| Present, Discuss, and Consider Action on an Ordinance to Amend the Town's Annual Budget for the Fiscal Year Ending September 30, 2022 to Provide Funding for Stone Cottage Repairs, Metrocrest Services Facility Contributions, Contractual Services for Real Estate Brokerage, Tree Plantings, Consulting Services for the Texas Ambulance Supplemental Payment Program, 2022 General Obligation Refunding Bonds, and Prior Year Encumbrances. |
The Fiscal Year (FY) 2022 budget was adopted by Council on September 14, 2021. This is the first amendment for the FY 2022 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.
During FY 2021 the Town received insurance proceeds related to damage incurred due to Winter Storm Uri. Insurance proceeds in the amount of $41,875 were recorded in the General Fund related to damage that occurred at the Stone Cottage. This amendment requests to transfer those funds from the General Fund to the Hotel Fund, offset by an increase of $41,875 in sales tax. Additionally, this amendment proposes recognizing insurance proceeds for the damage to the Stone Cottage that have been received in FY 2022 in the amount of $14,444 as well as the capital repairs at the Stone Cottage in the amount of $56,319 from the Hotel Fund.
An amendment is needed in the Self-Funded Projects Fund for prior year encumbrances for lighting improvements at Celestial Park ($25,000), Addison Athletic Club Design ($16,000), and ($215,000) for the following: Sam's Club Special Area Study, Unified Development Code, DART engineering review, and Addison Circle Redevelopment. An amendment is also needed in the Self-Funded Projects Fund for contributions to Metrocrest Services facility campaign (approved by Council on January 11, 2022) in the amount of $120,000, consulting services in the amount of $60,000 to acquire funding through Texas Ambulance Services Supplemental Payment Program that were received in October 2021, tree plantings in the amount of $50,000 utilizing tree mitigation funds, and real estate brokerage services from Cushman and Wakefield in the amount of $200,000 (these services were approved by Council on September 22, 2020).
An amendment is needed in the Debt Service Fund to account for the issuance of the 2022 General Obligation Refunding Bonds. The proposed amendment recognizes $9,600,000 in proceeds and uses to pay off the refunded bonds. An ordinance authorizing this transaction was approved by Council at the January 11, 2022 meeting. The transaction will generate $1,003,244 in debt service savings over the next ten years.
The table below illustrates the net impact the proposed budget amendment has on each fund and in total:
| Fund |
Impact on Budgeted Expenditures |
Impact on Budgeted Revenues |
Impact on Fund Balance |
| General Fund |
$41,875 |
$41,875 |
$- |
| Hotel Fund |
$56,319 |
$56,319 |
$- |
| Self-Funded Projects Fund |
$686,000 |
$- |
($686,000) |
| Debt Service Fund |
$9,600,000 |
$9,600,000 |
$- |
| Total |
$10,384,194 |
$9,698,194 |
($686,000) |
The attachments reflect the proposed budget changes by fund in the Ordinance and budget amendment summary. |