HomeMy WebLinkAbout12/6/2000 - STAFF REPORTS (7) Date: December 6, 2000
Memo To: City Council
From: Director of Finance &Treasurer and Acting Director of Aviation
Re: Transfer of Funds from Airport Passenger Facility Charge Fund to Airport Fund
Recommendation:
It is recommended that the City Council approve a budget amendment transferring
$4,033,929 from the Airport PFC Fund to the Airport Fund.
Summary:
Since the Airport PFC Fund and the Airport Fund are combined in the City's annual
financial report, this action is essentially an internal housekeeping item. The PFC Fund
gets its revenue from the $3 per passenger charge allowed by the FAA. For Fiscal
Year 2000-01, the fee is expected to generate $1.7 million. The PFC is intended to
help pay for the Airport improvements funded by the1992 and 1998 bond issues. For
accounting purposes, the PFC is segregated in a separate Fund, while the majority of
the bond expense is budgeted in the Airport Fund. The proposed transfer would cover
the entire debt service for the last two years and current year of the 1992 issue, and
the interest on the current year of the Series 1998 General Airport Revenue Bond
(GARB) issue.
Background:
The Airport Terminal Expansion project was completed in two phases, and was funded
by the Series 1992 Airport Revenue Bonds, the Series 1998 Airport Revenue Bonds,
and the Series 1998 Airport PFC Bonds, at a total issuance cost of $37,245,000. The
sources of repayment are the rates and charges the airlines pay to the Airport, and the
$3 per passenger fee.
A complicated arrangement between the City, the Federal Aviation Administration and
the bond issuer pledges the PFC revenue first to the Series 1998 PFC issue. Any
income above that requirement may be used to cover the debt service of the Series
1992 and/or the Series 1998 GARB issues.
For accounting purposes and to meet the FAA's reporting requirements, the PFC
revenues and the Series 1998 PFC bond repayments are budgeted in a separate Fund.
The other bond issues' debt services are budgeted in the Airport Fund. At year end,
the two funds are combined in the City's comprehensive Annual Financial Report
(CAFR).
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The proposed transfer eliminates an imbalance in cash between the two funds. There
are no budgetary impacts from this action.
The attached budget amendments would authorize the immediate transfer of
$2,406,930 to cover the Series 1992 debt service for the last two years, and a transfer
of$1,626,999 as of June 30, 2001 to cover the Series 1992 debt service and the
Series 1998 GARB interest for the current fiscal year. The latter transfer is contingent
upon meeting the PFC revenue estimates for the year. The actual transfer could be
somewhat higher or lower.
Submitted by:
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Thomas M. Kanarr Bai Griffith'.
Director of Finance & Treasurer Acting MCI; Y�f Aviation
Approved:
David H. Ready
City Manager
Attachments; Budget Amendments (2)
5�I Z
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2000-01 F ISCAL YEAR.
WHEREAS Resolution 19817 approving the budget for the fiscal year 2000-01 was
adopted on June 21, 2000; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to
record inter-fund cash transfers as required in accordance with this Resolution, and that
Resolution 19817, adopting the budget for the 2000-01 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS
FUND Activity Account Amount
No.415 29304 $2,406.930
Budgeted
Title: Airport Transfers In
Purpose: To cover debt service costs from the Series 1992 Airport Revenue Bonds for
Fiscal years 1998-99 and 1999-00.
SECTION 2. SOURCE
FUND Activity Account Amount
No. 410 29306 $2,406,930
Budgeted
Title: Airport PFC Transfers Out
Adopted this day of , 2000.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2000-01 FISCAL YEAR.
WHEREAS Resolution 19817 approving the budget for the fiscal year 2000-01 was
adopted on June 21, 2000; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to
record inter-fund cash transfers as required in accordance with this Resolution, and that
Resolution 19817, adapting the budget for the 2000-01 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS
FUND Activity Account Amount
No.415 29304 $1,626,999
Title: Airport Budgeted
Transfers In
Purpose: To cover debt service costs from the Series 1992 Airport Revenue Bonds and
the interest cost of the Series 1998 Airport Revenue Bonds for Fiscal Year 2000-01,
contingent upon availability of funds in the Airport PFC fund.
SECTION 2. SOURCE
FUND Activity Account Amount
No. 410 29306 $1,626,999
Budgeted
Title: Airport PFC Transfers Out
Adopted this day of 12000.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED