UP City Council OKs Ordinance To ‘Carry Over’ FY2020 Encumbrances
The University Park City Council this week approved an ordinance amending the fiscal year 2021 budget to “roll” a total of $658,115 from fiscal year 2020 encumbrances into the fiscal year 2021 budget.
Encumbrances are commitments to purchase specific goods or services, generally evidenced by an open and approved purchase order. They are budgeted, authorized transactions that have not concluded by year-end.
“This is a process that we do right after we adopt the budget where we take funds that what we call are encumbered from the prior year and roll them into the current budget. These are for things that we either didn’t get to or that straddled the year,” City Manager Robbie Corder said.
In other news, the city council:
- Approved CIGNA as the city’s stop loss vendor again for 2021. The city’s individual stop loss coverage is $110,000 per claimant and is provided by CIGNA. This means that once an individual claimant exceeds $110,000 in claims for the year, all future expenses are paid by the city’s stop loss provider. The city also has an aggregate stop loss at 125% of expected claims.
- Approved a payment of $69,006.02 to Tyler Technologies for New World Enterprise Resource Planning (ERP) software. City staff has used New World ERP software from Tyler Technologies for financial management, utility management, and human resources since 1995. The cost for the period of Nov. 1, 2020 to Oct. 31, 2021 represents an annual increase of 5%.
- Commemorated the retirement of fire captain Mark McAdams after more than 20 years of service to the city.
