PLACEMENT: Public Hearings
TITLE:
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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 wh...
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