adoption of the attached ordinance providing interim budget appropriations for 2002-03.

AN ORDINANCE AUTHORIZING INTERIM BUDGET APPROPRIATION FOR FISCAL YEAR BEGINNING JULY 1, 2002 (02-06-24/O-5)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, as provided by G.S. 159-16, the Council adopts interim appropriations as follows:

ARTICLE I

Interim appropriations for the purpose of paying salaries, debt service payments, and the usual expenses of the Town for the interval from July 1, 2002 to adoption of the 2002-2003 Budget Ordinance are hereby made:

ARTICLE II

All expenditures shall be made at basically the same rate of expenditure as provided for in the 2001-2002 Budget Ordinance.  These interim appropriations of funds, as set forth above, shall be charged to the proper appropriations in the final 2002-2003 Budget Ordinance.

ARTICLE III

This ordinance shall become effective July 1, 2002.

This the 24^th day of June, 2002.