TITLE
Recommendation to approve the Fiscal Year 2011 third quarter departmental and fund budget appropriation adjustments in accordance with existing City Council policy. (Citywide)
DISCUSSION
On September 14, 2010, the City Council adopted the Appropriations Ordinance governing the City’s Adopted Budget for Fiscal Year 2011 (FY 11). Periodically, changes in revenue or operating conditions require appropriation adjustments. For example, in certain cases these adjustments enable departments to expend recently awarded grant revenue for which there is no existing appropriation. In addition, changes for multi-year grants/projects are necessary to bring appropriations in line with final grant/project award amounts. In accordance with the City’s practice, these adjustments are presented quarterly to the City Council for consideration. Please see Attachment A for a Fund Balance Analysis of impacted City funds and Attachment B for a recap of FY 11 General Fund Expenditure Budget Adjustments.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on August 9, 2011.
TIMING CONSIDERATIONS
The following requests for adjustments to FY 11 departmental and fund appropriations are necessary to reflect changes in operating conditions. City Council action is requested on August 23, 2011 to enable the timely processing of payments.
FISCAL IMPACT
Airport
On October 19, 2010, City Council authorized the City Manager to execute documents for the sale of Senior Airport Revenue Bonds Series A and B to finance Phase 1 Terminal Improvements. An appropriation increase of $17,082,000 is needed for the remaining portion of the Airport's 2010 bond sale proceeds not previously appropriated by City Council action. Also, final debt service schedules reflected higher interest due than was budgeted, and thus an appropriation increase of $1,270,596 is needed for the underestimated portion of the debt service and the unbudgeted cost of issuance expense, both funded wi...
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