Report to Mayor and City Council
Tuesday, November 05, 2019
Discussion
SUBJECT:
Title
FISCAL YEAR 2018-19 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, 2020 will not change.
II. RECOMMENDATION
Recommendation
WAIVE further reading and ADOPT:
1. Resolution No. 19-173, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2018-19 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2019-20;
2. Resolution No. 19-174, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2019-20 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2018-19;
3. Resolution No. 19-10-CHA, A RESOLUTION OF THE BOARD OF THE CARSON HOUSING AUTHORITY AMENDING THE FISCAL YEAR 2018-19 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2019-20;
4. Resolution No. 19-11-CHA, A RESOLUTION OF THE BOARD OF THE CARSON HOUSING AUTHORITY AMENDING THE FISCAL YEAR 2019-20 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2018-19;
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
Requests to Continue Appropriations from FY18-19 to FY19-20 for Incomplete Projects
Resolution No. 19-173 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 $6,815,617 to be carried forward in the General Fund, another $892,165 from restricted funds, and $22 million of Capital Improvement Plan (CIP) projects. The most significant CIP carryover requests include $7.6 million for the Carriage Crest storm water project to be completed in FY19-20; as well as grant funding of $2.9 million for bike lanes and pathways which require additional funding before the projects can be initiated.
Requests to Continue Appropriations from FY18-19 to FY19-20 for New Projects
Each department has FY18-19 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 FY18-19 budgetary savings is driven by staff vacancies. The requests to use these savings to fund new or urgent projects are also listed in Resolution No. 19-173.
FY18-19 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.
V. FISCAL IMPACT
There is no fiscal impact associated with the carryover requests. If approved, the budget will be reduced in FY18-19 and the budget will be increased in FY19-20; resulting in no change to the estimated ending fund balances at June 30, 2020.
VI. EXHIBITS
1. Resolution No. 19-173 (pages 4-7)
2. Resolution No. 19-174 (pages 8-11)
3. Resolution No. 19-10-CHA (pages 12-13)
4. Resolution No. 19-11-CHA (pages 14-15)
Prepared by: Tarik Rahmani, Finance Director