Title
A Resolution Adopting Fiscal Year 2022 Budgets
Summary
Ralph Hellmich, Mayor, and Mike Thompson, City Administrator- request that Council consider adoption of the FY 2022 Budgets.
Body
WHEREAS, budgets for the following City of Foley funds are adopted in their entirety: General Fund, Fire Dept. Ad Valorem Fund, Library Fund, Recreational Activities Fund, Gas Tax Fund, Court Corrections Fund, Jail Corrections Fund, Foley Sports Tourism Event Center Operations, Foley Sports Tourism Event Multi-Use Fields Operations, Economic Incentive Funds, Debt Service Funds, Impact Fee Fund, and the Sanitation Fund, and
WHEREAS, budgets for the following component units are included in the City's Budget Report: Public Facilities Cooperative District (PFCD) Funds, Public Athletic and Sports Facilities Cooperative District (PASFCD) Funds, Public Cultural and Entertainment Facilities Cooperative District (PCEFCD) Funds, and Coastal Alabama Farmers and Fishermen’s Market, Inc.(CAFFM) Funds, and
WHEREAS, the City’s budget is presented in the Distinguished Budget Award summary format but a detailed account by account report is available by request through the City Clerk's Office.
WHEREAS, the budgets for operational costs in funds where capital projects are scheduled are adopted, however; infrastructure maintenance and capital construction projects in these funds are approved on a per project basis and do not expire until the project is complete, including projects in the General Fund related to Hurricane Sally. Project schedules contained in the budget document are for informational and planning purposes only, and
WHEREAS, adoption of these budgets and their supporting documentation represent the best estimates of the City's financial condition and needs for Fiscal Year 2022 (FY2022). However, changing conditions may require amendments to the various budgets at any time and there is no guarantee that the City Council will expend funds on any given project or other area covered by these budgets.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Foley, Alabama, as follows:
SECTION 1: These budgets covering the period October 1, 2021, through September 30, 2022, are adopted as prescribed herein. The Distinguished Budget Award document, in its entirety, is attached to and made part of this resolution, and shall be distributed to the Mayor, Council, and City Directors, and published on the City’s website for public view.
SECTION 2: General Fund departmental budgeted dollars may not be exceeded in the following broad categories:
Personnel; Capital Equipment; Operational Expenses.
a) Directors are expected to operate with the funding appropriated for their department. Should a funding increase be required, a written request is to be submitted to the City Administrator and approved by Council prior to expenditure of funds.
b) Departmental budget dollars may be transferred between accounts within a category upon a Directors written request to the Finance Director/City Treasurer.
c) Departmental budget dollars may be transferred between the three categories of a department only after approval by the City Administrator and action of the City Council.
d) Departmental capital purchases included in, and approved by this budget, are subject to further justification and approval by Council prior to starting the requisition process (i.e. request for purchase order or letting of bids).
SECTION 3: The guidelines established by the City's Procedures for Projects must be followed, and required documentation submitted for Council approval, prior to beginning a capital or infrastructure improvement project.
SECTION 4: New positions have been approved for addition to the City's Pay Classification Plan in this budget as more thoroughly described in the “Fund Balance-Major Revenue-Major Expenses” section of the Budget document. However, in accordance with the City's Personnel System Policy, new positions (beyond those approved in this budget) may be established only with the approval of the City Council. Hiring of employees for the filling of vacant positions will continue to be monitored for sufficient justification at the time of request and approval obtained from the Mayor and/or the Mayors designee.
SECTION 5: Pay-for-Performance Merit increases remain at the same percentages as was approved in the previous year and will be administered per the "Policy for Merit Raises for FY22 Budget Year" as more thoroughly described in the “Fund Balance-Major Revenue-Major Expenses” section of the Budget document.
SECTION 6: The City Council previously approved a "GAP Day and Holiday Pay Policy" that approves paid personal days for employees in order to cover gaps surrounding approved City holidays. There is one GAP Day during the year covered by this budget. New this year is the addition of one floating holiday that can be used as defined in the policy.
SECTION 7: In accordance with the Governmental Accounting Standards Board (the GASB) Statement No. 54, Resolution No. 21-1276 adopted the City's most current Fund Balance Policy. Accordingly, the FY22 budget now being adopted has been analyzed and complies with the policy. The General Fund Cash Flow and Fund Balance Analysis presented herein depicts that the minimum fund balance goal will be exceeded by approximately $12,516,384.
SECTION 8: The attached schedules for Grants and Contracts for Public Purpose approves various agreements with outside agencies for the upcoming year by declaring the public purpose and the money set aside for each organization. A complete list of these contracts and additional contracts with outside agencies that provide support services for various City functions, such as economic development, marketing, and recreational services, is also attached to, and the contracts hereby approved by, this resolution.
SECTION 9: Mayor and Council will receive regular reports that will assist them in ensuring that no departmental level budgets are exceeded without permission. The reports will present both summary and detail financial information and will compare the beginning budget and current budget for each department with an organizational total. The reports will also be provided to Directors and Area Managers who are advised that there is a critical emphasis on not exceeding stated budgets and on the use of best practices in the expenditure of public funds.
SECTION 10: This Resolution shall become effective immediately upon its adoption as required by law.