Andrew M. Thompson, CGFO Chief Financial Officer

Rhea Rivera, CGFM  Assistant Director, Financial Services
Kerri Anne Fisher, Purchasing Manager, Financial Services

John Farley, Budget Analyst, Financial Services

Issue Statement: Reallocation of appropriations is needed in Fiscal Year (FY) 2022 to provide funding for goods and services approved and appropriated in FY 21, but that will be expended in FY 22 (rollovers). In addition, adjustments to the FY 2022 Budget are recommended to reflect operational needs and changes that were not reflected in the budget at the time it was adopted in September 2021.  

Recommended Action:  City Commission adopt resolutions approving the proposed budget amendments.

Often there are purchases of various goods and services which were approved, appropriated, and encumbered in a given fiscal year that are not fully completed or received by the end of said fiscal year.  In these instances, the remaining balances of encumbrances are expended in the following year and the funds previously approved for these acquisitions are "rolled" into the following year's budget in what are termed "rollovers." 

In addition, the annual budget adopted in September 2021 for FY 2022  is appropriated on the departmental/division function level. The adopted budget establishes spending limits for every departmental functional area (personnel services, operating, capital, etc.). Appropriation adjustments are necessary as events occur that affect the budgeted amounts needed at the function level for each department to ensure sufficient funds are available.

A budget amendment adopted by the Commission is required to move these funds from the last fiscal year into the current fiscal year, in addition to transferring budgeted funds between departments and departmental functional areas.

The proposed budget amendments are presented in two categories.  The first are "rollovers", which reflect projects and purchase orders that cross multiple fiscal years (FY 2021 and FY 2022).  The second category can be broadly referred to as "midyear" adjustments.  These adjustments reflect changes to the City's budget that are requested to recognize new revenue, reflect expenditure cost center changes, align budgetary funding with organization funding, etc.

Rollovers - $9,769,455

The Purchasing Division has determined which overlapping / ongoing projects, along with the corresponding funding, must be moved ("rolled over") to the new budget in order to complete the projects.  The rollovers represent purchase orders issued and funded in the prior year for goods/services that departments have confirmed will be received during FY 2022. 

The majority of these purchase orders are in relation to design or construction of major capital projects awarded by the Commission in previous years, such as the Public Works Campus, Guisti Park, Stunson Nature Trail, Park Place, City Park Phase 1, Fire Stations 9 and 87, and the North Andrews Gardens Community Center. These are described in the attached Exhibit A, showing a total of $9,769,455. 

The specific details on the expenditures being rolled over to FY 22 are found in Exhibit C. These details include vendor name, purchase order number, general ledger account, and a brief description of the service or item procured. Outside contingency funding for capital projects are also identified by project, as is any other capital project funding being rolled into FY 2022. 

Midyear Adjustments - $752,974

Various amendments to the FY 22 Budget are also recommended at this time as shown in Exhibit B. The adjustments include:

• An amendment to recognize the increase in State Half Cent Sales Tax Revenue based on revised State estimates to provide funding for the anticipated increase in City fleet fuel costs;
• An amendment to to transfer funds between capital outlay and operating expenditures budget within Fire Rescue Division, for Pre-Fire Planning Software;

• An amendment to recognize the increase in Communications Service Tax Revenue based on revised State estimates to provide additional funding for mowing costs for the West Prospect Road Median;
• An amendment to move unexpended FY21 Paddle Club funds to FY 22;    

• An amendment to recognize an anticipated increase in Building contractual services, due to increased building activity, through the use of prior year fund balance;
• An amendment to provide funding for professional services for the creation of an Art Plan in the Planning and Zoning Division using available General Fund prior year fund balance;
• An amendment to provide funding for compensation and class study for Human Resources Division using available General Fund prior year fund balance;
• An amendment to provide funding for professional fees for the Engineering Division;
• An amendment to allocate the the ARPA-funded employee vaccine incentive among the appropriate departments and divisions;
• An amendment to provide funding for professional services  in the Financial Services  Department for the Downtown Properties RFP using available General Fund prior year fund balance;
• An amendment to provide additional funds for professional services relating to RFP assistance and evaluation services for the downtown properties using available General Fund prior year fund balance;
• An amendment to provide funding for design costs for renovations to the City building previously leased to Broward 2-1-1 using available CIP prior year fund balance;
• An amendment to recognize the use of prior year fund balance for additional Stunson Nature Trail project costs.

With the adoption of the recommended budget amendments, the citywide budget will increase from $129,676,440 to $140,198,869, a total change of $10,522,429 of which $9,769,455 is from roll-overs and the balance of $752,974 is from additional adjustments. 

The breakdown by fund is provided below:

The proposed budget amendments for adoption are presented as Exhibits A and B.  Additional details are found in Exhibit C, providing a listing of rollovers and adjustments including specific details on individual purchase orders being rolled over into FY 22.

City Commission adopt resolutions approving the proposed budget amendments.