Presenter/Contact
Presenter
Greg Gutierrez, Financial Analyst
Contact Info
(830) 221-4398 - ggutierrez@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of a budget amendment in the 2013 Certificates of Obligation Fund, General Fund and a budget transfer in the Golf Fund.
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BACKGROUND / RATIONALE:
2013 Certificates of Obligation - A budget amendment is necessary to more reflect the transportation Enhancements Project for the Westside Pedestrian Improvements. In February 2016, City Council approved a resolution for the City to enter into a Local Project Advance Funding Agreement (LPAFA) with the Texas Department of Transportation (TXDOT) for the development, design, and construction of sidewalk improvements, pedestrian ramps, crosswalks, and signage in various locations near Lone Star Elementary. As part of the LPAFA, which is written as a reimbursement agreement, the cost participation breakdown requires that the city pay for all construction cost up-front but shall be able to submit for reimbursement of funds up to 80% of the total construction cost. To accurately account for the full project cost a budget amendment is needed. There is no direct financial impact from the increase, as these funds will be fully reimbursed.
Budget Amendment - 2013 Certificates of Obligation
Increase: Expenditures - $180,507
General Fund - A budget amendment is necessary in the General Fund within the capital allocation for the Police Department and Planning Division. At the adoption of the FY 2017-18 Budget, the extent of the repairs and improvements to the Police Department building was still unknown. While majority of the expenditures are budgeted in the capital improvement funds, this amendment establishes the budget authority for the unbudgeted portion.
The Planning Division recently replaced a plotter. The original plotter was too expensive to repair and. This type of equipment is eligible to be replaced with the recently approved technology development fees; therefore, there is an offsetting revenue to support this unbudgeted expenditure. This amendment established the budget authority to support this unbudgeted expenditure.
Budget Amendment - General Fund
Increase: Police Department Capital Expenditures - $280,000
Increase: Planning and Community Development Capital Expenditures - $17,280
Golf Fund - A budget transfer is necessary in the Golf fund within the operating expenditures allocation to cover the remaining merchandise expenditures through the end of the fiscal year. The additional purchases of merchandise have an offsetting impact to revenues. Savings in the employee allocation are available to support the transfer as the golf course has experienced multiple vacancies throughout the year.
Budget Transfer - Golf Fund
From: Employee Expenditures $34,000
To: Operating Expenditures $34,000
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
Strategic Priorities: |
Maintain fiscal stability of City operations |
FISCAL IMPACT:
There is no fiscal impact to the 2013 Certificates of Obligation Fund as the additional funds will be fully reimbursed. The amendment will support a portion of the 80% of construction costs to be submitted for reimbursement.
The General Fund will increase by $297,280, however staff currently projects that total General Fund Expenditures will still be below budget overall by the end of the fiscal year; therefore, there is no direct impact to fund balance.
There are allocated funds in the Golf Course employee expenditure allocation that are not projected to be spent before the end of the fiscal year, which is why a transfer is recommended as opposed to a budget amendment.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval of budget transfer and amendment in the FY 2017-18 Golf Fund and 2013 Certificates of Obligation.