HomeMy WebLinkAbout10/1/2003 - STAFF REPORTS (18) DATE: October 1, 2003
TO: City Council
FROM: Executive Director - Airports
AIRPORT BUDGET AMENDMENT
RECOMMENDATION:
It is recommended that the City Council approve amendments to the Airport budget
to reflect current data.
SUMMARY:
This action would result in amendments to the Airport budget that reflect the latest
information and will achieve a 127% net revenue to Debt Service ratio (coverage
ratio) as required by the Airport's bond issues.
BACKGROUND:
The 1992 General Airport Revenue Bond issue requires that net operating income
be at least 125% of the annual debt service payment. Significant increases in
pension and insurance costs adversely affected the Airport's FY 2003-04 budget,
and reduced the estimated coverage to 108%.
Fortunately, several positive developments have affected the Airport's current year
budget.
The following budget adjustments are recommended for City Council consideration:
REVENUE INCREASES (Fund 415 Airport)
Acct. # Acct. Title Bud et Revised Reason
New Reimbursement
33517 Airport Sec. TSA 6 $225,000 Agreement
Original estimate only
had Waste Water
38117 Land Rental $1,007,182 $1,207,182 land rental for'/z year.
Expanded Lot - No
38119 Leased Parking $1,200,000 $1,220,000 Christmas shuttle.
Increased airline
38126 On-Airport Rental Car $3,450,000 $3,550,000 activity.
REVENUE SUBTOTALS $5,657,182 $6,202,182
Airport Budget Amendment
October 1, 2003
Page 2
COST ADJUSTMENTS
Acct. # I Acet. Title Bud et Revised Reason
6002-40200 Temp Employees (10,000) 8 Not needed
6022-40000 Reg. Employees 0 (64,857) TSA Agreement
6022-40700 Holiday Pay 6 (3,245) TSA Agreement
6022-40800 Overtime 9 (50,000) TSA Agreement
6022-41300 Uniform Allowance 0 (2,160) TSA Agreement
6022-41600 PERS 6 (21,993) TSA Agreement
6022-41700 Medical 0 (1,110) TSA Agreement
6022-41900 Fringes 9 (9,290) TSA Agreement
Fleet
Vehicle Replacement recalculation to
6075-49030 Rent (137,306) (39, 685) reflect grants.
Delete Holiday
6100-43200 1 Contractual Services (232,175) (217,715) Shuttle
COST SUBTOTALS ($379,481) ($410,055)
The above adjustments will increase the budgeted revenues by $545,000 and will
increase the budget appropriations by $30,574, for a net positive change of
$514,426. This results in a coverage ratio of 127%.
Budget Resolutions are attached for City Council consideration. Due to the urgency
of this action this item was shared with the Airport Commission at their October
1,2003 meeting and the results will be provided at the City Council meeting.
(Ice E`�%�
ALLEN F. SMOOT, A. A. E. THOMAS M. KANARR
Executive Director - Airports Director of Finance & Treasurer
APPROVED, -'' is s)(� -
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Attachments: 1. Resolutions O
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING THE BUDGET FOR THE 2003-04
FISCAL YEAR.
WHEREAS Resolution 20615 approving the budget for the fiscal year 2003-04 was adopted
on June 4, 2003; 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
20615, adopting the budget for the 2003-04 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
415 29302 $545,000
Airport Retained Earnings
Purpose To reflect net increases in budgeted Airport revenues.
SECTION 2. SOURCE
Fund Activity Account Amount
33517 TSA reimb $225,000
415 38117 Land Rental $200,000
Airport 38119 Leased Parkg $ 20,000
38126 On Airport $100,000
Rental Car
Adopted this day of 2003.
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 2003-04
FISCAL YEAR.
WHEREAS Resolution 20615 approving the budget for the fiscal year 2003-04 was adopted
on June 4, 2003; 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
20615, adopting the budget for the 2003-04 fiscal year is hereby amended as follows
SECTION 1. ADDITIONS
Fund Activity Account Amount
6002 -Admin Temp Employees <10,000>
415 6022 - Airport Various — See Staff 152,655
Airport Security Report
6075 - AR - Fire Vehicle — Repl. Rent <97,621>
6100 - Landside Ops Contract Services <14,460>
Purpose To reflect net increases in budgeted Airport appropriations.
SECTION 2. SOURCE
Fund Activity Account Amount
415 29302 <30,574>
Airport Retained Earnings
Adopted this day of 2003.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED