Agenda No. 2.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | September 19, 2023 |
| Department: | Finance |
| Subject: | Ordinance 23-T-23 - Authorizing adjustments to the FY 2022-23 Budget. Final Reading (S. Gonzalez/J. Walters) |
BACKGROUND
The City Budget for FY 2022-23 was approved by Ordinance 22-T-30. The budget can be modified by council authorization when necessary throughout the year.
As previously directed, staff will try to limit the number of budget adjustments that come to council throughout the year by bundling different budget requests together in one adjustment ordinance. This adjustment will adjust budgets of multiple departments as needed, including to fund projects as previously authorized by City Council.
The payment to the Sedona Tax Increment Refinancing Zone (TIRZ) was higher than expected by $300,000. The adjustment will add that amount to the Non-departmental budget line.
Event Facilities will need an additional $58,000 for personnel overages and utility costs.
Fleet will need an additional $60,000 to cover the costs of outside fleet repair orders.
These items will be funded by a transfer from the City Manager personnel savings of $100,000 due to the reorganization initiated by the City Manager earlier this year that transformed the position of Assistant to the City Manager into the Internal Services Director and by $40,000 from the unused legal expenditure budget.
For the remaining amount, staff proposes to recognize $240,000 in fire personnel deployment reimbursements that were unbudgeted and an additional $38,000 in investment income generated by the higher interest rates on the city's investments.
As previously directed, staff will try to limit the number of budget adjustments that come to council throughout the year by bundling different budget requests together in one adjustment ordinance. This adjustment will adjust budgets of multiple departments as needed, including to fund projects as previously authorized by City Council.
The payment to the Sedona Tax Increment Refinancing Zone (TIRZ) was higher than expected by $300,000. The adjustment will add that amount to the Non-departmental budget line.
Event Facilities will need an additional $58,000 for personnel overages and utility costs.
Fleet will need an additional $60,000 to cover the costs of outside fleet repair orders.
These items will be funded by a transfer from the City Manager personnel savings of $100,000 due to the reorganization initiated by the City Manager earlier this year that transformed the position of Assistant to the City Manager into the Internal Services Director and by $40,000 from the unused legal expenditure budget.
For the remaining amount, staff proposes to recognize $240,000 in fire personnel deployment reimbursements that were unbudgeted and an additional $38,000 in investment income generated by the higher interest rates on the city's investments.
GOAL
To approve the budget adjustment to match operations and council authorized projects.
COMMUNITY BENEFIT
To maintain a complete and balanced budget as identified as a goal in the City's Strategic Plan and that meets State and Charter requirements.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of Ordinance 23-T-23.
FISCAL IMPACT
This adjustment will increase the general fund budget by $455,000 and will recognize $455,000 in additional revenues to offset the increase.
Expenditure Budget:
Revenue Budget:
Expenditure Budget:
| Non-Departmental | +$300,000 |
| Event Facilities | +$58,000 |
| Fleet | +$60,000 |
| City Manager | -$100,000 |
| Legal Services | -$40,000 |
| Total | +$278,000 |
Revenue Budget:
| Fire OT Reimbursement | +$240,000 |
| Investment Income | +$38,000 |
| Total | +$278,000 |
RECOMMENDATION
Staff recommends approval of Ordinance 23-T-23.