| ITEM #: 7. DATE: 08/31/2026 AI #:3409 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVAL OF BUDGET AMENDMENTS AND RELATED EXPENDITURE AUTHORITY |
| STAFF PRESENTER(S): | Ryan Bittle, Deputy Finance Director |
SUMMARY
Budget amendment and expenditure authority requests are presented to Council on an as-needed basis throughout the year to remain in compliance with both city policy and state statute. These requests provide transparency behind adjustments needed to deliver the programs and initiatives included as part of the city's adopted budget. All requests have been previously reviewed by city leadership, ensuring the availability of financial resources and alignment with the goals and objectives of the city's financial policy.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Approval of budget amendments and related expenditure authority (administrative award) for expenditures exceeding $500,000. (Ryan Bittle, Deputy Finance Director)
FISCAL IMPACT
Details surrounding the requests are outlined in the staff analysis section below as well as summarized in Attachment A. The citywide budget total remains unchanged within the Adopted State Expenditure Limitation.
BACKGROUND AND PREVIOUS ACTIONS
Budget amendments requiring City Council approval are presented as necessary throughout the fiscal year. The Fiscal Year (FY) 2027 expenditure limitation budget and FY2027 Expenditures for Administrative Award (Expenditure Authority) were both adopted on June 8, 2026.
STAFF ANALYSIS
Budget amendments are permitted by Arizona Revised Statute 42-17106(B), which provides authorization for cities and towns to exceed expenditures in a budget item after final adoption of a city/town budget by moving appropriations between budget items. All budget amendments are completed within city policy established by Resolution 2022-2256.
Attachment A Reference:
1. The city may from time to time enter into Development Agreements, most commonly as a mechanism to stimulate economic activity within the city. Those agreements typically involve a financial component tied to some development related performance measure. The city budgets for these obligations each year as part of the annual budget process based on an assumed level of performance by the other party. Budgets for these agreements tend to be conservative in nature as a way to optimize operational flexibility for the upcoming year. This means it's common to see amendments being brought to Council related to Development Agreements where financial obligations exceed budget. When these situations arise, the inference is the city has brought in sufficient financial resources above the budgeted level of performance, providing the ability to cover these increased obligations from the increased revenue generated. The agreement currently being referenced requires the repayment of Fire Impact fees and requires an additional $160,000 to be paid based on development activity during FY2026.
2. In an effort to more easily report on the financial standing of our Ballpark operations and Ballpark Capital Expenditure program, we're reallocating Asset Management dollars that have historically resided in our Facilities Asset Management Plan to the Ballpark Fund Asset Management plan and Capital Expenditure Program respectively. This request does not require additional funding, only moving already budgeted dollars between funds.
3. We're requesting $500,000 to expedite the timing of our next scheduled Facilities Master Plan update from FY2028 to FY2027. Doing so will allow the city to leverage the information gathered for other city initiatives that involve space planning and/or potential capital improvement projects (CIP). In addition, we're requesting Council also approve the related expenditure authority for this item.
4. To align with city practice of centralizing software costs, we're requesting to move the City Clerk's approved FY2027 supplemental for a dedicated Public Records Request system into the Information Technology (IT) budget. Other similar software requests have already been programmed in IT as part of the FY2027 budget process. This request does not require additional funding, only moving already budgeted dollars between funds.
5. Water Services is requesting $1.75M to purchase Granular Activated Carbon (GAC) filters to help reduce Trihalomethane (TTHM) levels in our water system. Savings from our Brine Disposal / Palo Verde Nuclear Generating Station CIP projects have been identified and are being dedicated to cover the cost of this request. In addition, we're requesting Council also approve the related expenditure authority for this item.
6. Council is being asked to approve expenditure authority of $4.8M related to Facility Asset Management Plan costs already budgeted in FY2027. This amount was omitted from the Administrative Award list adopted by Council in June 2026.
Attachment A Reference:
1. The city may from time to time enter into Development Agreements, most commonly as a mechanism to stimulate economic activity within the city. Those agreements typically involve a financial component tied to some development related performance measure. The city budgets for these obligations each year as part of the annual budget process based on an assumed level of performance by the other party. Budgets for these agreements tend to be conservative in nature as a way to optimize operational flexibility for the upcoming year. This means it's common to see amendments being brought to Council related to Development Agreements where financial obligations exceed budget. When these situations arise, the inference is the city has brought in sufficient financial resources above the budgeted level of performance, providing the ability to cover these increased obligations from the increased revenue generated. The agreement currently being referenced requires the repayment of Fire Impact fees and requires an additional $160,000 to be paid based on development activity during FY2026.
2. In an effort to more easily report on the financial standing of our Ballpark operations and Ballpark Capital Expenditure program, we're reallocating Asset Management dollars that have historically resided in our Facilities Asset Management Plan to the Ballpark Fund Asset Management plan and Capital Expenditure Program respectively. This request does not require additional funding, only moving already budgeted dollars between funds.
3. We're requesting $500,000 to expedite the timing of our next scheduled Facilities Master Plan update from FY2028 to FY2027. Doing so will allow the city to leverage the information gathered for other city initiatives that involve space planning and/or potential capital improvement projects (CIP). In addition, we're requesting Council also approve the related expenditure authority for this item.
4. To align with city practice of centralizing software costs, we're requesting to move the City Clerk's approved FY2027 supplemental for a dedicated Public Records Request system into the Information Technology (IT) budget. Other similar software requests have already been programmed in IT as part of the FY2027 budget process. This request does not require additional funding, only moving already budgeted dollars between funds.
5. Water Services is requesting $1.75M to purchase Granular Activated Carbon (GAC) filters to help reduce Trihalomethane (TTHM) levels in our water system. Savings from our Brine Disposal / Palo Verde Nuclear Generating Station CIP projects have been identified and are being dedicated to cover the cost of this request. In addition, we're requesting Council also approve the related expenditure authority for this item.
6. Council is being asked to approve expenditure authority of $4.8M related to Facility Asset Management Plan costs already budgeted in FY2027. This amount was omitted from the Administrative Award list adopted by Council in June 2026.