TOWN STAFF REPORT RECOMMENDATIONS
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Discuss, consider and act to adopt Ordinance 1013 amending the Town of Westlake Municipal Budget for fiscal year 2024; and take appropriate action (Cayce Lay Lamas, Director of Finance).
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STAFF: Cayce Lay Lamas, Director of Finance
BACKGROUND:
Council is required to adopt an annual budget, which occurred via Ordinance 979 on September 25, 2023, for the fiscal year 2024. The year end budget amendment is presented to reflect the unaudited ending balance of revenues and overages to expenditures for the Town for fiscal year 2024. The changes to fiscal year 2024 include Council-approved purchases that were not included in the original adopted budget, unbudgeted spending previously communicated to Council, and the actual revenues received. Consideration and adoption of this ordinance is a routine and administrative action intended to provide an update on the financial position of the Town prior to receiving the final audit report.
The budgetary changes proposed will result in a net increase to fund balance of $11,895,850 to all funds. This is not the final audited change to fund balance. Revenues are amended when received revenues exceed the adopted budget. Expenditures are not amended down, with the exception of the rollover appropriations when necessary, to provide greater clarity to the difference between budget and final actual spending. Below are the highlights of these changes:
Description of Revenue Changes
Total revenues are being increased by $7,805,000.
Sales tax revenues received were significantly higher than the adopted budget due to overall activity. Sales tax in total is being amended $4,325,000.
Property tax revenues were slightly lower than the adopted budget due to higher successful protests of value than normal. Property tax in total is being amended down $75,000.
Permit and fee revenue was lower than the adopted budget to slower than expected development activity, but still above the annual average due to the one-time revenues received. Permit and fees in total are being amended down $750,000. Related development fees being amended include $100,000 for reforestation fees and $180,000 for Westlake Academy economic development fees.
Interest income received was significantly higher than the adopted budget due to higher interest rates. Interest income in total is being amended $1,705,000.
Utility revenues received were higher than the adopted budget due to an increase in water usage, an unexpected refund from the N-II line construction project, proceeds from a legal settlement, and the implementation of late fees in the last quarter. Utility revenue in total is being amended $2,285,000.
Description of Expenditure Changes
Total expenditures are being increased by $560,000.
General Fund expenditures are being increased by $620,000 for costs relating to the settlement of a lawsuit ($190,000), economic development agreements ($130,000), increased costs for third-party supplementary services, recruiting, and correcting allocations due to staff turnover in various departments ($260,000), the costs for contractual school resource officer services billed outside the contract ($130,000), and technology and street infrastructure services approved by Council during the year ($75,000).
The Public Improvement District Fund expenditures are being increased by $100,000 for administrative costs that will be reimbursed during fiscal year 2024.
The Cemetery Fund expenditures are being increased due to the management contract approved by Council during fiscal year 2024 ($20,000).
The Municipal Capital Projects Fund is being decreased because a budgeted project was not approved ($165,000). The transfer from the General Fund to the MCP Fund is being adjusted accordingly.
The Westlake Academy Expansion Fund is being increased by $585,000 for the additional costs for the modular buildings ($200,000), which will decrease available fund balance, and the gym renovation ($315,000) and improvements to the football field ($60,000), which will decrease the restricted fund balance.
The Utility Maintenance & Repair Fund is being decreased by $600,000 because a generator purchase was delayed. This will be amended for during fiscal year 2025.
Final contribution to or use of fund balance/retained earnings will be provided as part of the fiscal year 2024 audit.
DISCUSSION:
The final budget amendment is presented at a summary level for approval, based on the budgetary control level approved by Council.
|
Fund |
Category |
Adopted Budget |
Amendment |
Final Budget |
|
General Fund |
Revenues |
$16,964,595 |
$3,680,000 |
$20,644,595 |
|
|
Expenditures |
$12,969,411 |
$620,000 |
$13,621,411 |
|
4B Sales Tax |
Revenues |
$2,275,000 |
$1,000,000 |
$3,275,000 |
|
|
Expenditures |
$1,623,136 |
- |
$1,623,136 |
|
ED Fund |
Revenues |
$10,000 |
$180,000 |
$190,000 |
|
|
Expenditures |
$10,000 |
- |
$10,000 |
|
PID Fund |
Revenues |
- |
- |
- |
|
|
Expenditures |
$7,000 |
$100,000 |
$107,000 |
|
VA Fund |
Revenues |
$456,100 |
$325,000 |
$781,100 |
|
|
Expenditures |
$432,910 |
- |
$432,910 |
|
Cemetery Fund |
Revenues |
$14,925 |
$60,000 |
$74,925 |
|
|
Expenditures |
$21,600 |
$20,000 |
$41,600 |
|
Sales Tax Debt |
Revenues |
$1,623,136 |
- |
$1,623,136 |
|
|
Expenditures |
$1,623,136 |
- |
$1,623,136 |
|
Property Tax Debt |
Revenues |
$1,893,283 |
- |
$1,893,283 |
|
|
Expenditures |
$1,820,178 |
- |
$1,820,178 |
|
Town Capital |
Revenues |
$355,000 |
-$90,000 |
$265,000 |
|
|
Expenditures |
$280,000 |
-$165,000 |
$150,000 |
|
Arts & Sciences |
Revenues |
$50,000 |
$85,000 |
$135,000 |
|
|
Expenditures |
- |
- |
- |
|
WA Capital |
Revenues |
$55,000 |
$100,000 |
$155,000 |
|
|
Expenditures |
- |
$585,000 |
$585,000 |
|
Lone Star Fund |
Revenues |
$25 |
- |
$25 |
|
|
Expenditures |
- |
- |
- |
|
Utility Fund |
Revenues |
$6,355,277 |
$2,635,000 |
$8,990,277 |
|
|
Expenditures |
$5,786,490 |
- |
$5,789,490 |
|
Utility Vehicles |
Revenues |
$1,500 |
- |
$1,500 |
|
|
Expenditures |
- |
- |
- |
|
Utility Maint. |
Revenues |
$393,500 |
-$250,000 |
$143,500 |
|
|
Expenditures |
$696,000 |
-$600,000 |
$241,000 |
|
General Maint. |
Revenues |
$402,500 |
$25,000 |
$427,500 |
|
|
Expenditures |
$382,500 |
- |
$527,500 |
|
General Vehicles |
Revenues |
$30,000 |
$55,000 |
$85,000 |
|
|
Expenditures |
- |
- |
$180,000 |
The attached schedule provides additional information, including a budget amendment previously approved, unaudited actuals, and projected changes to fund balance for each fund. It must be noted that the numbers included in the attachment are subject to correction and adjustment, as necessitated by the annual audit, and will be presented as part of the final audit report for fiscal year 2024.
FISCAL IMPACT:
The Town of Westlake fiscal year 2024 amended budget will increase revenues by $7,805,000 and increase expenditures by $560,000, for a projected ending fund balance/retained earnings contribution of $11,895,850.
STAFF RECOMMENDATION:
Staff recommends approval of Ordinance 1013, as presented.
TOWN COUNCIL ACTION/OPTIONS:
1) Motion to approve Ordinance 1013, as presented
2) Motion to amend Ordinance 1013, with the following stipulations (please state stipulations in motion)
3) Motion to table
4) Motion to deny