ITEM TITLE:
#24-38 - Amending the 2024 City Budget by Appropriating an Additional $150,000 to Leave Liability Reserve for Leave Cash-Outs to be Transferred from Budget Variance Reserve
SUBMITTED BY: Jordan Nelson, Finance Director
FISCAL NOTES:
Expenditure Required: $150,000
Unencumbered Balance: $398,536
Funding Source: 350-0350-55000, Budget Variance Reserve
RECOMMENDATION:
Approve
SUMMARY STATEMENT:
This resolution proposes a budget revision to provide for leave time “cash-outs” for the remainder of 2024.
“Cash-outs” are triggered by elective requests by employees or mandatory payments following separation of employment.
Separations by employees with large leave balances have occurred with more frequency than predicted during the annual budgeting process.
Staff estimates annual costs during the budget review and adoption process, and periodically must request additional funding from Council when actual costs exceed estimates.
Since 2017, Leave Time cash-out costs have ranged from $250K to $430K annually, currents costs exceed $330K.
Staff proposes using the Budget Variance Reserve as a funding source. Reserve Funds are replenished to target during the annual budgeting process.