Item Description:
title
Authorize supplemental appropriations and contingency transfers to amend the 2025 budget
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Resolution:
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BE IT RESOLVED, that the 2025 budget for the Hennepin Health department be increased by a revenue-supported (self-balancing) supplemental appropriation of $95,000,000, as identified by item 1 in Schedule 1, as on file with the Clerk of the Board; and
BE IT FURTHER RESOLVED, that the 2025 budget be amended by a reappropriation of unspent prior year funds (supplemental appropriations using fund balance from Fleet Services, Other Employee Benefits, Employee Health Plan, Transportation Sales Tax, and Ballpark Sales Tax) totaling $8,210,000, as identified by items 2-6 in Schedule 1; and
BE IT FURTHER RESOLVED, that the 2025 budget be amended by authorized contingency transfers totaling $981,000 as identified by items 7-9 in Schedule 1; and
BE IT FURTHER RESOLVED, that the 2025 revenue and expenditure budgets for two departments be reduced, as identified by items 10-11 in Schedule 1, in order to standardize the county’s accounting and budget practices; and
BE IT FURTHER RESOLVED, that capital project 1003245: HCGC Courtroom Jury Reconfiguration transfer available bonding authority to capital project 1006393: IT Community Connectivity 2021-2025 to address increased costs for fiber installation projects, with no change to the overall budget authority in the CIP 2025-2029.
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Background:
The Office of Budget and Finance has reviewed the status of 2025 departmental expenditures relative to approved appropriations. Schedule 1 shows the details of departments that exceeded their authorized expenditure level and require budget adjustments.
The Board considered and approved several technical adjustments to the 2026 budget during the annual budget process. This resolution includes two technical adjustments for the same purpose, but the adjustments impact the 2025 budget. These technical adjustments reflect a consistent application of the county’s accounting and budgetary practices and do not impact the departments’ budgeted use of property tax or the county-wide budgeted use of property-tax for 2025 or 2026.
The capital budget adjustment is transferring unused bonding authority from the completed HCGC Courtroom Jury Reconfiguration (CP 1003245) project to the IT Community Connectivity 2021-2025 (CP 1006393) project. Once this transfer has been made, both projects will be balanced and closed.
The IT Community Connectivity program has partnered with Public Works on a number of large-scale fiber installation projects including the County’s Advanced Transportation Management System (ATMS) as well as fiber infrastructure projects along several Metro Transit corridors. Due to the scale of these initiatives, cost increases for materials and labor drew the IT Community Connectivity project over budget. Now that these larger projects have been completed, the true cost of the work is known, and the appropriate amount of funding can be applied to the IT Community Connectivity project. Prior bonding authority will be taken from the HCGC Jury Reconfiguration project, as it has been identified as complete and is currently going through the project closeout process.
recommendation
Recommendation from County Administrator: Recommend Approval