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 current available excess is as follows:
Excess Balance at 12/31/2025 $3,311,546
Inclusive Playground ($593,056)
First Appropriations ($199,000)
Second Appropriations ($122,826)
Current Excess Balance $2,450,664
To meet the 50% threshold for infrastructure, we would need to spend $1,655,773 ($3,311,546 x 50%). We’ve already spent $593,056 on the inclusive playground leaving an additional $1,062,717 needing to be spent to meet the 50% threshold.
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.
We’ve also attached the list of unfunded capital projects from the 2026-2030 Five-Year Plan.
Timing Considerations
None.
Fiscal Impact
Currently Budgeted (Account #, $)
X Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff is recommending the following uses of the current excess:
Third Appropriations $500,000
Salt Barn $650,000
Velocity FttH Cost Increase $350,000
Future Storm Water Projects $950,664
Total $2,450,664
Submitted by,
Thomas J. Sheridan, City Manager
Jeffrey F. Knoblauch, Asst City Manager - Finance Director