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HomeMy WebLinkAboutInformational Records - Town Council Reports (4) Town Manager’s Office TOWN COUNCIL REPORT DATE: May 16, 2017 TO: Mayor and Councilmembers FROM: Daniel G. Sharp, Interim Town Manager Stacey Lemos, Finance Director SUBJECT: Changes for FY 2017/18 Tentative Budget adoption This report is intended to provide a comprehensive summary of all changes included in the FY 2017/18 Tentative Budget presented for approval on May 17, 2017. These changes are based on Council discussions at the April 26 and May 10, 2017 budget study sessions, impacts from the passage of the State budget and other minor adjustments based on capital project spending. This report includes updated changes to the Recommended Budget beyond what is included in the May 17, 2017 Council packet materials that were released on May 10, 2017. DISCUSSION Staff presented the FY 2017/18 Manager’s Recommended Budget in the amount of $123,192,755 at the April 19, 2017 regular Town Council meeting. Staff will present the FY 2017/18 Tentative Budget for Council approval at the May 17, 2017 regular Town Council meeting in the amount of $128,567,505, an increase of $5,374,750 over the Recommended Budget amount. The following changes account for this increase: • $5,000,000 in additional budget capacity was added to the Capital Project Bond Fund for the possible issuance and expenditure of general obligation bonds should the November 7, 2017 special bond election pass for additional fields and amenities at Naranja Park. • $249,750 in additional budget capacity was rolled over to FY 2017/18 for the energy efficiency project at the Community Center based on an updated spending estimate from Trane, the project contractor. This project is expected to be completed on budget by early fall, and this adjustment simply allocates the appropriate amount into next year’s budget for completion within the Energy Efficiency Project Fund. • State shared highway user fund (HURF) revenues were increased by $125,000 in the Highway Fund based on an increased one-time allocation to cities and towns funded through the State budget for FY 2017/18. As a result of this increase, the subsidy transfer from the General Fund to the Highway Fund for FY 2017/18 was decreased by $125,000 from $400,000 to $275,000. This change increased the estimated FY 2017/18 year-end fund balance in the General Fund from $11,672,345 to $11,797,345. • $50,000 in bed tax fund contingency reserves were moved to the economic development division operating budget to further support economic development marketing, advertising, sports tourism and arts and culture per Council direction at the May 10, 2017 budget study session. This change reduced the estimated FY 2017/18 year-end fund balance in the Bed Tax Fund from $276,288 to $226,288. The remaining item requested for Council clarification is the funding for Steam Pump Ranch and whether Council would like to shift the $55,120 currently budgeted in the CIP for the design costs for the Proctor Leiber House rehabilitation to equipping the Pusch House with a sprinkler system and security system as discussed at the April 26, 2017 budget study session. RECOMMENDATION / CONCLUSION This report is for information only.