| ITEM #: 3. DATE: 09/28/2026 AI #:3488 |
 |
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
.png) |
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 the Budget Amendment Report (Attachment A). The citywide budget total remains unchanged within the Adopted State Expenditure Limitation.
BACKGROUND AND PREVIOUS ACTIONS
Budget amendments requiring 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.
The Budget Amendment Report (Attachment A) includes the following items for reference:
1. Human Resources Department Risk Management section is requesting an additional $170,000 in FY2027 to repair wiring and replace three conductors at the Water Services Department's Adaman Well #3 due to theft. Approximately 85% of this cost will be offset by insurance proceeds.
2. Water Services Department is requesting to move project 61027 - Well 18B: Redrill, which is currently budgeted in FY2028, into FY2027. The project is budgeted at $2,532,000.
3. Establish Customer Service & Innovation Department Budget - At its August 31, 2026 Council meeting, Council approved Ordinance No. 2026-1653, authorizing the establishment of the Customer Service & Innovation (CSI) Department. Council is now being asked to approve all budget amendments necessary to operationalize the new department. This process primarily involves reallocating funding from other existing city departments to the new CSI Department. No additional funding beyond the adopted FY2027 budget is requested through this action. Any future requests for funding above adopted levels will be considered in accordance with the city’s Council-adopted budget amendment policy.
The Budget Amendment Report (Attachment A) includes the following items for reference:
1. Human Resources Department Risk Management section is requesting an additional $170,000 in FY2027 to repair wiring and replace three conductors at the Water Services Department's Adaman Well #3 due to theft. Approximately 85% of this cost will be offset by insurance proceeds.
2. Water Services Department is requesting to move project 61027 - Well 18B: Redrill, which is currently budgeted in FY2028, into FY2027. The project is budgeted at $2,532,000.
3. Establish Customer Service & Innovation Department Budget - At its August 31, 2026 Council meeting, Council approved Ordinance No. 2026-1653, authorizing the establishment of the Customer Service & Innovation (CSI) Department. Council is now being asked to approve all budget amendments necessary to operationalize the new department. This process primarily involves reallocating funding from other existing city departments to the new CSI Department. No additional funding beyond the adopted FY2027 budget is requested through this action. Any future requests for funding above adopted levels will be considered in accordance with the city’s Council-adopted budget amendment policy.