Fiscal Note
The proposed resolution amends the 2020 Adopted Operating Budget in order to make technical adjustments within various agency budgets. In certain instances, the Adopted Operating Budget includes funding for expenditures centrally with the anticipation of transferring those funds to agency budgets throughout the year when actual spending patterns are known. This is the case for both sick leave escrow and carry forward encumbrances; the amounts proposed in the midyear appropriation adjustment are based on actual expenditures through the first half of 2020. All of the proposed adjustments through this resolution are net neutral within the General Fund and have no impact on the Expenditure Restraint Program.
Sick Leave Escrow
Assessor: $126,000
Attorney: $119,000
Fire: $425,000
Parks: $57,000
Police: $1,097,000
Streets: $127,000
Traffic Engineering: $79,000
Direct Appropriations: ($2,030,000)
The 2020 Adopted Operating Budget includes $2.77m for sick leave escrow payments made from the General Fund. Through the 2nd Quarter, $2.5m has been paid out by General Fund agencies. The resolution recommends transferring funds only to those agencies where the sick leave escrow amount is contributing to a deficit in the agency’s overall budget.
Carry Forward Encumbrances
Common Council $200
Employee Assistance Program: $6,100
Finance: $25,000
Fire: $17,600
Human Resources: $600
Library: $19,100
Planning: $149,600
Police: $300
Streets: $6,600
Direct Appropriations: ($225,100)
The 2020 Adopted Operating Budget includes $400,000 for encumbrances associated with contracts that span multiple years, the total amount carried forward from 2019 totals $225,100. The balance of the budget for carry forward encumbrances ($174,900) will be transferred to the Contingent Reserve.
Intra-Agency Transfers
The Assessor requires a transfer across major categories of spending. The resolution proposes transferring $20,000 from purchased services to supplies. The increased supplies budget is for billing software costs that were originally budgeted purchased services but are more appropriately charged to supplies.
The Police Department requires a transfer across major categories of spending. The resolution proposes transferring $215,000 from purchased services to supplies. The increased supplies budget is for medical supplies related to the Covid-19 virus and food and supplies related to the protests.
Library Appropriation
In 2020, the Library will receive $1,189,090 from Dane County for providing services to residents of other municipalities in the county. Also in 2020, the Library will pay Dane County $1,317,362 for Madison residents’ use of other municipal libraries in the county, $201,318 for facility expenses incurred by local libraries in serving non-residents and $172,114 for delivery service provided as part of a county contract with the South Central Library System. In the 2020 adopted operating budget, the net of these transactions of $501,705 was recorded in the Community Agency Contracts account. Per accounting standards, the revenue and expense should be recorded separately. To properly reflect the revenue and expense, the Library’s 2020 adopted operating budget needs to be amended to add $1,189,090 in Other Government revenue and $1,189,090 in expense Community Agency Contracts. There is no impact on the levy with this change.
Title
Amending the 2020 Adopted Operating Budget to transfer funds within agency budgets based on projected spending through the 2nd Quarter of 2020.
Body
WHEREAS, the 2020 Adopted Operating Budget includes $2,770,000 within Direct Appropriation for sick leave escrow payments associated with payments made by the City for health insurance benefits upon the retirement of employees; and,
WHEREAS, the 2020 Adopted Operating Budget includes $400,000 within Direct Appropriations for encumbrances that carried forward from 2019; and,
WHEREAS, these funds are budgeted centrally and expenditures are incurred within agency budgets, the resolution authorizes transferring appropriation to various agency budgets based on actual spending through the first half of 2020; and,
WHEREAS, the Assessor requires an amendment to transfer appropriation across major spending categories; and,
WHEREAS, the Police Department requires an amendment to transfer appropriation across major spending categories; and,
WHEREAS, the Library requires an appropriation to add $1,189,090 in Other Government revenue and $1,189,090 in Community Agency Contracts expense to properly record the 2020 Dane County Contract;
NOW THEREFORE BE IT RESOLVED, that the Common Council amends the 2020 Adopted Operating Budget to transfer $2,030,000 from Direct Appropriations to the following agency budgets for actual sick leave escrow payments made through the first half of 2020:
Assessor: $126,000
Attorney: $119,000
Fire: $425,000
Parks: $57,000
Police: $1,097,000
Streets: $127,000
Traffic Engineering: $79,000
Direct Appropriations: ($2,030,000)
BE IT FURTHER RESOLVED, that the Common Council amends the 2020 Adopted Operating Budget to transfer $225,100 from Direct Appropriations to the following agency budgets for encumbrances that were carried forward from 2019, and $174,900 remaining as a balance of the appropriation for the carry forward encumbrances will be transferred to the Contingent Reserve:
Common Council $200
Employee Assistance Program: $6,100
Finance: $25,000
Fire: $17,600
Human Resources: $600
Library: $19,100
Planning: $149,600
Police: $300
Streets: $6,600
Direct Appropriations: ($225,100)
BE IT FURTHER RESOLVED, that the Common Council amends the 2020 Adopted Operating Budget to transfer $20,000 from purchased services to supplies within the Assessor’s budget for billing software costs; and,
BE IT FURTHER RESOLVED, that the Common Council amends the 2020 Adopted Operating Budget to transfer $215,000 from purchased services to supplies within the Police Department budget for medical supplies and food; and,
BE IT FINALLY RESOLVED, that the Common Council amends the 2020 Adopted Operating Budget to add $1,189,090 in Other Government revenue and $1,189,090 in Community Agency Contracts expense in the Library budget.