Subject:
Title
8:00 p.m. - 8:30 p.m. Public Hearing on 2024-25 Budget Supplemental Appropriations (Purchase Orders Rolled Forward and 2024 Surplus Carried Forward)
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
Council Meeting Aug. 26, 2024, set public hearing
Work Session Sept. 16, 2024, discussion
EXPLANATION AND SUMMARY:
This item contains supplemental adjustments to the 2024-25 General Fund budget for two reasons:
1. Purchase Order Roll Forwards - previously approved purchase orders opened and expected to be completed in FY 2023-24. Due to continued supply chain issues and transformation to energy-efficient vehicles in the automobile industry, almost $2 million of this request represents vehicles ordered but not delivered from fiscal years 2022-23 and 2023-24. The remainder, totaling $120k are from various projects started in FY 2023-24 and not completed and paid for during the fiscal year.
2. Budgeted Surplus Carried Forward - These are items identified by department heads that have come up since the 2024-25 budget was adopted and are necessary for the departments to complete their objectives in the current fiscal year, because the Town ended fiscal year 2023-24 with a surplus in the General Fund. Council discussed these items in a work session on Sept. 16, 2024, and the consensus is attached.
Carry-forward money is available because the Town had a surplus in FY 2023-24 of almost $800,000. The surplus is due to a combination of several General Fund revenues exceeding budget plus salary savings due to position vacancies during the year, and several large expenditure lines, most notably fuel and landfill costs coming in under budget.
It is the Town’s practice to put half of any fiscal year surplus is the Unreserved Fund Balance (Rainy Day Fund) up to an amount that represents at least 18% of the subsequent year’s budget (Rainy Day percent). Any amount of the half over 18% is put in a revenue stabilization fund to address an economic downturn in future years. The remainder can be spent on items are determined by the departments and prioritized and approved by the Budget Committee, and then Council.
For 2024-24, the amount of supplemental appropriations requested are:
Approved Vehicle PO’s $1,996,080
Approved PO’s Rolled Forward $ 120,090
2023-24 Budget Surplus Carry Fwd $ 455,000
Total $2,571,170
Since the total supplemental budget appropriation is in excess of 1% of the Town’s 2024-25 General Fund budget, a public hearing to allow public comment is required per the Code of Virginia, section 15-2-2507.
Departmental Recommendation: Recommend hold a public hearing and adoption of the supplemental appropriations as submitted.
Finance Recommendation: Recommend hold a public hearing and adoption of the supplemental appropriations as submitted.
Purchasing Recommendation: Recommend Approval.
Town Attorney Recommendation: The Town Attorney recommends setting a public hearing to receive public comment on the proposed FY 2024-25 General Fund budget amendment.
Town Manager's Recommendation: I recommend the Town Council adopt the amendment to the Fiscal Year 2024-2025 General Fund budget, as presented and direct the Town Clerk to advertise a Notice of Adoption.
Cost and Financing: $2,571,170
Account Number: various
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA. General Fund Budget
Decision Needed by This date: Oct. 7, 2024
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to close the public hearing"
And
“I further move to adopt the $2,571,170 amendment to the FY 2024-25 General Fund budget as presented and direct the Town Clerk to advertise a Notice of Adoption.”
Or
Other action deemed necessary by Council.