Report to Mayor and City Council
Tuesday, September 04, 2018
Consent
SUBJECT:
Title
FISCAL YEAR 2017-18 YEAR-END BUDGET AMENDMENTS AND CONTINUING APPROPRIATIONS (CITY COUNCIL AND HOUSING AUTHORITY)
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I. SUMMARY
At the end of each fiscal year, there are unspent appropriations due to incomplete projects. In some cases, the unspent expenditure budget needs to be carried forward to the next fiscal year, to provide funding for the completion of the project.
The primary purpose of this report is to request continuing appropriations for a variety of projects from every department. There is no fiscal impact associated with the request, as the budget will be reduced for one year and increased for the next. If the requests are approved, the estimated fund balances at June 30, 2019 will not change.
This report also requests one proposed year-end budget amendment to ensure budgetary compliance.
II. RECOMMENDATION
Recommendation
Waive further reading and adopt:
1. Resolution No. 18-124, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2017-18 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2018-19;
2. Resolution No. 18-125, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2018-19 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2017-18;
3. Resolution No. 18-15-CHA, A RESOLUTION OF THE BOARD OF THE CARSON HOUSING AUTHORITY AMENDING THE FISCAL YEAR 2017-18 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2018-19;
4. Resolution No. 18-16-CHA, A RESOLUTION OF THE BOARD OF THE CARSON HOUSING AUTHORITY AMENDING THE FISCAL YEAR 2018-19 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2017-18; and
5. Resolution No. 18-126, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2017-18 BUDGET FOR FISCAL YEAR-END COMPLIANCE.
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
Requests to Continue Appropriations from FY17-18 to FY18-19 for Incomplete Projects
Exhibit F to this report is the list of requests to carryover unused budget for incomplete projects. This includes projects funded from the operating budget and the capital budget. The list includes descriptions and justifications.
Staff is requesting a total of $1,117,337 to be carried forward in the General Fund, another $511,392 from restricted funds, and $18.7 million of Capital Improvement Plan (CIP) projects. The most significant CIP carryover requests include $9.4 million for the Carriage Crest storm water project to be completed in FY18-19; as well as grant funding of $4.1 million for bike lanes and pathways which require additional funding before the projects can be initiated.
Requests to Continue Appropriations from FY17-18 to FY18-19 for New Projects
Each department has FY17-18 budgetary savings, and recommends using a portion of the expected savings to fund new or urgent projects. Employee compensation is more than half of the City’s General Fund budget, and much of the FY17-18 budgetary savings is driven by staff vacancies. The requests to use these savings to fund new or urgent projects are also listed in Exhibit F.
FY17-18 Year-End Budget Amendments
The legal level of budgetary compliance is set at Fund and Department. For example, if actual expenditures were to exceed the Finance Department budget in the General Fund, the audited financial statements would include a non-compliance note disclosure.
Staff identified only one instance of budgetary non-compliance for FY17-18. The City Events fund has an accumulated fund balance of prior years’ funding (e.g. donations) that were not spent in prior years. During FY17-18, expenditures were made from the unspent prior years’ funding, which had not been appropriated for FY18-19. Staff requests a $40,000 housekeeping amendment in the City Events fund to ensure budgetary compliance, and allow for FY17-18 expenditures from prior years’ funding accumulated in the fund balance.
V. FISCAL IMPACT
There is no fiscal impact associated with the carryover requests. If approved, the budget will be reduced in FY17-18 and the budget will be increased in FY18-19; resulting in no change to the estimated ending fund balances at June 30, 2019.
The estimated fund balance in the City Events fund at June 30, 2018 is $113,638. If the $40,000 amendment is approved, the estimated fund balance will be reduced to $73,638; which is comprised entirely of prior years’ funding contributions.
VI. EXHIBITS
A. Resolution No. 18-124, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2017-18 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2018-19 (pages 4-6)
B. Resolution No. 18-125, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2018-19 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2017-18 (pages 7-9)
C. Resolution No. 18-15-CHA, A RESOLUTION OF THE BOARD OF THE CARSON HOUSING AUTHORITY AMENDING THE FISCAL YEAR 2017-18 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2018-19 (pages 10-11)
D. Resolution No. 18-16-CHA, A RESOLUTION OF THE BOARD OF THE CARSON HOUSING AUTHORITY AMENDING THE FISCAL YEAR 2018-19 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2017-18 (pages 12-13)
E. Resolution No. 18-126, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2017-18 BUDGET FOR FISCAL YEAR-END COMPLIANCE (pages 14-15)
F. List of Continuing Appropriation Requests (pages 16-23)
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Prepared by: Kathryn Downs, Finance Director