Ordinance 2021-14, if approved, will amend the current FY 2020-2021 Appropriations (Budget) Ordinance to formally authorize recommended adjustments to expenditures and operating transfers for the General Fund, Post-Employment Benefits Fund, Debt Service Fund, Equipment Replacement Fund, Capital Projects Fund, Facilities Maintenance Fund, the Insurance Fund, Municipal Center Fund, Water and Sewer Fund, and Emergency Communications District 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 fiscal year and then the amendments are formally considered by the City Commission 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 $7,049,235 reflect positive revenue collections in the current year over original budgeted estimates.
Proposed expenditure amendments are as follows:
- A special FY 2021 year-end appropriation transfer of $4,055,000 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 2022 and beyond capital projects and equipment. (See attachment A for projects list.)
- A special FY 2021 year-end transfer of $770,000 from the General Fund to the Equipment Replacement Fund for the FY 2021 and FY 2022 purchases of equipment. (See attachment A equipment list.)
- A special FY 2021 year-end transfer of $655,000 from the General Fund to the Facilities Maintenance Fund for FY 2021 roof replacement at Library and Safety Center East as well extraordinary repairs to Fire Station 2 and Safety Center East. This year-end transfer also includes funds add to the Facilities Maintenance Fund balance for future facility maintenance needs.
- A fund balance transfer of $2,711,600 from the General Fund to the Debt Service Fund for the prepayment of the two (2) Capital Outlay Notes.
- An appropriation increase in the City Manager activity of $8,445 for mid-year 4% salary increase.
- An appropriation increase in the Finance activity of $24,565 for mid-year 4% salary increase.
- An appropriation increase in the City Recorder activity of $3,225 for mid-year 4% salary increase.
- An appropriation increase in the Legal activity of $6,090 for mid-year 4% salary increase.
- An appropriation increase in the Information and Technology activity of $26,090 for mid-year 4% salary increase.
- An appropriation increase in the GIS activity of $9,700 for mid-year 4% salary increase.
- An appropriation increase in the Human Resources activity of $11,310 for mid-year 4% salary increase.
- An appropriation increase in the Human Resources activity of $24,300 for accrued terminal leave payment in FY 2021 for one 35+ year employee. There will be a companion transfer from the Post-Employment Benefits Fund to the General Fund to cover this cost.
- An appropriation increase in the Community Relations activity of $5,475 for mid-year 4% salary increase.
- An appropriation increase in the Planning activity of $11,805 for mid-year 4% salary increase.
- An appropriation increase in the Codes activity of $23,985 for mid-year 4% salary increase.
- An appropriation increase in the Police activity of $205,650 for mid-year 4% salary increase.
- An appropriation increase in the Fire and Rescue activity of $188,750 for mid-year 4% salary increase.
- An appropriation increase of $10,220 to the Fire and Rescue activity for incidentals and overtime paid to City of Brentwood firefighters that were deployed to South Carolina and Florida for mutual aid emergency service operations and support for Hurricane Sally. Funding is provided by FEMA equaling $10,220.
- An appropriation increase in the Fire and Rescue activity of $82,080 for accrued terminal leave payment in FY 2021 for the retirement of one 30+ year employee and one 20+ year employee. There will be a companion transfer from the Post-Employment Benefits Fund to the General Fund to cover this cost.
- An appropriation increase in the Fire and Rescue activity of $45,650 to cover repairs to Engine 52.
- An appropriation increase in the Public Works activity of $46,005 for 4% mid-year salary increase.
- An appropriation increase in the Public Works activity of $5,035 for accrued terminal leave payment for FY 2021 for the retirement of one 15+ year employee. There will be a companion transfer from the Post-Employment Benefits Fund to the General Fund to cover this cost.
- An appropriation increase in the Traffic Signalization activity of $3,030 for 4% mid-year salary increase.
- An appropriation increase in the Service Center activity of $3,665 for 4% mid-year salary increase.
- An appropriation increase in the Engineering activity of $8,200 for 4% mid-year salary increase.
- An appropriation increase in the Engineering activity of $60,975 for accrued terminal leave payments for FY 2021 for the retirement of one 30+ year and one 15+ year employee. There will be a companion transfer from the Post-Employment Benefits Fund to the General Fund to cover this cost.
- An appropriation increase in the Storm Drainage activity of $58,300 for the cost of repairs to aging corrugated metal storm drainage pipes and the stormwater regulation update.
- An appropriation increase in the Parks and Recreation activity of $42,080 for mid-year 4% salary increase.
- An appropriation increase in the Library activity of $52,010 for mid-year 4% salary increase.
The proposed total General Fund appropriation increase of $9,158,240 from current year revenues and fund balance will leave a minimum projected General Fund unassigned fund balance as of June 30, 2021 of $38.95 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, 2021 when the Hall Income Tax proceeds for FY 2021 are received from the State of Tennessee.
Post-Employment Benefits Fund (127)
Increasing the appropriation for this fund by $172,390 for the transfer to the General Fund for reimbursement of accrued terminal leave payments for the Human Resources ($24,300), Fire and Rescue ($82,080), Public Works ($5,035), and Engineering ($60,975) activities in FY 2021 as referenced above.
Debt Service Fund (211)
Additional Revenue of $2,711,600 reflects the year-end fund balance transfer from the General Fund as referenced above.
Increasing the appropriation of this fund by $2,711,600 to cover the net costs of prepayment of the 2018A and 2018B Capital Outlay Notes.
Equipment Replacement Fund (310)
Additional Revenue of $770,000 reflects the special year-end appropriation transfer from the General Fund as referenced above.
Increasing the appropriation of this fund by $330,000 to cover the unfunded portion of two (2) Grapple Trucks and a Street Sweeper.
Capital Projects Fund (311)
Additional revenue of $4,055,000 reflects the special year-end appropriation transfer from the General Fund as referenced above.
Facilities Maintenance Fund (312)
Additional revenue of $655,000 reflects the special year-end appropriation transfer from the General Fund as referenced above.
Increasing the appropriation of this fund by $386,790 to pay for the roof replacement at the Library and Safety Center East, as well as extraordinary repairs to Fire Station 2 and Safety Center East.
Insurance Fund (320)
Additional revenue of $415,000 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, 2021.
Increasing the appropriation of this fund by the same $415,000 for incremental medical claims that could occur before June 30, 2021.
Municipal Center Fund (434)
Increasing the appropriation of this fund by $37,000 to pay for mold remediation in the leased EMS space and concrete repairs around the underground fuel tanks.
Water and Sewer Fund (412)
An appropriation increase in this fund of $65,115 for mid-year 4% salary increase.
Emergency Communications District Fund (450)
An appropriation increase in this fund of $27,290 for mid-year 4% salary increase.
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 2021.
Should the City Commission have any questions concerning this information, please contact the Finance Director. |