Final public hearing set for city budget amendment
Council to meet Jan. 21
The final public hearing for an increase in total revenues and expenditures in the operating budget of $48,023,980 will be held before the Cape Coral City Council later this month
Financial Services Director Crystal Feast went over a budget amendment during the first reading at Wednesday’s council meeting.
The sources included grants at $459,975, debt at $21,434,291, transfers at $353,730, miscellaneous at $1,440,605, use of fund balance at $1,781,627, encumbrances – assigned fund balance at $22,375,884 and personnel at $67,868.
Feast said grants are not adopted as part of the budget each year. Once grants are presented and approved, they then become part of the budget amendment to memorialize and codify them in the budget.
“The $459,975 is new grant funding – outside funding that lowers the burden on local tax dollars,” she said. “It’s new money that we have to increase our revenue in the budget and associated budget expenditures.”
There were two projects that were presented to council previously and approved that constitute the debt. Those include the Yacht Basin improvements at $20,786,571 and the Jaycee Park improvements at $647,720 – both of which are new spending.
“Those proceeds need to be incorporated into the budget and associated construction expenditures related to these two projects,” Feast said.
The table shown at the council meeting also had transfers listed for the alleyway drainage improvements at $353,730. She said the funding source is general gas tax revenue. Since this was not originally budgeted for, Feast said they had to incorporate that into the budget amendment.
The next category on the chart was for miscellaneous, which has Local Capital Improvement funding at $1,010,373 and General Obligation Bond interest earning at $540,232.
Feast said they estimated the LCI funding lower.
“It’s new revenue that we have to incorporate into the budget, along with the planned spending to use for maintenance and equipment replacement at the charter school,” she said.
The Go Bond interest was for Festival Park, which at a previous council meeting added additional services for approval. Feast said the Go Bond interest earning identified was a funding source, so they had to incorporate that new revenue, along with the associated spending into the budget.
The fund balance had two items identified – Hancock Bridge Parkway Storm Drainage Improvements at $1,220,865, and Pine Island Road Safety Improvements at $560,762. These, Feast said, are both new spending for the two projects.
The encumbrance assigned fund balance of $22.3 million are the city’s prior commitments and obligations from the prior fiscal year that were not completed. Feast said they are services not rendered, or purchases not received.
“In order to meet obligations, we carry that forward and incorporate into this year’s budget. It allows us to comply with Florida Statute,” she said.
The last piece of the chart was for personnel, a position that shifted from custodial to a supervision position, which has a budget impact of about $68,000.
“If approved, it requires us to increase the budget for the property management fund by that amount,” Feast said.
“The new spending, excluding the encumbrances, is $25.6 million, 54.4% of the budget. If you exclude debt, which is paid overtime, it would be closer to 9%,” Feast said.
City Manager Mike Ilczyszyn said in the city charter requires operating appropriations.
“Department heads put together budget requests. I submit a budget proposal, and you all adopt a budget, formal appropriations,” he said, adding that they are making sure they are not double spending in budget allocations. “It’s a forced use it or lose it type of situation with the exception of encumbrance or capital projects that have a much longer life.”
The final public hearing for the budget amendment is set for Jan. 21.
To reach MEGHAN BRADBURY, please email news@breezenewspapers.com