To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Ordinance: Approving Changes of Appropriations for the Year 2015 First 4th Quarter Budget Amendment (Second Reading)
Body
________________________________________________________________________________
The Ordinance was approved on first reading on October 6, 2015 with a vote of 6 to 0 with no changes.
Executive Summary
The changes of expenditure appropriation in this proposed First 4th Quarter Budget Amendment includes several items which have been previously presented to Council and approved to date:
• Water and Wastewater Enterprise Revenue Refunding Bonds, $6,252,192, offset to a large degree by bond revenue also included in the accounting transaction
• Wolfensberger Pedestrian Bridge, $702,750, utilizing allowable 2016 trails funds from the Transportation Fund annual transfer
• Flood damage report, impacting the Water and Stormwater Funds, $500,000, partially offset by the recognition of deferred revenue, eligible for this purpose
• Golf Course Enterprise Revenue Refunding and Improvement Bonds, $5,289,982, also largely offset by bond revenue also included in the accounting transaction
Other significant items which have not yet been introduced to Council include the accommodation for additional resource needs within the Development Services Enterprise Fund, replacement of the Community Center roof, furniture and fixtures for the second phase at the Philip S. Miller Park amenities and funds to accommodate park drainage and amphitheater improvements.
(Attachment B) includes descriptions of all supplemental appropriation items within this request amounts as identified by departments.
Discussion
Total requested changes to appropriations referred to in (Attachment B) net to an increase in total expenditures for 2015 of $14,285,269. In terms of identified supplemental expenditure items, the more significant increases include items which are related to two bond refunding initiatives. The Water and Wastewater Enterprise Revenue Refunding Bonds and the Golf Course Enterprise Revenue Refunding and Improvement Bonds include revenue and expenditure transactions which require the full amounts be recorded for accounting purposes. Approximately $11.5 million of the total
supplemental appropriation amount includes the required expenditures be recorded, which are substantially offset by the recorded revenues in the affected funds.
Among the other larger items which have not yet been introduced to Council include the accommodation for additional resource needs within the Development Services Enterprise Fund for $543,657. This request for funds would allow for up to 8 additional staff positions through the end of the year to address demands related to increased development further explained in (Attachment D).
Also included is a request to increase the budget in the Community Center Fund by $324,988 to replace the roof. The current roof is 27 years old and when adverse weather occurs, the existing roof has leaked extensively, impacting operations and causing potential safety issues.
An amount of $400,000 is requested for additional park drainage and amphitheater improvements within the Philip S. Miller Park. Additions to the amphitheater such as higher electrical power requirements, canopy stage height increases, house lighting of the canopy, foundations and electrical conduits needed for productions would be accommodated within the requested funds. Higher than expected home building activity and related impact fee revenue is available to accommodate this request within the Parks & Recreation Capital Fund. Use of these funds also has no impact on the ability of the Town to construct the next neighborhood park, as planned. The Parks and Recreation Department has also included a request for $125,000 to accommodate fixture and furniture needs for the phase 2 amenities at the Philip S. Miller Park.
A listing of all requests for supplemental appropriations for the First 4th Quarter Budget Amendment of 2015, including written justification and specific costs is included in (Attachment B).
Budget Impact
As presented in (Attachment C), the Finance Department has ensured that funding is available through either anticipated revenues and/or fund balance, maintaining adequate reserves within each fund. A summary of the proposed total increase in 2015 expenditure appropriation changes by fund is shown in the following table:
|
General Fund |
$ 702,750 |
|
Parks & Recreation Capital Fund |
400,000 |
|
Water Fund |
6,608,892 |
|
Stormwater Fund |
250,000 |
|
Golf Course Fund |
5,314,982 |
|
Development Services Fund |
543,657 |
|
Community Center Fund |
464,988 |
|
TOTAL |
$ 14,285,269 |
Staff Recommendation
Staff recommends that Town Council approve the Ordinance on first reading, second reading is currently scheduled for October 20, 2015.
Proposed Motion
I move to Approve an Ordinance Approving Changes of Appropriations for the Year 2015 First 4th Quarter Budget Amendment, First Reading
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriation
Attachment C: Estimated Ending Funds Available for 2015
Attachment D: Enterprise Fund Staff Resource Request