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HomeMy WebLinkAbout9/19/2001 - STAFF REPORTS (16) 7 Date: September 19, 2001 To: City Council From: Director of Finance &Treasurer Subject: Transfer of projects from Capital Projects Fund to Bond Savings Capital Projects; Transfer of cash from Capital Projects Fund to General Fund RECOMMENDATION: It is recommended that the Council approve the transfer of $300,000 of capital projects currently budgeted in the Capital Projects Fund to the newly created Bond Savings Capital Projects Fund; additionally, it is recommended that$450,000 be transferred from the Capital Projects Fund to the General Fund. SUMMARY: The first proposed action would move $300,000 worth of capital improvements from the Capital Projects Fund to the newly formed Bond Savings Capital Projects Fund. The second action would transfer the savings created by the first action, plus $150,000 in other project savings, from the Capital Projects Fund to the General Fund. BACKGROUND: The City refinanced the Assessment District Nos. 157 and 158 bond issues effective September 4, 2001, saving just over $300,000. These funds will be deposited into the newly created Bond Savings Capital Projects Fund. The money can only be spent on capital improvements and must be expended within three years. Staff is recommending that $300,873 of the appropriation for the Library Parking Lot project, currently budgeted in the Capital Projects Fund (261-2493-51519) be moved to the new Bond Savings Capital Projects Fund (262-4492-51519), and reappropriated there. The net effect will be to produce $300,000 in unencumbered cash in the Capital Projects Fund. In addition to the $300,000, an additional $150,000 was saved in the Capital Projects Fund from projects that either came in under budget or whose funding was not continued. The major portion of the additional savings came from the Sunrise Park Parking Lot and the North Sphere Annexation #2 projects. Since the above projects were originally funded either by transfers from the General Fund or by allocation of 10% of the General Fund's sales tax revenue, it is allowable to transfer any excess funds back to the General Fund. It is also within the Council's discretion to appropriate some or all of the savings to new or expanded capital improvements. However, the recommended transfer to the General Fund would cover a sizable portion of the City's current year operating deficit. Submitted by: Approved: Thomas M. Kanarr David H. Ready Director of Finance &Treasurer City Manager Attachments: Budget Amendments (2) /5 A RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,AMENDING THE BUDGET FOR THE 2001-02 FISCAL YEAR. WHEREAS Resolution 20062 approving the budget for the fiscal year2001-02 was adopted on June 6, 2001; 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 20062, adopting the budget for the 2001-02 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS - GROUP 3 Fund Activity Account Amount 261 2493 51519 (300,873) 262 4492 51519 300,873 Bond Savings Library Parking Lot Capital Projects Purpose To disappropriate the project in the Capital Projects Fund and reappropriate it in the Bond Savings Capital Projects Fund SECTION 2. SOURCE Refinancing of AD157 & 158 bond issues FUND Activity Account Amount 261 29301 300,873 262 29301 (300,873) Capital Projects Fund Balance Adopted this day of 12001. 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 2001-02 FISCAL YEAR. WHEREAS Resolution 20062 approving the budget for the fiscal year 2001-02 was adopted on June 6, 2001; 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 20062, adopting the budget for the 2001-02 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS - GROUP 3 Fund Activity Account Amount 001 29304 $450,000 General Fund Budgeted Transfers In Purpose To provide additional money to General Fund SECTION 2. SOURCE Savings from moved or cancelled appropriations FUND Activity Account Amount 261 29306 $450,000 Capital Projects Budgeted Transfers Out Adopted this day of , 2001. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED AND APPROVED