AGENDA DATE: June 3, 2015
TITLE:
FY 16 Resolution of Appropriations
BODY
SUBJECT/PROPOSAL/REQUEST: Approval of the Resolution of Appropriations for the Albemarle County Operating and Capital Budgets for FY 16
ITEM TYPE: Action
STAFF CONTACT(S): Foley, Letteri, Davis, and Allshouse, L.
PRESENTER (S): Lori Allshouse
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: The County's FY 16 Operating and Capital Budgets totaling $374,357,538 were approved by the Board of Supervisors on April 14, 2015 and adopted by the Board on May 6, 2015.
On April 23, 2015, the School Board adopted the School Fund and the School Self-Sustaining Fund budgets.
To provide the authority from the Board to spend these funds, an Annual Resolution of Appropriations for the fiscal year ending on June 30, 2016 is required. In addition, the Board's approval of a Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing is required to provide the County with the authority to use bond proceeds to reimburse capital program expenditures for the specified project.
STRATEGIC PLAN: Mission: To enhance the well-being and quality of life for all citizens through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: The Annual Resolution of Appropriations is a comprehensive resolution that appropriates the total County budget, including both general government and school operating and capital funds, School Self-Sustaining Funds and Other General Government Fund appropriations in a single resolution. This resolution is included as Attachment A.
The attached FY 16 Annual Resolution of Appropriations includes an amendment as discussed with the Board of Supervisors on April 14 to accommodate the School Board's April 23 adoption of its budget for the School Fund that was for $389,906 more than the School Fund Budget originally approved by the Board of Supervisors. This adjustment supports a full year of salary increases for teachers. This amendment would not exceed one percent of the FY 16 total budgeted expenditures and therefore does not require a public hearing.
The FY 16 Annual Resolution of Appropriations continues to provide the authority for the County Executive to administratively approve budget transfers of unencumbered funds for up to $50,000.00 per fund in the fiscal year from one classification, department or project to another within the same general government fund.
In addition, to increase administrative efficiency and effectiveness throughout the year while continuing to provide transparency in budgeting, the FY 16 Resolution includes proposed language that, if approved by the Board, provides the authority for the County Executive to also transfer funding from specific Board approved FY 16 reserve accounts to the appropriate budget line-items as required to ensure proper accounting of these expenditures. These specific Board approved reserve accounts would be limited to 1) the funding approved in FY 16 for the General Government's Training Pool, 2) the Innovation Fund, 3) the Salary Reserves for Reclassifications and Pay-for-Performance account, and 4) the Fuel Contingency Reserve. In addition, there is proposed language that would authorize the County Executive to allocate the County-wide salary lapse budget between department budgets to appropriately reflect where salary lapse actually occurs. As currently provided for all of the County Executive administratively approved budget transfers, any such transfer or distribution will be reported to the Board of Supervisors as part of the County's quarterly financial reports.
The Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing to allow the County to use up to $43,389,518 in bond proceeds to reimburse capital program expenditures in the FY 16 Capital Budget is also included as Attachment B.
RECOMMENDATION:
Recommendation
Staff recommends approval of the Annual Resolution of Appropriations for FY 16 (Attachment A) that allocates a total of $374,747,444 to various General Government and School Division operating, capital improvement, and debt service accounts for expenditure in FY 16 and amends existing policy regarding the transfer of reserve account funding as outlined above.
This appropriation totals $374,747,444 and is made up of the following major funds:
General Fund $249,196,163
General Fund School Reserve Fund 1,623,967
School Fund 167,067,883
School Special Revenue Funds 16,192,692
Other General Government Funds 37,738,170
Capital Projects 56,094,979
Debt Service 18,746,051
SUBTOTAL $546,659,905
Less Inter-fund Transfers ($171,912,461)
TOTAL (new appropriations) $374,747,444
Additionally, in accordance with the funding plan presented in the Capital Budget, staff recommends approval of the attached Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing (Attachment B) to allow the County to use up to $43,389,518 in bond proceeds to reimburse capital program expenditures.
ATTACHMENTS:
Attachment A - Annual Resolution of Appropriations
Attachment B - Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing