The accompanying ordinance, upon passage, will authorize appropriations (expenditures) for the City of Brentwood for Fiscal Year 2017-2018.

The FY 2018 proposed budget was submitted to the City Commission on May 3, 2017 and was subject to detailed review at the budget work session held on May 11, 2017. As discussed at the meeting, the proposed General Fund budget has been adjusted in the appropriations ordinance to reallocate new funding proposals originally budgeted in the Insurance and Other Benefits activity to the various General Fund activities with personal services expenditures. This includes the proposed merit pay adjustment of 4% plus associated benefit costs.  A revised FY 2018 line item budget incorporating the reallocation of these expenditures is provided as an attachment to this ordinance.

Please reference the following pages in the FY 2018 proposed operating budget document in your review of the proposed adjustments which are summarized below:

General Fund

Insurance and Other Benefits Activity (page 172 in the draft budget document), funding for the following line items has been reallocated throughout the budget to the appropriate activities with personnel: 
 

Supporting information for the above proposals is provided in the City Manager’s transmittal letter in the budget document. With this reallocation, the revised Insurance and Other Benefits activity budget will decrease from $1,565,925 to $794,730; however, the total FY 2018 General Fund budget will remain the same.  Projected revenues for next fiscal year total $37,307,600, while appropriated expenditures will be $37,265,810, leaving a projected year end surplus of $41,790.

In addition, as outlined in the City Manager’s budget letter and discussed at the May 11 work session, funding for certain proposed projects and equipment purchases in the FY 2018 Capital Improvements Program will require a FY 2017 special year-end transfer totaling $3,195,000 from the General Fund to the Capital Projects Fund ($3,150,000) and Equipment Replacement Fund ($45,000) funded through current year revenue collections.  Another special FY 2017 year-end appropriation transfer of $2,205,000 from the General Fund unassigned fund balance to Capital Projects Fund is planned to provide additional funding for various unspecified projects.  When the year-end transfers are taken into account, the minimum unassigned fund balance in the General Fund as of June 30, 2017 is estimated at $32,047,050.

The proposed FY 2017 year-end special appropriation ordinance, as well as other "clean up" budget amendments, will be presented to the City Commission for formal consideration on first reading at the June 13, 2017 meeting.

Please note that the allocation of $225,000 to eligible public schools with Brentwood resident students, the allocation of $87,000 in the Parks and Recreation Department budget to specific recreation service providers in the community, funding for the Williamson County Chamber of Commerce and any pay adjustment for the City Manager must be determined by the City Commission and approved by motion prior to approval of the FY 2018 Appropriations Ordinance on second and final reading at the June 26, 2017 Commission meeting. 

Water and Sewer Fund (page 298 in budget document) - The following line item for the proposed merit pay adjustment of 4% plus associated benefit cost has been redistributed to the appropriate salary and benefit line items in the budget.
 

Emergency Communications District (page 315 in budget document) - The following line item for the proposed merit pay adjustment of 4% plus associated benefit cost has been redistributed to the appropriate salary and benefit line items in the budget.
 

If the appropriations ordinance is approved on first reading, final reading of this ordinance will not occur until June 26, 2017 Board meeting. However, a public hearing for this ordinance will be scheduled for the June 13, 2017 meeting.

Please contact the Finance Director or City Manager if you have any questions or need additional information.