MILTON, Ga. — With higher revenues than expenditures last year, city officials are considering the use of excess reserves for one-time capital projects.
The proposed budget amendments include a $5.3 million transfer out of the general fund to the pay-as-you-go program in the capital projects fund.
Deputy City Manager Bernadette Harvill began her presentation on budget amendments March 18 with a summary of the general fund budget, which is used for day-to-day operations.
The City Council approved the 2024 budget at a Sept. 18 meeting, culminating a months-long public process. Milton’s fiscal year runs from Oct. 1 to Sept. 30.
Milton code requires the city to maintain an unassigned fund balance equal to 25 percent of the prior year’s revenues, Harvill said.
Also, the city’s budgetary policies require fund balance exceeding required reserves to be spent on nonrecurring expenditures.
“The end of year fund balance for fiscal year 2023 was higher than anticipated, as a result of Milton’s conservative budgeting approach,” Harvill said. “The main drivers of revenue coming in higher than anticipated last year include interest rates increasing and remaining higher than expected.”
Because of higher rates and interest earned on idle funds, city officials estimate a $1 million increase to investment income this year.
Mayor Peyton Jamison asked where reserves have been invested, and if state guidelines allow investment in longer duration funds.
Harvill said interest is earned on two city accounts, one through a pooled investment fund with the state and the other in a money market account.
She also said state regulations constrict how the city can invest its reserves.
Harvill said revenues related to property tax collections and building permits are lower than anticipated, which slightly offsets revenue increases in other areas.
Increases to…
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