November 19, 2024
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Continuing Appropriations FY 2024-25
RECOMMENDATION:
Staff recommends that the City Council approve a continuing appropriation decrease of $674,857 from originally designated fund balances for construction-in-progress projects encumbered as of June 30, 2024, into the Fiscal Year (FY) 2024-25 Budget.
SUMMARY:
The requested budget action adjusts the FY 2024-25 Budget for continuing appropriations on capital improvement projects that were in progress in the prior fiscal year, but not yet complete as of June 30, 2024.
BACKGROUND:
The original budget generally requests appropriation of funds for new expenditures and capital projects, or for construction-in-progress projects requiring additional funding. It is generally assumed that budgeted expenditures are completed in the year the budget is adopted. However, some expenditures, particularly capital projects, may not be fully completed within the same budget cycle, requiring carryover into subsequent budget years.
Performing continuing appropriations is an annual function designed to cover expenses from prior fiscal year projects that flow into the following budget cycle.
DISCUSSION:
Resolution No. 4032, adopting the Fiscal Year 2024-25 budget, authorizes in Section 7 the carryover of unexpended, unencumbered Capital Project Funds, estimated at $33,281,312.
The actual carryover amount for City Capital Projects from June 30, 2024, is $32,606,455. The total budget adjustment to City Funds is a decrease of $674,857, which is the difference between the initial budget estimates and the actual carryover amounts.
FISCAL IMPACT:
An estimate of the proposed continuing appropriations was assumed in establishing the adopted FY 2024-25 budget. Total budget adjustment decrease to City Funds is $674,857.
ATTACHMENTS:
Continuing Appropriations
Resolution No. 4032 - Budget Adoption