The Fiscal Year (FY) 2020 budget was adopted by Council on September 10, 2019. This is the second amendment for the FY2020 Town of Addison annual budget.
Each year, Finance staff reviews the budget to determine which items should be recognized with formal budget amendments. When budget variances occur that are outside of the authority of the City Manager, these adjustments are presented to the council in the form of a budget amendment.
Major items include:
General Fund
- An amendment is needed for the Fire Department in the General Fund. Health Insurance expenditures in FY 2020 were budgeted using a fixed amount per employee regardless of actual benefit elections. The Fire Department has a higher percentage (than other departments) of employees that elect family health insurance coverage resulting in a lack of appropriation in that department. The amendment adds funding to cover the cost of actual employee health insurance elections in the amount of $100,000. These additional expenditures are offset by increased Building Permit Fees of $100,000 resulting in a net impact of $0.
Capital Improvements Program
- This amendment adds funding for the construction of the Airport Customs and Border Protection Facility. In the 2018 Airport Certificates of Obligation Fund the original budget included an appropriation of $5,068,176. This budget amendment proposes to appropriate the remaining bonds funds in the amount of $1,912,415 in order to exhaust them prior to utilizing operating reserves. The appropriation is partially offset by interest income in the amount of $87,261.
- This amendment adds funding for the Belt Line Utility Relocation Project and Belt Line Road 1.5 Project from residual 2014 General Obligation bond funds in the amount of $800,000. The appropriation is partially offset by interest income in the amount of $35,857.
- The third amendment adds funding for Basin I Sewer improvements from residual 2014 Utility Certificates of Obligation bond funds rather than operating funds in the amount of $40,000. The appropriation is partially offset by interest income in the amount of $22,632.
Debt Service Fund
- An amendment is needed in the Debt Service Fund to recognize the bond proceeds and refunding cost associated with the 2020 General Obligation Taxable Refunding Bonds in the amount of $13,205,000. The transaction created approximately $2 million in interest savings over the remaining life of the debt. The net impact to the fund is $0.
Grant Fund
- An amendment is needed in the Grant Fund to recognize revenue and associated expenditures associated with CARES Act funding received from Dallas County in the amount of $894,465. The net impact to the fund is $0.
| Fund |
Impact on Budgeted Expenditures |
Impact on Budgeted Revenues |
Impact on Fund Balance |
| General Fund |
$100,000 |
($100,000) |
$0 |
| Airport 2018 CO Bond Fund |
$1,912,415 |
($87,261) |
$1,825,154 |
| 2014 G.O. Bond Fund |
$800,000 |
($35,857) |
$764,143 |
| 2014 Utility CO Bond Fund |
$40,000 |
($22,632) |
$17,368 |
| Debt Service Fund |
$13,205,000 |
($13,205,000) |
$0 |
| Grant Fund |
$894,465 |
($894,465) |
$0 |
The attachments reflect the proposed budget changes by fund in the ordinance and budget amendment summary. |