HomeMy WebLinkAbout10/2/2002 - STAFF REPORTS (15) �,.7,
DATE: October 2, 2002
TO: City Council
FROM: Executive Director-Airports
BUDGET TRANSFERS — PASSENGER FACILITY CHARGE FUND TO AIRPORT FUND
RECOMMENDATION:
It is recommended that City Council approve two budget transfers to move Passenger
Facility Charge (PFC) revenues from the PFC Fund to the Airport Fund to cover debt
payments.
SUMMARY:
These actions will allow for available PFC revenue to be transferred from the PFC
Fund to the Airport Fund to help pay debt service on Airport Bonds.
BACKGROUND:
The Airport has a Passenger Facility Charge(PFC)of$4.50 per enplaned passenger
which the airlines collect and remit. Our PFC is solely dedicated to paying debt on
three separate bond issues. One bond issue debt is carried in the PFC Fund and paid
directly from those revenues. The other two bond issues are budgeted in the Airport
Fund but may be paid for from PFC revenues. To accomplish this, each year a
transfer between the funds is carried out.
In fiscal 01/02, a transfer was authorized; however, as Finance is closing out the
books, there is some$500,000 excess PFC revenue remaining which could help the
Airport Fund with its last year's debt if an additional transfer were approved. The first
budget Resolution, attached, would approve an amendment for the past fiscal year.
As part of the fiscal 02/03 budget adoption Resolution, again a specific dollar amount
for this current year's transfer was listed. By the end of the year there will be excess
PFC revenue. To eliminate the need for multiple transfers each year, staff is
proposing the second budget Resolution which would allow for any excess funds, up
to the total annual Airport Fund debt service requirements, to automatically be
transferred to the Airport Fund.
ALL . SMOOT, AAE THOMAS M. KANARR
Executive Director—Airports Director of Finance & Treasurer
APPROVED
City Manager
ATTACHMENTS:
1. 01/02 Resolution
2. 02/03 Resolution
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 forthe 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
FUND Activity Account Amount
415 29312 $450,000
Airport Transfers In
Purpose: To provide additional support for Airport bond issues debt service.
SECTION 2. SOURCE The Passenger Facility Charge Fund has an adjusted cash
balance of about $499,000 at 6/30/02.
FUND Activity Account Amount
410 29322 $450,000
Airport PFC Transfers Out
Adopted this day of 2002
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED AS TO FORM
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING THE BUDGET FOR THE 2002-03
FISCAL YEAR.
WHEREAS Resolution 20357 approving the budget forthe fiscal year2002-03 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 29312 Not to exceed annual
Airport Transfers In debt service*
Purpose To amend the amount of the transfer of PFC funds from a fixed amount($1.2
million) to an amount not to exceed the Airport Fund's debt service.
SECTION 2. SOURCE PFC charge was increased from $3 to $4.50 on 1/1/02.
Fund Activity Account Amount
410 29322
Airport PFC Transfers Out
Adopted this day of 2002. * 1,780,154 in FY 02-03
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED