Administrative Services
Town of Nags Head
PO Box 99
Nags Head NC 27959
www.townofnagshead.net
T elephone (252) 441-5508
Fax (252) 441-4680
MEMORANDUM
To:
Mayor and Board of Commissioners
From:
Administrative Services
Date:
May 25, 2004
Subject:
Budget Adjustment #11 for FY 2003-2004
Attached for your consideration is Budget Adjustment #11 that consists of thirty-one requests.
General Fund
The first request increases anticipated revenues from FEMA Reimbursement by $485,814 with increases
to the general fund department line items for Hurricane Isabel expenditures incurred or expended to
date. Included are transfers to P/W Facilities Maintenance of $485,814 primarily for the beach access
replacement berm project. In addition, anticipated revenues from Land Transfer Tax are increased by
$34,133 with a corresponding increase to P/W Facilities Maintenance to fund the additional costs for the
use of TREX materials for half of the accesses.
The second request transfers funds budgeted in CIP in the amount of $2,500 to Administrative Services
Other Supplies for additional costs associated with the computer room upgrade. In addition, funds in
the amount of $9,019 are transferred to P/W Facilities L/P Principal for the initial year of debt service for
the gas/diesel fume capture at Station 20 and Public Works. Funds for the gas/diesel fume capture at
Station 16 in the amount of $43,878 are funded by a FEMA Fire Grant in the amount of $39,490 with the
cash match transferred from CIP in the amount of $4,388. Finally, funds in the amount of $13,664
which were not needed for this fiscal years CIP projects are transferred to the Capital Reserve Fund for
use in subsequent years.
The third request increases anticipated use of Appropriated Fund Balance by $2,196 with a
corresponding increase to P/W Facilities Maintenance/Repair Buildings for the additional costs incurred
for repairs to the former OBMC building for expenditures incurred or encumbered to date.
The fourth request increases anticipated use of Appropriated Fund Balance by $8,250 with a
corresponding increase to P/W Facilities Contracted Services for removing the remains of a house in
South Nags Head at Nansemond to facilitate the continuation of the emergency berm project.
The fifth request increases anticipated revenues from Insurance Proceeds by $1,384 with increases to
NHVFD Department Supplies in the amount of $450 and to Police Maintenance/Repair Vehicles in the
amount of $934 for damages incurred to weather equipment at Station 20 and from an accident
involving a Police vehicle.
The sixth request increases anticipated revenues from Loan Proceeds by $41,000 with a corresponding
increase to P/W Facilities Capital Outlay Other for the full costs of the gas/diesel fume capture systems
at Station 20 and Public Works.
The seventh request increases anticipated revenues from the Sale of Roll offs by $11,745 with a
corresponding increase in P/W Administration Purchases for Resale for the purchase and subsequent
resale of roll offs.
The eighth request allocates Career Development funds of $4,853 from Administrative Services to
various general fund departments for the training and travel costs incurred this fiscal year. Included are
transfers to Administrative Services of $163, to P/W Administration of $161, to P/W Facilities of $92, to
Police of $3,674, and to Fire of $828. In addition, Animal Control is reduced by $65 for an earlier
transfer that was not needed.
The ninth request transfers $4,330 from Governing Body to Administration from funds not needed for
retirement buyback to Salary and benefit line items to provide sufficient funding for the remaining fiscal
year and to fund the part-time salary and benefits for the intern position for the summer. Included are
transfers to Salaries of $3,000, Salaries Part-time $800, FICA $292, Retirement $148, and to 401K of
$90.
The tenth request transfers funds within Administration to fund existing shortfalls and to provide
sufficient funding for the remainder of the fiscal year. Anticipated revenues from 1/2 Sales Tax (44) are
increased by $3,000 to provide additional funding. Included are transfers of $200 from Training and
$100 from Telephone with increases to expenditure lines of $1,900 to Travel, $200 to Postage, $500 to
Advertising, and $700 to Department Supplies.
The eleventh request increases anticipated revenues from 1/2 Sales Tax (44) by $7,500 with a
corresponding increase to Legal Professional Fees to provide sufficient funding for legal services for the
remainder of the fiscal year.
