Title
AN ORDINANCE ADOPTING THE CITY OF HUDSON’S GENERAL FUND BUDGET OVERAGE COMMITMENT FOR HUDSON INFRASTRUCTURE.
Brief Description: This is an Ordinance directing the Finance Department to prepare draft appropriations for certain uses, at least in part, in an amount equal to any excess General Fund carryover balance.
Body
Legislative History
None.
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 purpose of this Ordinance is to designate at least 50% of any annual excess General Fund carryover balance for City infrastructure as determined and approved by Council as part of the City’s regular appropriations amendment legislation.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
Other [provide explanation]
Fiscal Impact
Currently Budgeted (Account #, $)
X Supplemental Appropriation Required as determined by Council
Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes [if so, explain why]
X No
Recommendation
Suggested Action
Staff recommends Council consider designating at least 50% of the General Fund excess carryover fund balance for infrastructure.
Should the excess fund balance be insufficient to pay the cost of any infrastructure project, staff recommends the excess fund balance will remain in the General Fund and be made available for future appropriation as approved by City Council.
In the event there is no excess fund balance in any given year, this fact will be reported to City Council and no further action on this matter will be necessary.
Staff also recommends City Council reserve the right to use the excess fund balance for any unforeseen expense.
Submitted by,
Christopher A. Banweg, Council Member