Tara Lewis, Financial Services Manager

Jennifer Buntjer, Financial Services Officer

Attached is an ordinance amending the 2018 Budget to provide appropriations for the encumbrances outstanding at the close of the 2017 Fiscal year and to provide appropriations for projects or programs (including associated revenues) that were uncertain and therefore not included at the time of the 2018 Budget adoption.

Encumbrances listed on the attached report represent orders for goods or services included in the 2017 Budget that were authorized, but that were not received or performed by the end of the year. As a result, appropriations that apply to these 2017 encumbrances from the 2017 Budget need to be carried forward to accommodate payment for these goods and services in 2018. This action will amend the 2018 Budget for these expenditures. This appropriation for prior year encumbrances is an annual budgeting requirement.

Projects and programs that were not 2017 encumbrances that are included in this requested Budget amendment are as follows:

• Council accepted a SAFER grant on January 16, 2018 for partial salary cost reimbursement of 3 firefighters. Total expenditure is $273,306 and is offset by grant revenue of $257,856 for a net use of General Fund Balance of $15,450.
• Acquisition of Fire apparatus originally budgeted in 2015 with final delivery and payment in 2017 used interfund financing to provide cash resources as needed to complete the purchase agreements. The external financing, expected to occur this summer, will pay off the interfund loan to the General Fund and restore the Fire Capital fund balance. Amount to be financed (to restore the fund balance used for the acquisition) – $1,500,000
• The City’s contracted share of the Aquatic Center project and related financing, $8,000,000 total expenditure and loan/bond proceeds revenue. Net impact to Fund Balance is zero.

Neighborhood Development (ONDS) typically has a large encumbrance to be brought forward because the annual budget is set based on “new” federal Community Development Block Grant (CDBG) and HOME Grant awards. Amounts obligated, but not yet spent at the end of each year are carried forward into the next year through an encumbrance. $1,648,931 of expenditures, fully offset by grant revenue is requested for appropriation in the attached schedule.