TO: Mayor and Members of City Council
THRU: Jeffrey Yates, Assistant City Manager
FROM: Kimberly Leonard, NCLGBO, NCLGFO, CPA, MPA
DATE: June 23, 2025
RE:
Title
Adoption of Budget Ordinance Amendment 2025-14 for the General Fund, Transit Fund, and Solid Waste Fund to ensure sufficient budget for year-end expenditures
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 5: Financially sound city providing exemplary city services.
Executive Summary:
As the City prepares to close FY2025 on June 30, several year-end “clean-up” actions are needed to ensure a smooth and timely closeout. Staff recommends that City Council adopt Budget Ordinance Amendment (BOA) 2025-14 to increase the FY2025 operating budgets for the General Fund by $1,989,816, the Solid Waste Fund by $2,700,000, and the Transit Fund by $88,395. These adjustments will ensure sufficient budget is available to cover year-end expenditure projections, address recently identified funding needs, and provide flexibility for any unexpected costs. The General Fund increase accounts for prior year obligations not paid in FY2024, unspent Parks and Recreation donations, and reimbursable public safety overtime. The Transit Fund increase is supported by a transfer from the General Fund, and the Solid Waste Fund increase is funded through available fund balance.
Background:
The revised General Fund Budget appropriation will be for expenditures that were budgeted in FY24 but are anticipated to be paid in FY25, for increase safety overtime, for unspent donations, and to ensure available for funding for the remainder of the year.
City Council is requested to adopt Budget Ordinance Amendment (BOA) 2025-14 to increase the FY2025 annual operating budget as follows:
• General Fund: $1,989,816
• Solid Waste Fund: $2,700,000
• Transit Fund: $88,395
These adjustments are needed to:
• Align the budget with year-end expenditure projections developed during the FY2025 budget process,
• Address additional funding needs recently identified, and
• Ensure sufficient budget flexibility for any unexpected expenditures before the close of the fiscal year.
General Fund Increase ($1,989,816):
• $1,329,090 for FY24 expenditures that were invoiced or encumbered in FY 2024:
o $697,643 for the operations portfolio
o $631,447 for the community investment portfolio
• $28,213 for unspent Parks and Recreation donations received in FY24
• $632,513 to recognize Police and Fire overtime expenses and offsetting revenues reimbursed by other government agencies
• Remaining adjustments reflect internal reallocations to align with realized efficiency savings
Transit Fund Increase ($88,395)
• Funded by a transfer from the General Fund to support year-end needs
Solid Waste Fund Increase ($2,700,000)
• Funded by an appropriation from the Solid Waste Fund Balance to fund equipment that was ordered in the prior year and increased maintenance costs.
This amendment ensures accurate year-end financial reporting and maintains compliance with budgetary requirements.
Issues/Analysis:
None.
Budget Impact:
This will reduce general fund fund balance by $1,989,816 to appropriate funds that were appropriated in FY24 for specific invoice/expenditures that were not paid in FY24, but are anticipated to be paid in FY25.
Options:
1.Adopt BOA 2025-14 to appropriate the funding needs as outlined above.
2.Do not approve BOA 2025-14 and provide further direction to the staff
Recommended Action:
Staff recommends that Council move to adopt Budget Ordinance Amendment 2025-14 as presented.
Attachments:
Budget Ordinance Amendment 2025-14
Designations and Donations Rolled Forward