Ordinance 2020-09, if approved, will amend the current FY 2019-2020 Appropriations (Budget) Ordinance to formally authorize recommended adjustments to expenditures and operating transfers for the General Fund, Post Employment Benefits Fund,  Equipment Replacement Fund, Capital Projects Fund, Facilities Maintenance Fund, Drug Fund, and the Insurance Fund.

A budget amendment is legally required when the total actual expenditures for a fund are expected to exceed the original total appropriation for the fund. The reasons for these amendments are typically identified by staff during the course of the fiscal year and then the amendments are formally considered by the Board at the end of the fiscal year to ensure legal compliance. Often these amendments are needed to provide current year funding for capital projects and equipment that will be initiated or purchased in the new fiscal year beginning July 1. The amendment process requires staff to identify and certify that additional revenue sources in the current fiscal year are available to fund the new expenditures.

The recommended amendments are summarized below:

General Fund (110)

Additional revenues of $4,322,360 reflect positive revenue collections in the current year over original budgeted estimates.

Proposed expenditure amendments are as follows:

1. A special FY 2020 year-end appropriation transfer of $3,740,000 from the General Fund to the Capital Projects Fund funded through projected excess revenue collections in the current fiscal year to pay for certain proposed FY 2021 and beyond capital projects and equipment. (See attachment A for projects list.) 
2. A special FY 2020 year-end appropriation transfer of $2,600,000 from the General Fund unassigned fund balance to the Capital Projects Fund for the first installment to purchase Windy Hill Park.
3. A special FY 2020 year-end transfer of $405,000 from the General Fund to the Equipment Replacement Fund for the FY 2021 purchase of equipment.  See attached project and equipment list.
4. A special FY 2020 year-end transfer of $45,000 from the General Fund to the Facilities Maintenance Fund for maintenance for Ravenswood Mansion.
5. An appropriation increase of $12,940 to the Fire and Rescue activity for incidentals and overtime paid to City of Brentwood firefighters that were deployed to South Carolina for mutual aid emergency service operations and support for Hurricane Dorian.  Funding is provided by FEMA reimbursement funds equaling $12,940.
6. An appropriation increase in the Fire and Rescue activity of $33,020 for accrued terminal leave payments in FY 2020 for the retirement of one 30+ year employee. There will be a companion transfer from the Post Employment Benefits Fund to cover this cost.
7. An appropriation increase in the Fire and Rescue activity of $14,400 to cover State Pay Supplemental increase with funding provided by extra revenue received from State of Tennessee.
8. An appropriation increase in the Fire and Rescue activity of $35,000 to cover repairs to Tower 51.
9. An appropriation increase in the Engineering activity of $22,000 for accrued terminal leave payments for FY 2020 for the retirement of one 30+ year employee.  There will be a companion transfer from the Post Employment Benefits Fund to cover this cost. 
10. An appropriation increase in the Storm Drainage activity to cover the cost of repairs to aging corrugated metal storm drainage pipes.

The proposed total General Fund appropriation increase of $4,322,360 from current year revenues and $2.6 million from the fund balance transfer will leave a minimum projected General Fund unassigned fund balance as of June 30, 2020 of $39.4 million. The fund balance will exceed the stated budget policy objective of maintaining a minimum of 40% in reserves for future needs and emergencies.  Please note it is likely that the final unassigned fund balance will be higher because the exact amount will not be known until August 1, 2020 when the Hall Income Tax proceeds for FY 2020 are received from the State of Tennessee.

Post Employment Benefits Fund (127)

Increasing the appropriation for this fund by $55,020 for the transfer to the General Fund for reimbursement of accrued terminal leave payments for the Fire and Rescue ($33,020) and Engineering ($22,000) activities in FY 2020 as referenced above.

Equipment Replacement Fund (310)

Additional Revenue of $405,000 reflects the special year-end appropriation transfer from the General Fund as referenced above.

Capital Projects Fund (311)

Additional revenue of $6,340,000 reflects the special year-end appropriation transfer from the General Fund as referenced above.

Increasing the appropriation of this fund by $2,600,000 for the first installment to purchase Windy Hill Park. 

Facilities Maintenance Fund (312)

Additional revenue of $45,000 reflects the special year-end appropriation transfer from the General Fund to pay for the maintenance to Ravenswood Mansion.

Increasing the appropriation of the fund by $250,000 to pay for the roof repairs at the Library.

Drug Fund (126)

Increasing the appropriation of this fund by $22,000 for the purchase of a new drug dog including onboarding costs.
 
Insurance Fund (320)

Additional revenue of $135,000 reflects stop loss (reinsurance) amounts received for payments of individual medical claims above the stop loss base amount.  Note that additional stop loss payments may be received for claims incurred prior to June 30, 2020.

Increasing the appropriation of this fund by the same $135,000 for incremental medical claims that could occur before June 30, 2020.

Summary
The recommended budget appropriations amendments are primarily bookkeeping in nature to meet the legal requirements for compliance with annual budget appropriations. Whenever possible, budget amendments for the current fiscal year should be carried out before the end of the fiscal year and prior to the beginning of the independent audit for FY 2020.

Should the City Commission have any questions concerning this information, please contact the Finance Director.