Ordinance 2024-610 - Laserfiche WebLink

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The largest revenue variances (*) reflected in the breakdown of the prior year fund balance are licenses/permits, charges for services and miscellaneous revenues. a. Licenses/Permits are due to Building permit fees $2.2M b. Charges for Services are due to CCS programs $250k, Police Special Duty $155k, Parking $314k, and Stormwater Fees $300k c. Miscellaneous Revenues are due to Investment earnings $1.4M In addition, operating expenses reflect a variance of $5M. This is due to a final transfer of ARPA funds to cover budgeted expenses of $4,560,000. You may recall that after the 2022 audit, you approved a budget amendment to reclassify the eligible expenses to the ARPA Fund as per the auditor's recommendation. These funds are exhausted, and a transfer of this magnitude is not expected to occur again. $4.6M plus the PO carryover of $7M leaves a customary $1.4M of unaudited fund balance increase. The city historically has been fiscally prudent in estimating revenues and expenditures to never end with a deficit. This is a responsible and customary way to budget. General Notes The first Budget Amendment for Fiscal Year 2024 carries over the unaudited fund balances from the previous fiscal year to the current one, carries over,encumbrances or open Purchase Orders from the previous fiscal year to the current one, carries over capital project budgets from the previous fiscal year to the current one, and includes other adjustments based upon anticipated needs. 1. The unaudited fund balance carryover from the previous fiscal year is an increase of $13.6M. An increase occurs when the city ends the previous fiscal year with more resources than anticipated. This surplus can result from several factors, including higher-than-expected revenues, cost savings from completed projects, or unspent funds. The largest increase is the General Fund prior year fund balance at $10.3M offset by the PO encumbrances of $2.2M. An increase in the prior year fund balance will also increase the total budget. This larger than usual increase is due to the one-time transfer of $4,560,307 of the remaining half of the ARPA funds appropriation to cover allowable expenses. (See ARPA Reclassification on the previous table.) 2. The carryover of encumbrances or open POs is for commitments made for future expenditures. The Fiscal Year 2023 encumbrances totaling $7.1 M are being carried over to Fiscal Year 2024. These represent commitments from the previous year that were not fulfilled by September 30, 2023. The largest portion is in the Capital Projects Fund at $4.4M and in the General Fund at $2.2M. It is typical to have a large carryover of purchase orders in the Capital Projects Fund as these are multi-year projects in which the encumbrance carries forward until the project is completed. 3. Project carryovers occur when capital projects (such as infrastructure improvements, or construction) are not completed within the original fiscal year. In this case, capital projects totaling $14.2M were not finished during the prior fiscal year and are being allocated to specific projects in the budget amendment -$13.7M was budgeted as a lump -sum carryover amount in the Page 3 of 7 37