Proposed Allocation of FY-15 Excess Funds on Council Agenda

The City has identified funds which were appropriated for FY-15, but, were not spent for a variety of reasons. The bulk of those funds are identified for expenditure in agenda item U that the Council will consider at the March 8 meeting. Citizens who want to influence where those excess funds are spent should attend the Council meeting and make their recommendations known. Here is the agenda item:

City of Georgetown, Texas City Council Regular Meeting March 8, 2016 SUBJECT: Forwarded from the General Government and Finance Advisory Board (GGAF):  Consideration and possible action on the recommended potential uses of the Council’s Excess Revenues Special Revenue Fund/Year End 2015 General Fund Excess -- Laurie Brewer, Assistant City Manager and Leigh Wallace, Finance Director ITEM SUMMARY: In November,   the City Council reviewed and discussed the General Fund YE 2015 preliminary year end fund balances.  Council requested that the allocation of these funds be reviewed and discussed by GGAF for recommendations on the use of the funds. Staff is currently working with auditors on final balances.  As stated in November, there will be additional revenue over and above what is currently available.  Council SRF (estimated during budget process) $  515,714 Additional at Preliminary Year End (Dec 2015)     189,429 Total reported in December 2015 $  705,143     Additional at final YE (Jan 2016) $  379,902      Total Available $1,085,045 The GGAF recommended the following items for funding:     Economic Uncertainty (Rainy Day) Fund $  500,000 Personnel related impacts $  250,000 Grace Heritage Center - Phase I repairs $  150,000 Total Allocated $  900,000   Balance remaining $ 185,045 FINANCIAL IMPACT:  The funds that have not been allocated will remain in the Council’s Special Revenue Fund for future consideration and use. The $500,000 “economic uncertainty/rainy day fund” allocation is approximately 1% of current General Fund operating expenditures.  Policy language regarding the use of the economic uncertainty funds is currently being drafted and will be reviewed by GGAF in March. COMMENTS: The City’s Fiscal and Budgetary Policy outlines the uses for such funds as follows: L.     Use of Unanticipated and Unappropriated General Fund Balances - Within 90 days after fiscal year end, staff will report the projected general fund balance to Council.  In the event that unexpected, unbudgeted amounts are determined to be available in the General Fund after year end, these funds may be used for any of the following purposes, as approved by the City Council: 1.     to fund capital projects; 2.     to fund equipment purchases in lieu of issuing debt; 3.     to reduce outstanding city debt, including bonded indebtedness and unfunded pension liabilities; 4.     to fund contingent liabilities such as the benefit payout reserve, cemetery trust fund, and similar obligations of the city; 5.     to take other steps to reduce property tax rates or mitigate any future increases; 6.     to hold those funds in reserve for future commitments or contingencies that may be pending, and/or 7.     to fund an economic uncertainty reserve of up to three (3) percent of annual General Fund operating expenditures.