Fiscal Note
The adopted 2009 Operating Budget includes $400,000 for prior-year encumbrances. Since actual encumbrances at the end of 2008 totaled $514,378, the difference of $114,378 must be appropriated from the Contingent Reserve. Following adoption of this resolution, the available Contingent Reserve balance is expected to total $1,019,102. There is no impact on the tax levy or State Expenditure Restraint Program eligibility limits.
Title
Allocating $400,000 appropriated in the 2009 Operating Budget for prior-year encumbrances and appropriating an additional $114,378 from Contingent Reserve to fund actual 2008 year-end encumbrances in various departmental accounts.
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PREAMBLE
In governmental accounting terminology, encumbrances are outstanding purchase orders and other contractual commitments for expenditures that have been incurred but not yet paid. Any encumbrances that remain open at the end of the budget year must be paid and charged to expense in the subsequent year. Governmental accounting rules require that such expenses be charged against the adopted budget when prior-year encumbrances are paid.
The City of Madison included a $400,000 appropriation for prior-year encumbrances in the miscellaneous section of the adopted 2009 budget. The difference between the total of this budgeted amount and the total actual carry forward of encumbrances must be appropriated from the Contingent Reserve.
A total of $514,378 of encumbrances remained open at the end of 2008. Thus, $114,378 must be drawn from the Contingent Reserve in 2009 to fund the amount of actual encumbrances in excess of the $400,000 included in the originally adopted 2009 budget.
WHEREAS, the 2009 Adopted Budget includes appropriations for estimated prior-year encumbrances totaling $400,000 and actual carry-forward encumbrances at the end of 2008 totaled $514,378;
NOW, THEREFORE, BE IT RESOLVED, that $400,000 be allocated from the miscellaneous appropriation for prior-year encumbrances and that an additional $114,378 be appropriated from the Contingent Reserve to the following departmental adopted budgets to fund expenditures for the 2008 year-end actual carry-forward encumbrances:
Allied & Emerging Neighborhoods: $113,056 (Various Uncompleted Contracts)
Miscellaneous Legal Services: $26,883 (ATC Case and Others)
Community and Economic Development: $8,384 (Furnishings)
Community Services: $10,969 (Various Uncompleted Contracts)
Comptroller: $3,401 (Furnishings)
Department of Civil Rights: $5,000 (Fair Housing Testing Contract)
Engineering: $30,560 (Solar Energy Consultant)
Parks: $2,232 (Miscellaneous)
Planning Unit: $260,967 (Zoning Code Rewrite and Neighborhood Grants)
Police: $45,349 (Supplies and Purchased Services)
Streets: $5,105 (Miscellaneous)
TOTAL: $514,378