The City Budget for FY 2023-24 was approved by Ordinance 23-T-18.  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.

First, the payment to the Sedona Tax Increment Refinancing Zone (TIRZ) was higher than expected by $80,758. This adjustment will increase the Economic Development Budget.

Parks's budget will be adjusted up by $110,000 for the impact of the Classification and Compensation Study and job progression program implementation, as well as $47,766 for the mowing contract update that occurred midyear. Other Parks adjustments include $30,000 for health insurance selections during the last open enrollment and $52,000 in supplies used to make repairs and do maintenance on parks.

The Pool budget will increase $30,000 for water usage.

Event Facilities' personnel budget will increase $80,000 due to an employee being budgeted to a different department and $16,000 for health insurance selections. This department also needs to budget an additional $20,000 in temporary employment services for additional assistance used in FY 2023-24.

The Library's budget will increase $20,000 for health insurance selections.

The Fire Department's budget will increase $800,000 in overtime for state deployments. This is fully reimbursed by the state and will be covered by an additional $800,000 coming in from the state.

Legal Services will increase by $20,000 to cover additional legal services seen in the current year.

The Fleet budget will increase $59,000 for a vehicle ordered and approved in FY 2022-23 but that did not arrive until this current year. It will also increase its motor vehicle supply line by $100,000 and outside collision repair by $17,000 for the repairs done. Also included would be $28,000 in a generator rental for the public safety buildings.

The Facilities budget will increase $40,000 for a vehicle ordered and approved in FY 2022-23 but that did not arrive until this current year.

These General Fund adjustments will be offset by the additional $700,000 in new commercial building permits and an additional $50,524 in residential permit revenue in addition to the $800,000 state reimbursement for fire deployment services. These revenues have already received more than the original budget and these amounts were all included in the year-end projections.

For the Capital Recovery Sewer Fund, an additional $1,860,000 will be budgeted for Woman Hollering Creek Sewer Trunk Line. The construction contracts have already been approved and this was the selected funding source. Since the last capital recovery allocation, the sewer impact fees have raised an additional $1,860,000 that can be assigned to the project. Remaining funding to close the project is estimated to be $424,000 which will be collected and assigned to the project in FY 2024-25.

To adjust the budget and align additional revenues to expenditures for FY 2023-24.

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.

Staff recommends approval of Ordinance 24-T-153

General Fund
Expenditures Budgets:
Parks:                 $239,766
Pools:                 $  30,000
Event Facilities:  $116,000
Library:               $  20,000
Legal:                 $  20,000
EDC/TIRZ:         $  80,758
Fleet:                  $204,000
Facilities:            $  40,000
Fire:                   $800,000
Total Expenditures: +$1,550,524

Revenue Budget:
State Reimbursement:       $800,000
New Commercial Permits: $700,000
New Residential Permits:  $  50,524
Total Revenue:                      +$1,550,524

Capital Recover Sewer:
Transfer to Woman Hollering Creek from reserves: $1,860,000
 

Staff recommends approval of Ordinance 24-T-153