Memo-06-12-2018-Item-11e

June 12, 2018

MEMO TO:           Mayor Barber and Board of Commissioners

FROM:                  Frank A. Rush, Jr., Town Manager

SUBJECT:           Budget Amendments – General Fund, Special Drug Fund

The Board of Commissioners is asked to approve the attached General Fund and Special Drug Fund budget amendments in preparation for the close-out of FY 17-18 on June 30.  The General Fund budget amendment appropriates an additional $78,707 of unanticipated revenues for expenditures in various Town departments.  The Special Drug Fund budget amendment appropriates an additional $255 for minor Police Department expenditures.      

General Fund

The attached General Fund budget amendment includes various expenditures in different departments and cost centers, and collectively appropriates an additional $78,707.  In some cases, the expenditure of these funds was strategic and targeted for specific beneficial initiatives during the fiscal year, and/or to improve the Town’s budget position for FY 18-19.  In other cases, there were unexpected expenditures that impacted Town department budgets, and the attached budget amendment addresses these issues.  These additional expenditures are summarized below:

  • Fire - an additional $5,300 is included for the purchase of a motorized water rescue board that EIFD will be testing this summer as a potential replacement for EIFD’s jet skis used for water rescues; this item is primarily funded by donations,
  • EMS – the attached budget amendment simply reduces the EMS budget by $11,000 and transfers to these funds to the NonDepartmental cost center where organization-wide insurance expenses (now including EMS insurance expenses) are accounted for,
  • Public Works – an additional $35,218 is appropriated for various items, including decorative lighting around the new NC 58 roundabout, replacement HVAC equipment for the Police Station, Olde Cove Road golf cart path expenses, and higher than anticipated storm water management expenses,  
  • Solid Waste – an additional $3,000 is appropriated for higher than anticipated gasoline and vehicle repair expenses,
  • Parks and Recreation – an additional $35,189 is appropriated for various items, including replacement HVAC equipment at the Community Center, the construction of Lee Avenue sound access improvements, Western Ocean Regional Access stage improvements, new vegetation in the Coast Guard Road right of way after recent electric line work, a new Welcome to EI sign in eastern Emerald Isle, and disc golf course improvements,
  • NonDepartmental – a total of $11,000 has been transferred from the EMS budget to this cost center for EMS insurance expenses. 

These additional expenditures are funded by additional unanticipated revenues in the General Fund, including the following:

  • Other Fees – an additional $10,625 of golf cart registration fees and hurricane re-entry fees is appropriated, and is internally linked to the Olde Cove Road golf cart path project,
  • Building Permits – an additional $10,000 of building permit fees associated with the Publix project is appropriated, and is internally linked to the new decorative lighting around the roundabout,  
  • Insurance Proceeds – a total of $7,720 of insurance proceeds is appropriated for expenses in the Police Department and Fire Department,
  • Donations – a total of $15,029 of donations is appropriated, primarily for expenses in the Fire Department (motorized water rescue board) and the Parks and Recreation Department (disc golf course improvements, and others),
  • Parks and Recreation Fees – a total of $12,332 of additional after school program fees, class fees, and Community Center rental fees are appropriated for the Parks and Recreation Department expenses described earlier,  
  • Interest Earnings – with interest rates steadily rising, the Town’s interest earnings are gradually increasing, and these additional revenues ($12,500) are appropriated for the various items described earlier,
  • Other Revenues – an additional $10,501 of surplus item sale proceeds is appropriated for the various items described earlier.

Special Drug Fund

The Town occasionally receives small amounts of controlled substance tax revenues (associated with drug cases), and the attached budget amendment formally recognizes $124 in the FY 17-18 budget.  These funds are restricted for Police Department expenditures, and along with $131 of fund balance, were used for minor Police expenditures during the fiscal year.

I recommend approval of the attached budget amendments.