| AGENDA ITEM #: 3. DATE: 05/24/2021 AI #:266 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVE FY2021 BUDGET TRANSFERS AND AUTHORIZE EXPENDITURE OF FUNDS |
| STAFF PRESENTER(S): | Doug Sandstrom, Finance Director |
SUMMARY
Approve FY2021 budget transfers and expenditure authorization for infrastructure reimbursement obligations
Recommendation
Approve FY2021 budget transfers and associated authorization to expend funds for reimbursement projects. (Doug Sandstrom, Finance Director)
FISCAL IMPACT
Fiscal impacts are outlined in the attached report. The FY2021 citywide budget total of $599,405,700 remains the same and is within the State Expenditure Limitation amount. The authorized expenditure amount for Infrastructure Reimbursements will increase by $2.8 million based upon increased collections of impact fees and dedicated sales taxes.
BACKGROUND AND PREVIOUS ACTIONS
Budget transfers requiring City council approval are presented as necessary. The FY2021 budget was adopted on June 22, 2020. Resolution 08-1255 requires all expenditures of funds in excess of $500,000 obtain council approval. Each year along with the adoption of the tentative budget, council is asked to authorize routine expenditures of funds in excess of $500,000. On June 8, 2020 council authorized expenditures up to $8,378,700 for infrastructure reimbursement obligations to Westcor/Goodyear and Newland Real Estate Group, this amount was equal to the budget for infrastructure reimbursements. Due to increased development activity and sales tax collections, an increase of both budget and the associated expenditure authorization is required.
STAFF ANALYSIS
Budget transfers 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 transferring appropriations between budget items. The transfer can occur if the funding is available, it is in the public’s interest and based on a demonstrated need, it does not result in exceeding the community’s expenditure limitation, and a majority of the members of the governing body vote affirmatively on the transfer at a public meeting.
Review of the budget transfers keeps the Council and general public informed about the city’s current fiscal year revenues and expenditures.
Review of the budget transfers keeps the Council and general public informed about the city’s current fiscal year revenues and expenditures.