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Recommendation for adoption of a Budget Amendment and Fund Transfer Policy
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Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
Change in circumstances after budget adoption may require a change to the Milwaukee Metro Fire and Rescue (MMFR) Corporation’s adopted budget. Maintaining a policy to address these circumstances is a best practice.
B. Background/Options
Change in circumstances after budget adoption may require an amendment or transfer within the Corporation’s adopted budget. An amendment is defined as a change that would increase the total authorized expenditure amount or cause a change in fund balance (i.e. the change does not net to zero). A transfer is a reclassification of expenditures or revenues that has no impact on the adopted total budget amount or the fund balance of the Corporation.
The attached recommended policy provides for three levels of approval depending on the amount and nature of the budgetary change and whether or not it increases total adopted expenditures or impacts fund balance. This policy also defines the level of budget control and how the Corporation shall adjust its budget for unanticipated revenues.
Per the Corporation’s legal counsel, MMFR is not subject to Wis. Stat. 65.90, so the publication and alteration requirements for cities do not apply to MMFR. This proposed policy does not require the publication of any proposed budget change other then what is required by the open meetings laws.
C. Fiscal Impact
There is no fiscal impact from the adoption of this policy.
D. Recommendation
I recommend adoption of the “Budget Amendment and Fund Transfer Policy”