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HomeMy WebLinkAbout5/21/2008 - STAFF REPORTS - 2.H. .y V N e �opbnnxe ;rt C44 1FORN`P City Council Staff Report DATE: May 21, 2008 Consent Calendar SUBJECT: Transfer to General Fund from Capital Projects Fund; Transfer to Public Safety Community Facilities District (CFD) from General Fund FROM: David H. Ready, City Manager BY: Department of Finance and Treasury SUMMARY The proposed $400,000 transfer from the Capital Projects Fund would be funded by a like reduction in the appropriation for the line item account SMG Convention Center (see 261-1395-63565). The remaining funds in that account, about $461,000, are sufficient for the Convention Center's capital needs this year. The proposed transfer of $180,000 to the Public Safety CFD Fund is necessary to cover the accumulated revenue shortfall from the last fiscal year and the current fiscal year. RECOMMENDATION: 1) Approve Resolution No. amending the Fiscal year 2007-08 Budget to transfer $400,000 from the Capital Projects Fund to the General Fund. 2) Approve Resolution No. amending the Fiscal year 2007.08 Budget to transfer$180,000 from the General Fund to the Public Safety CFD Fund. STAFF ANALYSIS: The mid-year review of the FY 07-08 budget revealed that lower than expected revenue primarily sales taxes, would push the Operating Funds into a deficit for the year. The Public Safety CFD Fund, because of lower than expected assessment revenue, already had a negative cash balance from the prior year. Among the solutions presented by staff to the Council were the proposed transfers. The funds in the Capital Projects Fund will become available by reducing the appropriation for the Convention Center capital projects. The funds to be transferred to the Public Item No. 2 • H City Council Staff Report May 21, 2008 -- Page 2 Transfer to General Fund from Capital Projects Fund, Transfer to Public Safety CFD from General Fund Safety CFD are coming from General Fund reserves. FISCAL IMPACT: The Public Safety CFD's negative cash balance will be eliminated. Transfer to cover future years' deficits are likely to be necessary. Funding for future, unscheduled capital projects for the Convention Center will be reduced by $400,000. The effect on the General Fund is a net transfer in of$220,000. Geoffrey S. Kiehl Thomas M. Kanarr Director of Finance & Treasurer Consultant David H. Ready City Manager Attachments: 2 Resolutions � Q0Ll2 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2007-08 FISCAL YEAR. WHEREAS Resolution 21901 approving the budget for the fiscal year 2007-08 was adopted on June 6,2007; 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 21901, adopting the budget for the 2007-08 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount General Fund Fund Balance $400,000 001 29301 Purpose To cover a portion of the General Fund's FY 07-08 projected deficit. SECTION 2. SOURCE Disappropriation in account 261-1395-63565, SMG Convention Center; interfund transfers in and out. Fund Activity Account Amount Capital Projects Fund Balance $400,000 261 29301 ADOPTED THIS day of , 2008. David H. Ready, City Manager ATTEST: James Thompson, City Clerk 0000y13 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California Q9dQQ 12 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2007-08 FISCAL YEAR. WHEREAS Resolution 21901 approving the budget forthe fiscal year 2007-08 was adopted on June 6,2007; 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 21901, adopting the budget for the 2007-08 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount Public Safety CFD Fund Balance $180,000 140 29301 Purpose To cover accumulated deficit from FY 06-07 and FY 07-08. SECTION 2. SOURCE General Fund reserves, via interfund transfers in and out. Fund Activity Account Amount General Fund Fund Balance $180,000 001 29301 ADOPTED THIS day of , 2008. David H. Ready, City Manager ATTEST: James Thompson, City Clerk 609005 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California CO IS