HomeMy WebLinkAbout12/4/2002 - STAFF REPORTS (15) DATE: December 4, 2002
TO: City Council
FROM: Executive Director—Airports
AIRPORT MIDYEAR BUDGET ADJUSTMENTS
RECOMMENDATION:
It is recommended that City Council approve a midyear budget adjustment for the
Airport Fund.
SUMMARY:
This action will update the original budget estimates so that an accurate calculation
of the Airport's revenue to expenditure ratio can be completed for annual revenue
bond reporting.
BACKGROUND:
The Airport's 1992 Revenue Bond Issue has a rate coverage covenant which requires
the Airport to have annual revenue that meets or exceeds 125% of operation and
maintenance costs. Post 9111, the Airport reported on several occasions that it was
concerned with this covenant as our revenues looked like they would be down and the
covenant would require us to raise rates to the airlines, something we really did not
want to do. The Airport's recovery plan, as previously reviewed with the Commission
and City Council, called for a refinancing of the 1992 Revenue Bond Issue to remove
the rate covenant.
In the meantime,there is an annual reporting which must be completed by the City's
financial consultant. To accurately calculate and report the coverage ratio, this
requested action by City Council, is to amend the budget so as to provide the most
recent estimates of revenue to the financial consultant.
Attached is a Budget Resolution and with its adoption,the financial consultant reports
that the rate covenant ratio will be 126%.
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ALLEN F. SMOOT, AAE THOMAS M. KANARR
Executive Director—Airports Director of Finance and
Treasurer
APPROVED --
City Manager
ATTACHMENT:
1. Resolution
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City of Palm Springs
Detail for Budget Resolution
Amending Airport Fund Budget
Revenue Increases:
Account# Account Name Current Est Revised Add'I Amount
415-38106 Scheduled $1,000,000 $1,113,000 $113,000 (a)
Landing Fees
415-38109 Airfield 200,000 225,000 25,000 (a)
Concessions
415-38123 Terminal Non- 370,000 510,000 140,000 (b)
Air Rentals
415-38130 Food 115,000 150,000 35,000 (a)
Concessions
415-37801 Sale of Real 0 671,000 671,000 (c)
Property
$ 984,000
(a) from add'I flights
(b) TSA lease
(c) Sale of land to School District
Appropriation Decreases:
415-6050-42002 Electricity Cogen $118,500 $60,500 $58,000
—Airside
415-6075-42002 Electricity Cogen- 50,100 20,100 30,000
ARFF
415-6100-42002 Electricity Cogen 224,7D2 100,702 124,000
—Landside
415-6200-42002 Electricity Cogen 700,000 400,000 300,000
—Terminal Bldg
$512,000 (a)
(a) Airport electricity usage has dropped and the cost
of the City's cogenerated electricity also declined
from budgeted levels.
/3,BZ
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2002-03 FISCAL YEAR.
WHEREAS Resolution 200357 approving the budget for the fiscal year 2002-03 was
adopted on June 5, 2002; 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 20357, adopting the budget for the 2002-03 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
415 29302 $1,496,000
Airport Retained Earnings
Purpose: To amend the Airport Fund's FY 02-03 budget to more accurately reflect
current conditions.
SECTION 2. SOURCE Revenue estimates increased due to increased flights, the
new TSA lease and the sale of land. Appropriations can be decreased
due to expected savings in utility costs.
Fund Activity Account Amount
415 (see attached detail) Revenue $984,000
Airport Appropriations $512,000
Adopted this day of 12002.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED
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