Fiscal Note
The adopted 2008 Operating Budget includes $400,000 for prior-year encumbrances and the 2008 Planning Unit budget includes an additional $150,000 to fund a portion of the encumbrance associated with the zoning code re-write project. Since actual encumbrances at the end of 2007 totaled $853,805, the difference of $303,805 must be appropriated from the Contingent Reserve. Following adoption of this resolution, the available Contingent Reserve balance is expected to total $667,195. There is no impact on the tax levy or State Expenditure Restraint Program eligibility limits.
Title
Allocating funds appropriated in the 2008 Operating Budget for prior-year encumbrances to match actual carry-forward encumbrances in various departmental accounts and appropriating $303,805 from Contingent Reserve to fund additional year end encumbrances.
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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 2008 budget. In addition, $150,000 was included in the 2008 Planning Unit budget for a portion of the ongoing zoning code re-write, a project that was contracted for in 2007 and encumbered at the end of the year. The difference between the total of these budgeted amounts and the total actual carry forward of encumbrances must be appropriated from the Contingent Reserve.
For fiscal years 2003, 2004 and 2006, actual prior-year encumbrances were less than the $400,000 budgeted, and the Contingent Reserve balance was increased by approximately $24,000, $42,00...
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