The Fiscal Year (FY) 2021 budget was adopted by Council on September 8, 2020. This is the second amendment for the FY2021 Town of Addison annual budget.
Each year, the Finance Department 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 Council Special Projects, City Manager's Office, General Services, and Emergency Communications Departments in the General Fund. On June 22, 2021 the Council approved additional funding of up to $72,000 to Metrocrest Services to respond to the COVID-19 pandemic. This amendment appropriates this $72,000 in the Council Special Projects Department. An additional appropriation of $25,000 is needed in the City Manager's Office to provide funding for salary increases not included in the original budget. An additional appropriation of $5,000 is needed in the Emergency Communications due to communications expenditures slightly exceeding the original budget. An additional appropriation of $500,000 is needed in the General Services Department to provide seed money for a newly created Facility Maintenance Fund. This plan was a part of the Fiscal Year 2022 budget process to provide ongoing funding for the maintenance of Town facilities. These additional appropriations are offset by increased Sales Tax Revenue of $602,000 resulting in a net impact of $0.
- Additionally, this budget amendment authorizes the City Manager to transfer unexpended appropriations and excess revenue from the Fiscal Year 2020-2021 budget to the Self-Funded Projects Fund. The amount of this transfer (if applicable) will be known in late November 2021 after the Town has recorded all revenues and expenditures for Fiscal Year 2020-2021. Utilizing this method to provide funding to the Self-Funded Special Projects Fund was discussed during the Fiscal Year 2021-2022 budget process to eliminate budgeted transfers and the appearance of deficit budgeting. The Fiscal Year 2020-2021 estimate included in the Fiscal Year 2021-2022 budget included an additional transfer amount of $789,050.
Airport Fund
- An additional appropriation of $250,000 is needed in the Airport Fund to provide seed money for a newly created Facility Maintenance Fund. This plan was a part of the Fiscal Year 2022 budget process to provide ongoing funding for the maintenance of Town facilities. These additional appropriations are offset by increased Fuel Flowage Fee Revenue of $250,000 resulting in a net impact of $0.
Utility Fund
- An additional appropriation of $250,000 is needed in the Utility Fund to provide seed money for a newly created Facility Maintenance Fund. This plan was a part of the Fiscal Year 2022 budget process to provide ongoing funding for the maintenance of Town facilities. These additional appropriations are offset by a corresponding decreased appropriation in Water Purchases of $250,000 resulting in a net impact of $0.
Facility Maintenance Fund
- The proposed budget amendment recognizes $1,000,000 in Service Fee Revenue in this newly created fund from the General Fund ($500,000), the Airport Fund ($250,000), and the Utility Fund ($250,000).
Debt Service Fund
- An amendment is needed in the Debt Service Fund to recognize the bond proceeds and refunding cost associated with the 2021 General Obligation Taxable Refunding Bonds in the amount of $4,315,000. The transaction created approximately $1.5 million in total 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 $665,000. The net impact to the fund is $0.
| Fund |
Impact on Budgeted Expenditures |
Impact on Budgeted Revenues |
Impact on Fund Balance |
| General Fund |
$602,000 |
($602,000) |
$0 |
| Airport Fund |
$250,000 |
($250,000) |
$0 |
| Utility Fund |
$0 |
($0) |
$0 |
| Facility Maintenance Fund |
$0 |
($1,000,000) |
$1,000,000 |
| Debt Service Fund |
$4,315,000 |
($4,315,000) |
$0 |
| Grant Fund |
$665,000 |
($665,000) |
$0 |
The attachments reflect the proposed budget changes by fund in the ordinance and budget amendment summary. |