The twelfth request transfers funds within Administrative Services to cover existing shortfalls and to
provide sufficient funding for the remaining fiscal year. Included are transfers from Training in the
amount of $1,000 and from Telephone in the amount of $1,500 with increases to Travel in the amount
of $2,000 and to Equipment Rental in the amount of $500.
The thirteenth request transfers funds within Planning to cover existing shortfalls and to provide
sufficient funding for the remaining fiscal year. Included are transfers from Professional Fees in the
amount of $1,700 and from Telephone in the amount of $800 with increases to Training of $500, to
Travel of $500, to Postage of $700, and to Advertising of $800.
The fourteenth request transfers funds within P/W Administration to cover existing shortfalls and to
provide sufficient funding for the remaining fiscal year. Included are transfers from Postage in the
amount of $200 and from Advertising in the amount of $500 with increases to Travel in the amount of
$563 and to Department Supplies in the amount of $137.
The fifteenth request transfers $5,000 within P/W Facilities from Department Supplies to Contracted
Services to provide sufficient funding for the remainder of the fiscal year. In addition, anticipated
revenues from 1/2 Sales Tax (44) are increased by $3,223 to provide funding for soil borings for the
SNH Police Fire facility in P/W Facilities Capital Outlay Buildings in the amount of $2,668 and to fund
additional legal fees in P/W Facilities Land in the amount of $555 related to the acquisition and recording
of the former Catfish property.
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The sixteenth request transfers funds within P/W Sanitation to cover existing shortfalls and to provide
sufficient funding for the remaining fiscal year. Included are transfers from Holiday Pay in the amount of
$1,400, Advertising in the amount of $1,350, Maintenance/Repair Equipment in the amount of $640,
Uniforms in the amount of $339, Contracted Services in the amount of $452, and Recycling in the
amount of $2,002 with increases to Overtime of $1,400 and Maintenance/Repair Vehicles of $4,783.
The seventeenth request transfers funds within Police to cover existing shortfalls and to provide
sufficient funding for the remainder of the fiscal year. Included are transfers from Salaries of $3,000,
Travel of $1,000, Department Supplies of $2,000, Maintenance/Repair Vehicles of $1,000, and from
Professional Fees of $2,500 with increases to Overtime of $3,000, to Automotive Supplies of $5,000, and
to Uniforms of $1,500.
The eighteenth request increases anticipated funding from Governor’s Crime Commission Grant in the
amount of $7,826 for partial funding of the acquisition costs of audio/video magistrate conferencing
equipment in the amount of $11,053 in Police. The Town’s cash match is funded by a transfer within
Police from Department Supplies in the amount of $3,227.
The nineteenth request transfers funds within Animal Control to cover existing shortfalls and to provide
sufficient funding for the remaining fiscal year. Included are transfers from Department Supplies in the
amount of $360 with increases to Training of $35, to Travel of $315, and to Dues & Subscriptions of
$10.
The twentieth request increases anticipated revenues from Drug Forfeiture Funds by $750 with a
corresponding increase in Drug Forfeiture Professional Fees to fund an existing shortfall in funding.
The twenty-first request transfers funds within Fire to cover existing shortfalls and to provide sufficient
funding for the remaining fiscal year and to begin equipping Engine 161 in anticipation of the move to
the SNH Police/Fire Facility. Additional funds are transferred from available funds in NHVFD in the
amount of $9,000 for the same reason with $4,000 from Maintenance/Repair Equipment and $5,000
from Professional Fees to increase Fire Department Supplies. Included within Fire are transfers of
$3,800 from Travel, $5,000 from Maintenance/Repair Equipment, $3,000 from Uniforms, $1,500 from
Professional Fees, $1,500 from Dues & Subscriptions, and $200 from Advertising with increases to
Maintenance/Repair Vehicles of $3,000, to Training of $700, to Safety Training of $300, and to
Department Supplies of $11,000.
