The City of South River budget for the fiscal year ended June 30, 2024, included an appropriation for the City in the amount of $8,900,000 and estimated revenue $9,000,000. During the month of July 2024, the following transactions occurred (in summary): Purchase orders were issued in the amount of $5,000,000. Of the $5,000,000 in purchase orders, $4,800,000 were filled, with invoices amounting to $4,500,000. Salaries was encumbered and paid for the amount of $2,000,000. A budget appropriations reduction in the amount of $1,500,000 was approved by the city council During fiscal 2024, the town levied property taxes of $8,000,000, of which it collected $7,000,000 prior to June 30, 2024, and $200,000 over each of the next five months. The Mayor wants to build a AI Lab by June 30, 20204. The AI Lab cost is estimated at $500,000. How should you advice the Mayor? Great idea and we have $500,000 unencumbranced available to spend Great idea and we have $700,000 unencumbranced available to spend Great idea but we don't have $700,000 unencumbranced available to spend Great idea but we don't have $500,000 unencumbranced available to spend