PRESENTER: Presenter
Karrie Cook, Budget Manager
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SUBJECT: Title
Approval of FY 2024 budget amendments for the General Fund, Transit Fund, Debt Service Fund and Fleet Fund.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
General Fund Amendment -Per the City’s financial policy, if an overall department budget needs to be increased or decreased, a budget amendment is required via City Council approval. Due to higher than anticipated employee expenditures, end-of-year accruals, increased service and equipment costs, and unanticipated operating expenditures, budget amendments are required in the several departments in the General Fund Budget. Many of these amendments are consistent with the FY 2024 projections developed during the most recent budget process. Staff recommends utilizing savings generated by other General Fund departments to support this amendment, so there will be no direct financial impact to the General Fund. The following General Fund budget amendments are recommended for City Council consideration.
Transit Fund Amendment - A budget amendment to supplement the Transit Fund is required due to employee expenditures being charged to the fund in FY 2024. During the fiscal year, staff established the Transit Fund to track the financials for the City’s newly established Transit District. Salary costs from the Transit Services Coordinator are being charged to this fund. At this time, ARPA funds support salary expenses, therefore there is sufficient fund balance to cover this amendment.
Fleet Services Fund Amendment - A budget amendment to supplement the operating category is required due to higher than anticipated maintenance costs in FY 2024. An increase in revenues due to additional contributions from City departments will offset the increase in expenditures, therefore, sufficient funds are available to support this amendment.
Debt Service Fund Amendment - A budget amendment to supplement the Debt Service Fund is required due to unbudgeted issuance costs in FY 2024 related to the 2023 GO Bond Refunding issuance. The fund contains offsetting revenue in Bond Issuance Revenue and Premium on Debt Sold Revenue related to the same issuance, resulting in a net neutral effect to the fund balance, therefore, sufficient funds are available to support this amendment.
ISSUE:
N/A
FISCAL IMPACT:
The General Fund amendment does not result in a fiscal impact and does affect the General Fund fund balance, therefore sufficient funds are available in the General Fund to support the amendment. The Transit Fund and Fleet Fund have sufficient fund balance and offsetting revenues to support the amendments described above, therefore sufficient funds are available to support those amendments.
Recommendation
RECOMMENDATION:
Staff recommends approval of all budget amendments for FY 2024.