The twenty-second request adjusts both the revenue and the expenditure line items for the NCLM
Property/Liability Grant to combine these with the NCLM Safety Grant as one grant instead of as
separate grants. This request increases anticipated revenues from the Safety Grant by $1,000 and
decreases anticipated revenues from the Property/Liability Grant by the same amount. Similarly, the
expenditure line items within Fire are increased and decreased by the same amounts.
The twenty-third request transfers funds within Ocean Rescue to cover existing shortfalls and to provide
sufficient funding for the remaining fiscal year. Included are transfers from Training of $250, from
Travel of $400, from Postage of $200, from Advertising of $100, and from Dues & Subscriptions of $400
with an increase to Department Supplies in the amount of $1,350.
Capital Reserve Fund
The twenty-fourth request increases anticipated revenues from Appropriated F/B from Police Facility
Fees by $6,193 with a corresponding increase to Contribution to General Fund for additional costs of
purchasing a 4WD SUV versus the costs of the budgeted Crown Victoria. The use of these funds was
approved previously by the Board. In addition, to reduce anticipated revenues from Contribution from
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General Fund with a corresponding decrease in Contribution to F/B as required for financial statement
presentation of Capital Reserve Fund budget.
Water Fund
The twenty-fifth request transfers funds within Septic Health from Department Supplies to Postage in the
amount of $800 to provide sufficient funding for the remaining fiscal year.
The twenty-sixth request increases anticipated revenues from Loan Proceeds in the amount of $75,000
with a corresponding increase in Water Operations Capital Outlay Equipment in the amount of $48,750
and Fresh Pond Capital Outlay Equipment in the amount of $26,250 for the acquisition of SCADA
equipment. Funds were transferred previously for the initial year of debt service from CIP to each
department for this project.
The twenty-seventh request reverses an earlier budget adjustment which increased anticipated revenues
from Loan Proceeds with corresponding increases to Capital for the costs of the new water tank in Water
Operations and replacement chemical storage in Fresh Pond. Neither one of these projects will be
contracted during this fiscal year so this transfer request reverses the earlier adjustment. Anticipated
revenues from Loan Proceeds are reduced by $1,246,272 with a corresponding decrease to Water
Operations Capital Outlay Other and by $118,042 with a corresponding decrease to Fresh Pond Capital
Outlay Other. In addition funds originally transferred from CIP to L/P Principal in each of the
departments for the initial year of debt service are transferred back to Appropriated R/E for use in a
another year instead in the amounts of $150,433 from Water Operations L/P Principal and $26,202 from
Fresh Pond L/P Principal. Finally, each project has incurred engineering costs related to the projects and
these costs are funded by a transfer temporarily from Appropriated Retained Earnings until next year
when funds are borrowed for the projects in their entirety. Anticipated revenues from Appropriated
Retained Earnings are increased by $38,300 with increases to Capital Outlay Other in Water Operations
and Fresh Pond of $20,300 and $18,0000, respectively.
The twenty-eighth request transfers funds within Water Operations to cover existing shortfalls and to
provide sufficient funding for the remaining fiscal year. Included are transfers from Maintenance/Repair
Buildings of $2,500 and from Maintenance/Repair Equipment of $1,000 with increases to Department
Supplies of $2,500 and to Other Supplies of $1,000. In addition, anticipated revenues from Appropriated
Retained Earnings are increased by $65,000 with a corresponding increase to Purchases for Resale to
provide funding for the increase in the wholesale water rate by 8% effective January 1, 2004 and the
payment of $30,263 for the shortfall in the rate prior to that time.
The twenty-ninth request increases Contribution from Nags Head Leasing by $772,919 with a
corresponding increase to Water Operations Capital Outlay Equipment for the purchase of the SNH water
tank from Nags Head Leasing at net book value and the return of the net proceeds to the Water Fund.
The thirtieth request transfers funds within Water Distribution to cover existing shortfalls and to provide
adequate funding for the remaining fiscal year. Included are transfers from Other Supplies in the
amount of $3,000 and from Telephone in the amount of $200 with increases to Maintenance/Repair
Other of $3,000 and to Dues & Subscriptions of $300.
Nags Head Leasing
The thirty-first request increases anticipated revenues from Sale of Fixed Assets by $772,919 with a
corresponding increase to Contribution to Water Fund for the sale of the SNH water tank to the Water
Fund and the return of the net proceeds.
