City Council

 

Agenda Request

 

Agenda Of:

January 2, 2008

Agenda Request No:

IV A

 

Initiated By:

Jennifer Brown

Assistant Fiscal Services Director

Responsible Department:

Fiscal Services

 

Presented By:

Linda Symank 

Director of Fiscal Services

Department Head:

Linda Symank 

Director of Fiscal Services

 

 

 

Additional Department. Head (s):

n/a

 

Subject / Proceeding:

Fiscal Year 2006/07 Carryovers

Approval of Fiscal Year 2007/08 Budget Adjustment of $88,439 in Revenues and $1,572,742 in Expenditures

 

Exhibits:

Summary of requested Funding by Fund

 

Clearances

Approval

 

Legal:

n/a

Executive Director:

n/a

 

Purchasing:

n/a

Asst. City Manager:

Karen Daly

 

Budget:

jennifer Brown

Assistant Fiscal Services Director

City Manager:

Allen Bogard

 

Budget

 

Expenditure Required:  $

n/a

 

Amount Budgeted/Reallocation:  $

n/a

 

Additional Appropriation:  $

88,439 in revenues

1,572,742 in expenditures (All Funds)

 

Recommended Action

 

Consideration and approval of a fiscal year 2007/08 budget adjustment in the amount of $88,439 in revenues and $1,572,742 in expenditures for carryover items from the fiscal year 2006/07 budget.

 

Executive Summary

The City’s fiscal year ended September 30, 2007.  At that time there were contracts, capital purchases, and other items that were approved and budgeted in fiscal year 2006/07, but the actual expenditures were not made during the fiscal year.  In order to accomplish these projects, the budget for these carryover items needs to be reestablished in fiscal year 2007/08. 

 

Un-audited numbers for fiscal year 2006/07 show City funds ending on a positive note, most with higher ending balances than projected.  The un-audited fund balance of the General Fund at September 30, 2007 of $20,183,288 is $2.77 million higher than the budgeted ending balance.  This is due to expenditure savings, of which $2.2 million is non-personnel savings.

 

The General Fund carryover request totals $660,862 in expenditures.  Major items in the carryover include wireless video feed to patrol cars, police interactive training system, review of development codes, funds for the grand opening of Sugar Land Memorial Park, an operational review of Accounting, a grant for lead-based paint abatement, and other non-recurring projects which were in progress but not complete at year-end. 

 

If the budget is adjusted for the recommended carryovers, there will still be approximately $2,112,615 in available funding in the General Fund.  We would propose that the $2.1 million in savings be considered for two purposes.  The first purpose would be for current CIP projects.  We are currently seeing a sharp increase in construction costs and are experiencing shortfalls in our construction estimates.  These funds could help address potential project shortfalls and secondly, the savings could be used to safeguard the City’s revenue stream in the event that sales tax collections come in less than budgeted.  In the last two months, sales tax has come in under budget, largely due to one-time adjustments.  The $2.1 million, when combined with the existing fund balance, is $2.8 million in excess of the policy requirements for the General Fund.

 

The Utility Enterprise Fund has an ending cash equivalent balance of $4,057,245, which is $283,825 less than the budgeted ending balance.  This is largely due to lower than anticipated revenues in the fund.  Operational savings totals $689,363 in the fund, of which we are requesting to carry over $69,734.  Cash equivalents after the carryover will be $3,987,511, which is higher than the minimum 25% specified by policy.

 

The Airport Enterprise fund ended the year with a balance of $2,188,716.  This is $373,862 higher than budgeted, largely due to operational savings.  Carryover funding for the airport consists of funds for equipment replacement, RAMP grant projects and grant reimbursement, and various projects in progress but not completed at year end. 

 

The Sugar Land 4B Corporation also has several items requested for carryover, including marketing and promotional funds, feasibility study for the entertainment district, and funding to partner with Cherokee for preservation of Imperial Sugar history.  The 4B Board approved the carryover requests at their December 19, 2007 meeting.  Pursuant to the Corporation’s bylaws, the City Council must also approve their budget adjustments.

 

Capital Projects are budgeted for the duration of the project and any funding for projects in progress at year-end automatically carry over so they are not included in the totals given.

 

 

Exhibits

 


 

FY2006/07 Carryover to FY2007/08

 

 

 

 

Fund

 

Ending Balance

Revenues

Expenditures

Revised  Balance

 

Court Technology

115,232

 

37,425

           77,807

1

Tourism

1,054,338

 

195,206

         859,133

2

CDBG

 

67,804

67,804

                  (0)

3

Tech Replacement

1,382,118

 

15,870

      1,366,248

4

Fleet Replacement

1,330,546

 

52,450

      1,278,096

5

General

20,183,288

 

 

    19,522,426

 

 

Gen Govt

 

 

268,456

 

6

 

Business & IG

 

 

39,663

 

7

 

Fiscal Services

 

 

14,810

 

 

 

Support Services

 

 

7,545

 

 

 

Parks

 

 

69,728

 

8

 

Community Dev

 

 

97,443

 

9

 

Police

 

 

151,545

 

10

 

Fire

 

 

11,672

 

 

 

 

 

 

 

 

Drainage Fund

245,498

 

14,974

         230,524

 

Utility Fund

4,057,245

 

69,734

      3,987,511

11

Airport Fund

2,188,716

20,635

120,779

      2,088,571

12

Law Enf Trust Fund

4,189

 

2,571

             1,618

 

State Seizure Fund

2,977

 

2,500

                477

 

Total City Carryovers

 

88,439

1,240,175

 

 

SL4B Carryovers

9,227,937

 

332,567

8,895,370

13

 

 

 

1,572,742

 

 

 

Significant items to note:

1)      Court Technology Fund- Remaining implementation of IVR system

2)      Tourism- Historic Preservation of Imperial Artifacts

3)      CDBG- unspent funds from FY2006/07 can be allocated toward infrastructure project

4)      Tech Replacement- Units ordered but not received at year-end

5)      Fleet Replacement- Units ordered but not received at year-end

6)      General Government- Accounting operational review, information technology projects, legal services in progress, deductibles for property insurance claims, employee development

7)      Business & IG- Legislative consulting, lead based paint abatement

8)      Parks- SL Memorial Park grand opening, park map, MYAC code of conduct, pool lift

9)      Community Development- Development Code review,  Zoning Board invested rights analysis, comprehensive plan brochure

10)  Police- wireless video feed to patrol cars, IES interactive training system, handguns & ammunition, TCLEOSE training funds

11)  Utility Fund- engineering services, OCE controller upgrade, emergency well repair

12)  Airport- RAMP grant projects and equipment replacement funding

13)  SL4B- Marketing and Economic Development projects considered by the SL4B Board Dec 19, 2007