Columbus, Georgia

Agenda Item#_________



Columbus Consolidated Government

Council Meeting



November 15, 2005





Agenda Report#______________





TO: Mayor And Councilors



SUBJECT: FY06 BUDGET AMENDMENT



INITIATED BY: Finance Department











Recommendation: Approve an Ordinance amending the FY06 adopted budget by

reappropriating funds for activities continued from FY05 and adjustments made

for other purposes.



Background: The Council has adopted the city?s FY06 Annual Operating Budget

and Nonoperating Budget in separate actions. Both budgets appropriate funding

for planned operations. Pursuant to state and local laws, these budgets are

for a single fiscal year, and unspent appropriations lapse at the end of the

fiscal year.



At the end of each fiscal year, many activities are in process. Orders for

goods and services have been placed, but either the order has not yet been

filled or the vendor has not yet sent an invoice for payment. In such

instances, funding for the payment has been encumbered, but the budget

authority to make the payment terminates at year-end. Additionally, some major

purchases or projects may be in a planning stage at the end of the fiscal year;

these transactions do represent an outstanding encumbrance at year-end and

funding for them also must be appropriated.



In order to complete this work in process at the end of the fiscal year, the

funding to support it needs to be reappropriated. In order to maintain an

accurate record of authorized spending levels, the carryovers are being

submitted in the form of a budget amendment for Council?s consideration. In the

non-operating budgets, adjustments are made for grant and other activities.



Analysis: The total funding to be reappropriated for operating and

non-operating funds is $7,828,386 consisting of $3,096,179, of outstanding

encumbrances as of June 30, 2005, and $4,732,207 of funding for works in

progress, grants and on-going projects. These projects include indigent

medical expenses, health actuarial study, Junior Marshal program, Fire

Department burn building maintenance, on-going real estate scanning project,

and other operational expenses and equipment. The funding source for these

appropriations is fund balance, contingency and the amount of Insurance

Premiums collected over the amount budgeted. The General Fund budget amendment

for work in process and new requests did not exceed the additional revenue

identified of $710,071. The total operating funds budget went from an adopted

budget of $184,877,392 to $187,639,669, a 1.49% increase.



The attached tables identify the amounts to be reappropriated in each

accounting fund by department and according to the cause (that is, outstanding

encumbrance, or work in process).



Financial Considerations: This action will increase FY06 authorized spending

levels by reappropriating funds for certain activities that were originally

budgeted but not completed in FY05. Because the authorized prior year spending

did not occur, the FY05 ending fund balance includes funds for activities that

were originally budgeted in FY05, but not completed by year-end. Fund

balance, contingency, the amount of Insurance Premiums collected over the

amount budgeted, and other miscellaneous revenues will be used to bridge the

difference between revenues and expenditures in FY06.



Recommendations / Actions: Approve the attached Ordinance amending the FY06

adopted budgets by reappropriating funds for activities continued from FY05 and

adjustments made for other purposes.