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TOWN OF NAGS HEAD
BUDGET ORDINANCE
FISCAL YEAR 2003-04
BE IT ORDAINED by the Board of Commissioners of the Town of Nags Head, North Carolina, meeting in session this the 2nd
day of June 2004, that the budget ordinance adopted on June 18, 2003, effective July 1, 2003, as amended August 6, 2003,
September 3, 2003, October 1, 2003, November 5, 2003, December 3, 2003, January 7, 2004, and February 4, 2004, March 3,
2004, April 7, 2004, and May 5, 2004, is hereby further amended to read as follows:
SECTION 1, GENERAL FUND
Revenues Anticipated
1.
2.
3.
Taxes
Current Year Ad Valorem Taxes
Prior Year Taxes
Penalties and Interest
Sales Tax (1/2%) (40)
Sales Tax (1/2%) (42)
Sales Tax (1/2%) (44)
Local Option Sales Tax (1%)
Occupancy Tax
Land Transfer Tax
$ 3,350,316
15,000
10,000
176,543
170,713
229,510
877,045
1,552,514
730,173
TOTAL TAXES
$ 7,111,814
LICENSES & PERMITS
Privilege Licenses
Beach Driving Permits
Building Permits
CAMA Permits
Review Fees
Automobile Licenses
$
86,500
12,500
325,000
10,000
55,000
150
TOTAL LICENSE & PERMITS
$ 489,150
INTERGOVERNMENTAL REVENUES
Federal:
FEMA Reimbursement
FEMA Fire Grant
$
6,515,663
39,490
State:
Utility Franchise Tax
Telecommunications Tax
Beer and Wine Tax
State Street Aid Allocation
Court Fees
Wellness Grant
NC CJIN Grant
NCLM Grants
GHSP Grants
GCC Grants
NC Forest Service Grant
240,000
30,000
10,000
121,375
5,000
1,750
6,839
3,500
27,580
7,826
26,000
Contributions from Water Fund
Contributions from Other Governments
500,000
132,356
Local:
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Contributions from Capital Reserve Fund
OBVB Grant – Hollowell Street Access
468,039
9,000
TOTAL INTERGOVERNMENTAL
4.
$ 8,144,418
MISCELLANEOUS REVENUES
Investment Earnings
Sale of Fixed Assets
ABC Distributions
Mixed Drink Surcharge
Dumpster Sales
Automated Cart Sales
Facilities Fees
Rents (YMCA pass-through)
Pond Island Street Assessment
Loan Proceeds
All Other Revenues
$ 210,000
23,000
11,000
50,000
27,070
34,400
125,000
803,820
1,498
480,435
66,781
TOTAL MISCELLANEOUS REVENUES
$ 1,833,004
APPROPRIATION - FUND BALANCE
$ 1,070,590
TOTAL GENERAL FUND REVENUES
$ 18,648,976
Expenditures Authorized by Department
Governing Body
Special Projects
Administration
Legal Services
Administrative Services
Planning and Development
Public Works - Administration
Maintenance Garage
Facilities Maintenance
Sanitation
Solid Waste Disposal
State Street Aid
Police
Drug Forfeiture
Animal Control
Fire
Fire(Volunteers)
Ocean Rescue
Transfer to Capital Reserve Fund
Contingency
Capital Improvements Plan
$
293,944
803,820
381,380
60,450
1,517,800
814,888
970,651
225,672
7,524,613
1,233,353
587,327
15,000
1,941,179
1.204
75,135
1,309,685
41,622
614,715
236,538
0
0
TOTAL GENERAL FUND EXPENDITURES
$18,648,976
SECTION II, WATER FUND
Revenues Anticipated
Charges for Utilities
Water Sales to Regional System
Taps/Connection Fees
$2,083,132
84,435
40,000
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Reconnection Fees
Interest on Investment
Rents
Penalties and Interest
Septic Loan Repayments
FEMA Reimbursement
Miscellaneous Revenues
Loan Proceeds
Contribution from NH Leasing
Appropriated Retained Earnings
10,000
30,000
63,262
25,000
20,000
34,193
3,450
91,180
772,919
325,258
TOTAL WATER FUND REVENUES
$ 3,582,829
Expenditures Authorized
Administration
Septic Health
Operations
Fresh Pond
Distribution
Contribution to General Fund
Contingency
CIP
$
TOTAL WATER FUND EXPENDITURES
104,994
416,627
1,883,448
175,556
467,848
500,000
34,156
200
$ 3,582,829
