TO: Honorable Mayor and Council
FROM: Valerie Fenske, Administrative Services Director
SUBJECT:Title
Approve Fiscal Year 2013-14 Budget Amendment
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
As Fiscal Year 2013-14 is coming to an end, a few areas have been identified in which a budget amendment is necessary. These areas include the General Fund (City Manager - Human Resources/Risk Management), the RICO Fund, the Tourism / Economic Development Fund, and operating transfers between the Employee Benefit Trust Fund and the General Fund.
BACKGROUND:
During the year, it was necessary to hire a part-time clerical office aide in the Human Resources/Risk Management Division that was not originally included in the budget. Additionally, recruitment costs have exceeded the amounts that were projected in FY 2013-14. These additional expenses are causing the division to possibly exceed the FY 2013-14 budget. This amendment reflects an increase of $20,000 to the Human Resources/Risk Management budget in the General Fund and a corresponding reduction of $20,000 to the appropriation in the Capital Projects Funds.
The RICO Fund accounts for funds that are generated by law enforcement activities that result in asset forfeiture proceedings. These funds can be used to purchase items for the Police Department and City Attorney's office. The Fiscal Year 2013-14 budget included total estimated expenditures of $60,000, of which $48,000 was allocated to the Police Department and $12,000 to the City Attorney's office. The Police Department has identified more uses for RICO funds, therefore it is necessary to increase the amount allocated to the Police Department and decrease the amount allocated to the City Attorney. The net effect to the RICO Fund is zero, as seen on Schedule E, and Schedule F shows the reallocation from the City Attorney section to the Police Department section.
By resolution, revenues received from the 1% restaurant and bar tax and the 3% transient occupancy tax are forwarded to the Convention and Visitors Bureau and the Partnership for Economic Development. The Fiscal Year 2013-14 budget included estimated revenues of $1,600,000 and expenditures of $1,600,000 to reflect the receipt and transfer of these funds. Due to an increase in the amount of tax revenues anticipated to be received, it is necessary to increase the expenditure amount in the Tourism / Economic Development Fund. This amendment reflects an increase of $100,000 to the Tourism / Economic Development Fund with a corresponding reduction of $100,000 to the appropriation in the Capital Projects Funds.
The Lake Havasu City Employee Benefit Trust (EBT) Fund was programmed to be closed in Fiscal Year 2014-15, with the remaining fund balance to be transferred to the General Fund. The closure of this fund has been approved by the EBT board and will occur in Fiscal Year 2013-14. Schedule D has been amended to reflect this transfer.
COMMUNITY IMPACT:
N/A
FISCAL IMPACT:
This budget amendment does not affect the overall budget; rather, it is a shift of budget appropriation from one fund/department/division to another. Council will be approving the adjustment of budgeted expenditure levels and operating transfers of the affected funds as allowed by A.R.S. §42-17106.
ATTACHMENTS:
Schedule D - Amended - Summary by Fund Type of Other Financing Sources/<Uses> and Interfund Transfers
Schedule E - Amended - Summary by Department of Expenditures/Expenses Within Each Fund Type
Schedule F - Amended - Summary by Department of Expenditures/Expenses
SUGGESTED MOTION:Recommended Action
I move to approve a budget amendment for Fiscal Year 2013-14 as listed on the attached schedules D, E, and F.