23 - 2022-23 Year End Budget Amendment

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Item No. 23 TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: 2022-23 YEAR END BUDGET AMENDMENT DATE: November 13, 2023 BACKGROUND: In September, the City did its annual year end "housekeeping" ordinance increasing certain departmental budgets (while decreasing others) in the General Fund to cover expenditures. The overall General Fund budget did not increase from that ordinance. STATUS OF ISSUE: In making the estimates used in the September amendment ordinance, I overlooked the payroll accrual of the September work days that were not paid until October. The way the pay periods fell this year, the payroll accrual included a whole pay period. In short, the pay period occurred in FY22/23, was paid in FY23/24 to the employees, but accrual requires it be charged back against FY22/23. We missed it this year. Also for those departments that have shifts (Police, Fire, EMS, and both Treatment Plants), Saturday September 30'x' was included and added another day to the accrual. The computer budgets 26 pay periods in each year which is what actually happens within the year. The accrued pay period amounted to a 27"' pay period in the 2022-23 budget year. In the general fund that amounts to $752,679 of the $899,740 adjustment being requested. The remainder was departments attempting to utilize unspent budget to accomplish various tasks, goals and projects. The City is fortunate that 2022-23 General Fund revenues exceeded budget by 11.87% which is more than enough to cover the requested amendment and still add to the General Fund reserve. Therefore, while on paper we exceeded our expenditure budget for the General Fund, in reality so did revenue which means our reserve was not touched other than to add additional funding to it. An ordinance has been prepared that authorizes the Finance Director to make the necessary budget amendments pursuant to City Code and Charter. BUDGET: Please see the attached ordinance. RECOMMENDATION: Motion to approve an ordinance amending the Fiscal Year 2022-23 budget.