SECTION III, NAGS HEAD LEASING CORPORATION
Revenues Anticipated
TOTAL NAGS HEAD LEASING REVENUES
$ 772,919
Expenditures Authorized
TOTAL NAGS HEAD LEASING EXPENDITURES
$ 772,919
SECTION IV, CAPITAL RESERVE FUND
Revenues Anticipated
Appropriations/Admin. FF
Appropriations/Fire. FF
Appropriations/Police FF
Appropriations/Sanitation FF
Appropriations/Recreation FF
Appropriations/Municipal Complex Debt
Appropriations/Erosion Abatement
Appropriations/SNH Fire/Police Facility
Appropriations/TWEACR
TOTAL CAPITAL RESERVE FUND REVENUES
$ 62,010
40,592
60,601
50,999
42,000
66,526
30,000
115,000
311
$ 468,039
Expenditures Authorized
Contributions to General Fund
$ 427,447
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Repayment of Interfund Debt to General Fund
40,592
TOTAL CAPITAL RESERVE FUND EXPENDITURES
TOTAL BUDGET FISCAL YEAR 2003-2004
$ 468,039
$ 23,472,763
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SECTION V, TAX RATE ESTABLISHED
A tax rate of Thirty-seven and eight-tenths ($.378) cents per hundred dollar valuation is hereby levied on all real estate and
personal property in the Town of Nags Head as of January 1, 2003. The estimated valuation of said property is Eight Hundred
Ninety Nine Million, Eight Hundred Twenty-Four Thousand, and Four Hundred Dollars ($899,824,400). The estimated collection
rate of Ninety-Eight and One-Half Percent (98.50%) is based on the collection rate for the Fiscal Year ended June 30, 2002.
SECTION VI, SPECIAL AUTHORIZATION - BUDGET OFFICER
The Budget Officer shall be authorized to reallocate departmental appropriations among the various objects of expenditures as
(s)he believes necessary. Such changes shall be reported to the Finance Officer immediately, and to the Governing Body at the
next regular meeting or on the next succeeding monthly budget transfer report.
The Budget Officer shall be authorized to make interdepartmental transfers, in the same fund, not to exceed 10% of the
appropriated monies for the department whose allocation is reduced. Notation of all such transfers shall be made to the Board of
Commissioners at the next regular meeting or on the next succeeding monthly budget transfer report.
SECTION VII, RESTRICTION - BUDGET OFFICER
The use of any contingency appropriations shall be accomplished only with prior authorization from the Board of Commissioners.
No salary increases, beyond those set forth in the budget document may be made without Board approval.
The use of appropriations established for Capital Reserve may be accomplished only with the approval of the Board.
Interfund Transfers, not established in the budget document, may be accomplished only with prior authorization from the Board.
SECTION VIII, UTILIZATION OF BUDGET AND BUDGET ORDINANCE
This Ordinance and the Budget Document shall be the basis of the financial plan for the Town of Nags Head, North Carolina
Municipal Government during the 2003-2004 Fiscal Year. The Budget Officer shall administer the Budget and (s)he shall insure
that operating officials are provided guidance and sufficient details to implement their appropriate portion of the Budget. The
Accounting Section shall establish records which are in accordance with the Budget and this Ordinance and the appropriate
statutes of the State of North Carolina.
ADOPTED THIS 2ND DAY OF JUNE, 2004
ROBERT W. MULLER, MAYOR
ATTEST:
Carolyn F. Morris, Town Clerk
Motion to Adopt by Commissioner
Motion Seconded by Commissioner
Vote:
Ayes
Noes
Recorded in Minute Book
, Page
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