Memo-06-13-2017-Item-10d

June 13, 2017

MEMO TO:           Mayor Barber and Board of Commissioners

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

SUBJECT:           Budget Amendment – General Fund

The Board of Commissioners is asked to approve the attached General Fund budget amendment in preparation for the close-out of FY 16-17 on June 30, and also to implement the planned early retirement of an outstanding Fire Engine debt that is a key strategy associated with the FY 17-18 budget presented for Board adoption on June 13. 

The General Fund budget amendment appropriates a total of $325,535 of additional unanticipated revenues and General Fund balance for various expenditures in different departments.  A total of $189,454 of this amount is associated with the strategic early retirement of an outstanding Fire Engine debt, and this portion of the budget amendment is supported by unanticipated additional sales tax revenues ($121,307) and the intentional appropriation of General Fund balance for this purpose ($68,147).  The early retirement of this outstanding Fire Engine debt “frees up” approximately $96,000 of budget capacity in the FY 17-18 budget.

The other items included in the attached General Fund budget amendment include various expenditures in different departments and cost centers, and collectively total $136,081.  In most cases, the expenditure of these funds was strategic and targeted for specific beneficial initiatives during the fiscal year.  In a few cases, unexpected expenditures impacted Town department budgets, and the attached budget amendment addresses these issues.  These additional expenditures are summarized below:

  • Legal – an additional $22,481 is appropriated for expenses associated with the Nies defense,

     

  • EMS – an additional $2,278 is appropriated to recognize FEMA reimbursements for EMS expenses during Hurricane Matthew,

     

  • Public Works – an additional $23,415 is appropriated for additional street paving expenses and small-area storm water improvements,

     

  • Solid Waste – an additional $26,371 is appropriated for higher-than-anticipated yard debris volumes and unexpected yard debris truck repairs,  

     

  • Parks and Recreation – an additional $32,000 is appropriated for various items, including additional beach and sound access walkway expenses, the recognition of donations associated with the new disc golf course, and additional part-time staffing expenses,

     

  • NonDepartmental – an additional $15,000 is included for additional emergency dredging in Bogue Inlet and the due diligence deposit for the purchase of the Surfside Realty Tract, and

     

  • Transfers to Capital Projects – an additional $28,075 is appropriated for additional expenses associated with the Bogue Inlet Drive Improvements project, including a wider paved road surface, additional pavement markings, and an unanticipated retaining wall; an additional $21,818 is appropriated for additional expenses associated with the Osprey Ridge Storm Water Pump project, including construction administration services and additional features to enhance the functionality and aesthetics of the new pump station.

These additional expenditures are offset by projected savings in the Administration budget ($11,000) and the Police Department budget ($24,357), and the remaining expenditures are completely funded by additional unanticipated revenues, including the following:

  • Development Permit Fees – an additional $16,483 is anticipated due to additional construction activity,

     

  • Other Fees – an additional $62,345 is anticipated from regional access parking fees, beach driving permit fees, golf cart registration fees, and hurricane re-entry fees,

     

  • FEMA Disaster Recovery – an additional $19,603 of FEMA reimbursements is recognized in the attached budget amendment, and covers various Hurricane Matthew expenses incurred in each department,

     

  • Donations – a total of $11,171 is formally recognized in the attached budget amendment, and covers various expenses in the Police, Fire, and Parks and Recreation Departments,

     

  • Recreation Sponsorships – a total of $4,500 was received for the new disc golf course at EI Woods Park,

     

  • Other Revenues – an additional $14,135 is anticipated, primarily from surplus property sales, insurance proceeds, and other miscellaneous sources, and

     

  • Transfer from CPO – the project account for the Senator Jean Preston Memorial Playground has a remaining balance of $7,844, and these funds are being returned to the General Fund so the project account can be closed; these funds originated from the General Fund and other general sources, and are not donations.

I recommend approval of the attached budget amendments.