Summary As part of its mid-year procedures, the Finance Department performs a mid-year budget adjustment after reviewing the previous year's audit results and current year actual receipts and expenditures for each fund as allowed by the City's Fiscal Policies. The purpose of this item is to adjust fund balances and appropriate unanticipated revenues the City has received since the adoption of the 2014-2015 Budget. At the same time, those expenditures related to those revenues will be appropriated in order to maintain a balanced budget. Also, as part of the mid-year process, certain revenue and expenditure budgets will be adjusted to better reflect actual receipts and expenditures, thus preventing negative variances between budget and year end actual totals. Florida Statutes allows for this type of budget adjustment in a public hearing.
Listed below is a breakdown by fund of the proposed adjustments:
1) The General Fund budget will be increased by $21,305. The Finance Department is recognizing $21,305 in unanticipated revenue associated with prior year refunds ($20,305) and donations ($1,000). The donation was to the Alachua Police Department (APD) to purchase new training uniforms. Accordingly, APD's budget will be increased by $1,000 to purchase the uniforms. The General Fund will increase its transfer out to the Debt Service Fund by $18,000 to cover issuance costs associated with the refinancing of the Section 108 Loan. This refinancing will save the City an estimated $175,000 in interest. The remaining $2,035 will be moved to the Special Expense Contingency to keep the budget in balance.
2) The Electric Utility Fund budget will be increased by $107,202. The Finance Department is recognizing $107,202 in unanticipated revenue associated with invoices for electric services ($97,725) and other miscellaneous revenue ($9,477). The funds from invoices ($97,725) were received from contractors and will be used to pay for equipment, materials, and labor associated with electrical services projects. The remaining funds ($9,477) will be moved to cover expenses associated with electric distribution system repairs.
3) The Debt Service Fund budget will be increased by $18,000. These funds will be transferred in from the General Fund and will go to pay for issuance costs associated with the Section 108 Loan refinancing.
4) The Donation Fund budget will be increased by $132,000. The Finance Department is recognizing $3,000 in unanticipated revenue associated with donations for team sponsorships. Also, a Recreation Tournament budget ($129,000) division is being established in the Donation Fund to account for revenue and expenses associated with the 2015 Softball Regional and World Series that will be held in July and August.
5) The Community Redevelopment Agency (CRA) Fund budget will be increased by $2,997. This amount will be transferred in from the Recreation Surtax Fund to pay for expenses related to the Swick House Renovation project.
6) The Recreation Surtax Fund budget will be increased by $2,997. The Finance Department is adjusting the fund balance in order to utilize the remaining Surtax funds. These funds will be transferred to the CRA Fund for expenses related to the Swick House Renovation project.
Pursuant to Chapter 166 of the Florida Statutes, a public hearing is necessary to amend the City budget for adjustments to budgeted beginning fund balances. The public hearing was advertised in accordance with Florida Statutes in the April 9, 2015 edition of the Alachua County Today newspaper. |