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HomeMy WebLinkAboutVIII-13 Approve Budget Carryover 2021 to 2022 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Eitemiller, Finance Manager Date: February 22, 2022 Item: Budget Carryovers – 2021 to 2022 Council Action Requested: Staff requests Council approval to carryover expense budgets from the 2021 budget to the 2022 budget for unspent donations and select capital and equipment purchases. Background Information: A balanced budget is adopted before the beginning of a fiscal year. Current practice is to allow the budget amount for capital items that are not purchased in a budget year due to extenuating circumstances to be moved to the next fiscal year. A capital item is an individual purchase greater than $10,000 with a useful life greater than one year. The requests include several items that were budgeted in 2021, but were not completed due to supply chain delays or scheduling/timing. The first request is from the Fire department. This $51,670 request is needed to complete the Fire Department Study. This needs to be carried forward into 2022 due to scheduling conflicts and delays. The next item staff is requesting relates to the City’s Finance system. Due to the consultant’s 2021-22 schedule, $16,000 of the $30,000 allocated in 2021 to begin work on researching software options needs to be carried forward. In 2021, Public Works had budgeted $150,000 for the Highway 61 corridor study. The cost estimate has decreased, reducing the amount needed to complete this work in 2022 to $100,000. VIII-13 Fire has two other items that were not completed in 2021. The first is for uniforms and turnout gear that was ordered in the 4th quarter of 2021 but won’t be received until March or April 2022. There is a balance of $17,148 that the department needs carried forward. The other Fire request is for the remaining $16,052 of spending authority to complete the Fire station alerting system project that was begun in 2021. We are requesting to roll forward a total balance of $90,000 budgeted in HEDRA during 2021. This funding will pay for Downtown environmental cleanup. The remaining two items are from the vehicle and equipment fund. The fire truck and a Chevy Tahoe pickup, also for the Fire Department, which were budgeted in 2021. Like other items mentioned, these have not been completed due to supply chain delays. The department requests approval to carry forward $11,826 for the Tahoe and $29,813 for the fire truck. Donations: Donations are accepted by the City Council and designated for a special purpose. Donations received by departments can be carried to the next fiscal year for two years before reverting to the fund balance if not spent. The donation amounts requested on the schedule are consistent with prior practice. Financial Impact: All items are currently in the 2021 budget and all funds requested for carryforward remain unspent. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: Listing of budget carryover requests VIII-13 * Donations have historically remained in a department's expense budget for two consecutive years before reverting to fund balance. Amounts presented here reflect only those funds eligible for roll‐forward to the 2022 budget. VIII-13