COUNCIL COMMUNICATIONS
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Adopt Resolution No. 19-3276 Amending Resolution No. 18-3236 Transferring Budget Appropriations from One Fund, Department, or Division to Another for Fiscal Year 2018-19 (Jill Olsen)
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
Adopt a resolution to transfer budget appropriations from one fund, department, or division to another for Fiscal Year 2018-19.
BACKGROUND:
Since the adoption of the budget on June 26, 2018, the following items have been identified and require City Council approval of a budget amendment:
1. Wastewater currently has two vactor trucks. One of the trucks was purchased in Fiscal Year 2004-05 and has exceeded the typical useful life. The Division is in need of one replacement truck and an additional truck as a backup. This amendment reflects an increase of $878,000 to the Wastewater Fund’s budget and a corresponding decrease of $878,000 to the Capital Projects Funds.
2. The function of contract management is being transferred to the City Attorney’s office and an additional full-time position is necessary. The cost of the Contract Specialist position through the end of this fiscal year is estimated to be $30,000. The ongoing cost will be approximately $75,000 per year. This amendment reflects an increase of $30,000 to the City Attorney’s budget and a corresponding decrease of $30,000 (General Election Savings) from the City Clerk’s budget.
3. The fountain installed in Wheeler Park last fiscal year has caused an increase in electricity cost. Wheeler Park is part of Improvement District #4. Even though the cost is not significant, the District’s budget is too small to absorb the additional amount. This amendment reflects an increase of $4,000 to the Improvement District’s budget and a corresponding decrease of $4,000 to the Miscellaneous Grant Funds.
4. Project PR2070 Havasu 280 Infrastructure Construction is for street and utility improvements, and the cost is being split between multiple funds: Capital Projects Fund, Wastewater Fund, and Irrigation and Drainage District (IDD) Fund. A correction to the budget is needed to correct the allocation between the funds. This amendment reflects an increase of $739,000 to the Wastewater Fund, and a corresponding decrease of $739,000 to the Capital Projects Fund.
Even though a budget amendment is not required, as a reminder, staff reiterates that there was a use of $99,394 in Wastewater Fund contingency budget appropriation approved by Council on 9-11-18 for emergency work on the Sweetwater Force Main Break at Mulberry Avenue and SR 95. In addition, $141,612 in the General Fund contingency budget appropriation was approved by Council on 11-27-18 for a Carbon Monoxide Monitoring System upgrade.
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:
Resolution No. 19-3276
State Budget Schedule E - Amended - Expenditures/Expenses by Fund
State Budget Schedule F - Amended - Expenditures/Expenses by Department
SUGGESTED MOTION:Recommended Action
I move to adopt Resolution No. 19-3276 amending Resolution No. 18-3236, and approving the budget amendments listed on Schedules E and F for Fiscal Year 2018-19.