Title
Consider/Discuss/Act on Ordinance Amending the Fiscal Year 2020-2021 Budget for McKinney Economic Development Corporation (MEDC) and McKinney Community Development Corporation (MCDC) to Re-appropriate Projects/Items Carried from Last Fiscal Year
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: December 15, 2020
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
• Approval of ordinance.
ITEM SUMMARY:
• The MEDC and MCDC reappropriations in this ordinance are projects or purchases that were originally budgeted in FY2019-20 but were not spent during the last fiscal year.
• Most of the items are projects that are in progress and are for goods not delivered or services not rendered during FY2019-20.
• Reappropriations are as follows:
o McKinney Economic Development Corp (MEDC) $1,825,675
o McKinney Community Development Corp (MCDC) $22,274,263
BACKGROUND INFORMATION:
• The City Charter states that “at the close of each fiscal year, the unencumbered balance of each appropriation shall revert to the fund … and shall be subject to future appropriation, but appropriations may be made in furtherance of improvements or other objects of work of the City which will not be completed within the current year”.
• Funds that were budgeted and not used during the fiscal year are not available for their use unless appropriated in the ensuing fiscal year’s budget.
FINANCIAL SUMMARY:
• The fund balances will not be affected as the re-appropriated items were budgeted in the previous fiscal year; FY2019-20 fund balance will be increased, and FY2020-21 fund balance will be decreased by the same amount. The total FY2020-21 appropriations for MEDC and MCDC will increase.