Title
A Resolution Adopting Fiscal Year 2027 Budgets
Summary
Mayor Ralph Hellmich requests that Council consider adoption of the FY 2027 Budgets.
Body
WHEREAS, the Fiscal Year 2027 (FY2027) budget for the General Fund is not a balanced budget and is slated to spend approximately $14 million of reserves to aggressively address continued above average growth with measures that will ensure quality of life in our city, while maintaining sufficient reserves to weather unforeseen challenges that may arise, and
WHEREAS, budgets for the following City of Foley governmental funds are adopted in their entirety: Fire Ad Valorem, Gas Tax, Court Corrections, Jail Corrections, Foley Sports Tourism Event Center Operations, Foley Sports Tourism Multi-Use Fields Operations, Economic Incentives, Debt Services, and Impact Fee. The budget for the City of Foley Sanitation proprietary fund is also adopted, and
WHEREAS, budgets for funds of the following component units are included in the City's Budget Report: Public Facilities Cooperative District (PFCD), Public Athletic and Sports Facilities Cooperative District (PASFCD), and Public Cultural and Entertainment Facilities Cooperative District (PCEFCD), and
WHEREAS, the budgets are presented in summary form; however, a detailed account by account report is available by request from the Finance Director’s Office, and budgets will be presented in the Distinguished Budget Award format at a future Council meeting, and
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. Project schedules presented with budget documents are for informational and planning purposes only, and
WHEREAS, adoption of these budgets and their supporting documentation represent the Mayor and Managements best estimate of the City's financial condition and needs for FY2027. However, changing conditions may require amendments to the various budgets at any time and there is no guarantee that the Council will vote to approve expenditure of 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, 2026, through September 30, 2027, are adopted as prescribed herein. The summary budget document for each fund and other supporting documentation is attached to and made part of this resolution, and shall be distributed to the Mayor, Council, and City Directors.
SECTION 2: The legal level of budgetary control is established at the City-wide category level for the General Fund. Total expenditures for the City as a whole may not exceed the appropriated amounts within the following broad categories: Personnel, Capital Equipment, and Operational Expenses:
a. Departmental Accountability: Notwithstanding the City-wide legal level of control, Directors are required to operate strictly within the funding appropriated for their specific department.
b. Inter-Departmental Transfers: Budgeted dollars may not be transferred between departments without a written request submitted to the City Administrator and subsequent approval by Council resolution.
c. Inter-Category Transfers: Budgeted dollars may not be transferred between the three broad categories (e.g., from Personnel to Capital Equipment), regardless of department, without approval by Council resolution.
d. Intra-Departmental Transfers: Budgeted dollars may be transferred between line-item accounts within the same category and same department (e.g., from Office Supplies to Fuel) upon a Director's written request to the Finance Director/City Treasurer, provided the category total for that department is not exceeded.
e. Capital Procurement: Departmental capital purchases included in, and approved by this budget, are subject to further justification and adoption of resolution 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 approval by Council resolution 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; 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 (resolution) 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 Employee Raises for the FY27 Budget Year". Effective October 1st, the City’s Pay Classification Plan pay bands will be increased by 2% for inflationary adjustments based on CPI data. Employees whose job classification is subject to the Pay Plan will see their salary increased to the new minimum of the pay band associated with their job classification if their current salary falls below the new pay band minimum.
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 are zero GAP Days during the year covered by this budget. Effective FY2022, all full-time regular and part-time regular employees receive one floating holiday at the beginning of each calendar year.
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 FY2027 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 $8.9 million.
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 list of additional contracts with outside agencies that provide support services for various City functions, such as economic development, marketing, and recreational services, is attached to, and the contracts hereby approved by, this resolution.
SECTION 9: In fiscal year 2024, council adopted Resolution 24-1363 to create a program for public initiatives and community events. The attached schedules for Public Purpose Awards & Programs approves various awards and community events by declaring the public purpose and the money set aside for each award and event.
SECTION 10: Mayor and Council will receive regular reports to assist them in analyzing the City’s budget. The reports will present both summary and detail financial information and will compare the beginning budget and current budget for all departments with an organizational total. The reports will also be provided to Directors and supervisors 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 11: This Resolution shall become effective immediately upon its adoption as required by law.