Title
Excess General Fund Carryover Balance
Brief Description: This is a discussion with Council about the use of the General Fund excess carryover balance. City Council previously passed an ordinance stating which, if any, existing unfunded infrastructure project(s) should be completed with the excess General Fund carryover balance, so that not less than 50% of the excess be spent on infrastructure. Staff has prepared a list for Council to consider.
Body
Legislative History
Ordinance 24-152 adopting the City of Hudson’s General Fund budget overage commitment for Hudson infrastructure.
Purpose & Explanation
The Finance Department calculates the estimated year end unencumbered General Fund balance as part of the annual budget and Five-Year Plan preparation. The actual unencumbered General Fund year-end balance is ordinarily greater than what was estimated due to conservative budgeting causing an “excess carryover balance”.
The excess balance at 12/31/2025 was $3,311,546; 50% is $1,655,773. Council previously approved $593,056 for the General Fund share of the inclusive playground and $321,826 in additional appropriations leaving a balance of $2,396,664.
If Council desires to meet the 50% threshold, we would need to spend an additional $1,062,717 ($1,655,773 - $593,056). The additional appropriations of $321,826 were not for infrastructure.
Attached is a list of road resurfacing projects and other smaller projects/purchases for Council’s consideration on the use of the excess funds. Also attached is the list of connectivity projects. Both the resurfacing projects and connectivity list are in priority order.
Timing Considerations
If approved, the road resurfacing projects can be completed in 2026.
Fiscal Impact
Currently Budgeted (Account #, $)
X Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends Council fund the additional paving projects to meet the 50% minimum usage of the excess funds. We recommend keeping the remaining excess in the fund for future uses.
Submitted by,
Thomas J. Sheridan, City Manager
Jeffrey F. Knoblauch, Asst City Manager - Finance Director