PLACEMENT: Public Hearings
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FUND BALANCE ADJUSTMENTS THAT ARE NECESSARY FOR FISCAL YEAR 2025
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EXECUTIVE SUMMARY:
executive summary
Each year staff reviews fund balance, monies which are not expended at the end of each fiscal year and amends the budget accordingly. These adjustments are for projects that were planned and approved in Fiscal Year (FY) 2024 but not completed prior to September 30, 2024. Funds that are remaining that are not for a specific project in Fiscal Year 2024 will be placed in reserves.
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DEPARTMENT: Administration
PREPARED BY: Name: Stephanie Merle
Title: Director of the Office of Management and Budget
REQUESTED BY: Stephanie Merle, Director of OMB
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
Fund balances are those funds that remain at the end of a fiscal year. These monies are estimated and budgeted each year to reflect the remaining funds from the previous fiscal year. These remaining funds are due to one, or a combination of the following: planned expenditures were not made, expenditures were less than planned, revenues anticipated were not collected, and more revenues were collected than planned.
During the budget process fund balance estimates are made prior to the month of June. These estimates are only adjusted further when there has been a significant change in a fund that would warrant such an adjustment. Once the fiscal year has begun, and the previous year fully closed, fund balances for the previous fiscal year are then calculated. Based on whether more or less funds are available than estimated, fund balances in each fund are adjusted accordingly. Adjusting the fund balances allows projects which were planned but not completed to have funding available to continue and is sound fiscal practice as the budget will reflect an actual number rather than an estimate.
The fund balance allocations are made for various reasons: to reallocate monies for those projects which were planned in FY24 but not completed, for housekeeping, and to correctly reflect budget amounts or increase reserves.
Projects planned in FY24 but not completed:
These projects vary between allocations made within other projects that were previously approved by the Board. Reallocation of the monies to the same projects will allow the continuation and/or completion.
Housekeeping items:
Housekeeping items are done to clarify a particular situation or to correct an error. Correction to these funds is critical to maintaining budgets.
Increasing or reducing reserves:
If there is fund balance available and no project monies need to be carried into the next year or no other appropriate allocation is necessary within the fund, then any remaining fund balance is placed into reserves. If there was an overestimate in fund balance, then there will be a reduction made within the reserve account.
The FY25 final budget was adopted by resolution during a public hearing. Section 129.06(2) Fla. Stat. (2010) allows for budget adjustments and has specific instances to allow the adjustment and the method by which the adjustments can be approved. A public hearing is necessary for adjustment to any funds, other than proprietary funds (enterprise funds) and grants Section 129.06(2), (f), (a)-(e) Fla. Stat. (2010). Advertisement requirements for the public hearing are the same as for the budget, which is at least two days, but not more than five days, before the date of the hearing. All notice requirements have been made in accordance with the law.
Noteworthy comments for FY25:
Upon Fiscal Year 2024 year-end fiscal review, County Administration and staff evaluated and identified favorable non-ad valorem revenue opportunities that resulted in unanticipated over-collection to the benefit of county operations. These sources included state revenue sharing and local government sales taxes, interest earnings, and fee-based services that the county provides. Of special note, the Parks and Recreation Department’s special facilities, such as the Seaside and Sand Dune Cafes, Phipps Park, Sailfish Sands Golf Course, and the Manatee Pocket Mooring Field, each accumulated net positive revenues that exceeded their respective expenditures and allowed the department to reinvest in those facilities by establishing Fixed Asset Replacement Budgets (FARB) for future maintenance needs.
Other initiatives contained in this year’s fund balance include additional investment into the County’s Disaster Recovery fund and replenishment of the expenditures made during post-Hurricane Milton recovery efforts, which included the clean-up of large volumes of debris caused by the outbreak of tornadoes during the early hours of the storm. Additionally, the County anticipates Federal Emergency Management Agency (FEMA) funding to offset these expenses in the near future, ultimately restoring the Disaster Recovery Fund and adequately preparing the County for unanticipated emergency events. The balance of the budget request made for the Transportation Disadvantaged program has also been allocated through this process as previously directed during the FY25 Budget Workshop.
The Budget Resolutions will be provided via Supplemental Memorandum.
ISSUES:
Adjusting the fund balances is a sound fiscal practice. If fund balance adjustments are not done, some projects cannot be completed, and the County stands the risk of receiving management comments from our independent auditors for not having an accurate adjusted budget.
LEGAL SUFFICIENCY REVIEW:
To the extent this item contains legal issues; it has been reviewed for legal sufficiency, although this is primarily a matter of Board policy.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board adopt various Budget Resolutions to amend the various taxing authorities and non-taxing authority funds to allocate available monies from the adopted fund balance and other revenue sources in the FY25 Budget.
ALTERNATIVE RECOMMENDATIONS
Move that the Board provide alternative direction.
FISCAL IMPACT:
RECOMMENDATION
Allocating the funding as planned will allow projects which were planned in FY24 to be completed in FY25. Monies that were not allocated for a specific project will be placed into reserves within the specific fund.
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Non-County Funds |
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As determined on each Budget Resolution |
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ALTERNATIVE RECOMMENDATIONS
Projects which were planned in FY24 will not be completed in FY25. The monies will remain within the specific fund with the fund balance budget not accurately reflecting the amount available.
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☒Other: 26 Budget Resolutions
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