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Consideration of request by Finance Director for approval of 2024 Budget Re-estimates in advance of 2025 Budget Adoption
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
The Common Council annually approves a current year (2024) budget re-estimate. This is typically adopted in November along with next year budget (2025). However, due to the need to pay bills in advance of the November adoption, I am requesting pre-approval of 3 items.
B. Background/Options
There are currently three departments requiring additional spending authority to pay bills through the end of the fiscal year. While this is typically done as part of the next year budget adoption in November, in these three situations, bills are outstanding and should be paid prior to budget adoption.
Fire Department Equipment Repairs
$40,000 is necessary to reflect the actual repair costs to our vehicle fleet in 2024. Additional repairs and replacement tires are needed for the fleet that have not yet been completed due to already expending the annual budget. $304,519 has been spent to date of a revised budget of $290,077. $70,000 was originally budgeted but increased by fund transfer due to a significant accident for which there will be insurance proceeds but less the City's $25,000 deductible. In general, the base budget has not kept up with increasing cost and complexity of the Fire vehicles and an increase is also proposed for the 2025 Budget that will be presented in October.
Property Tax Litigation
The litigation reserve account was created a number of years ago to isolate and fund the extraordinary litigation costs, primarily associated with property tax litigation, experienced by the City, outside the regular operating budget of the City Attorney's office. Annually the litigation reserve budget is set as an estimate of anticipated litigation costs for each calendar year, but litigation by its very nature is often unpredictable in scope and complexity.
We pro...
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