2024 Budget

Fiscal Year 2024 All Funds Budget

Funds Beginning Balance Estimated Revenues Estimated Expenses Ending balance
General Fund $14,908,493 $15,313,939 $13,697,709 $16,524,723
Special Revenue Funds $19,109,293 $7,893,992 $7,590,568 $19,412,717
Debt Service Funds $5,472,180 $4,389,000 $4,870,286 $4,990,894
Capital Projects Funds $9,070,882 $4,036,300 $8,029,640 $5,077,542
Fiduciary Funds $1,089,250 $212,594 $279,550 $1,022,294
Total Budget $49,650,098 $31,845,825 $34,467,753 $47,028,170

Revenue Estimates

  • Earnings Tax estimate of $13.5 million is a 5% increase over FY 2023 due to increased collections in 2023.
  • Real Estate Taxes are estimated to be at 3% above 2023 collections.
  • Al.l other revenue sources to remain relatively flat over the next five years

Expenditure Assumptions

  • Personnel estimates are in line with current union agreements and include a 3.75% COLA in FY 2024
  • Non-personnel line items such as contractual services, materials and supplies for the General Fund have increased an average of 11%. This average is higher than usual due to the addition of RITA processing fees.

General Fund Budget

City of Montgomery General Fund Budget Summary - Fiscal Year 2024
Projected Beginning Balance $14,908,493
Estimated Revenues and Transfers In $15,313,939
Estimated Revenues and Transfers Out $13,697,709
Positive Variance $1,616,230
Projected Ending Balance $16,524,723
6 Month Reserve Policy $6,848,855
Unreserved Fund Balance $9,675,869

General Fund Budget

  • FY 2024 General Fund Revenues and transfers-in are about 5% higher than the original FY 2023 Budget due to actual FY 2023 collections trending above estimates.
  • This includes the updated earnings tax projection to include 5% of receipts diverted to the General Bond Retirement Fund to save dollars to pay off the bond anticipation notes at an accelerated pace.
  • The 2023 General Fund estimated expenditures (excludes transfers out) increased by $1.3 million or 11% year over year due to cost-of-living adjustments for staff, increased materials and supplies cost in department budgets and RITA processing fees.
  • The budget includes staffing all positions at 100% of cost so any vacancies will generate budget savings while the position is recruited and ultimately filled.

Capital Projects Funds Budget

City Parks

  • FY 2024 includes replacement of playground equipment.

General Government

  • Fleet management program includes expenditure of $575,000.

Street Maintenance and Repair

  • Annual street asphalt overlay determined by pavement rating analysis estimated at $1.2 million

Roundabout Hardscape/Landscape Project

  • The FY 2024 Budget includes 2.4 million for the proposed hardscape and landscaping associated with the roundabout at Montgomery Road and Cross County Highway.

Fund Balance Policy

City of Montgomery General Fund Budget Summary - Fiscal Year 2024
Projected Beginning Balance $14,908,493
Estimated Revenues and Transfers In $15,313,939
Estimated Revenues and Transfers Out $13,697,709
Positive Variance $1,616,230
Projected Ending Balance $16,524,723
6 Month Reserve Policy $6,848,855
Unreserved Fund Balance $9,675,869

Fund Balance Policy Other Funds

  • General Fund (established target of six – twelve months of operating expenditures).
  • Capital Improvement Fund 410 - established target of $1,000,000.
  • Arts and Amenities Fund 485 (established at $376,237, equivalent to two substantial restricted bequests to the fund).
  • Fire/EMS Levy Fund 223 (established target of six – twelve months of operating expenditures).

 

Fund Description Policy Projected Balance 2027 Policy Met?
261 Street Maintenance and Repair No Policy $1,338,885 Yes
Fund 223 Fire/EMS Levy 6-12 months operating expenditures $15,902,973 Yes
Fund 410 Capital Improvement $1,000,000 $2,747,971 Yes
Fund 485 Arts and Amenities Restricted bequests of $376,237 $555,076 Yes

Next Steps

  • First reading of the budget on October 4.
  • Second reading on November 1.
  • Third reading and passage on December 6.
  • Any final appropriation adjustments for FY 2023 for consideration on last scheduled Council Meeting of 2023.

Contact

Maura Gray

Finance Director
513-792-8349

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