DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Scott Huizenga
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
FY 2021 Mid-Year Budget Adjustment
SUMMARY:
A mid-year budget adjustment is recommended to the FY 2021 Adopted Operating and Capital Budget that will result in a revised budget based on actual revenues and expenditures for the first six months of the fiscal year (October to March) and projections for the remaining six months of the fiscal year (April to September) in the General Fund and various Restricted Funds. This ordinance also authorizes delegate agency contracts funded from the FY 2021 Delegate Agency Budget and authorizes a contract of up to $100,000 with PFM Group Consulting, LLC for services related to the American Rescue Plan.
BACKGROUND INFORMATION:
As part of the City’s financial management practices, the City Manager recommends a Mid-Year Budget Adjustment for City Council consideration annually. This Adjustment aligns revenues and expenses based on actual activity for the first six months of the fiscal year (October to March) and updated projections for the remaining six months of the fiscal year (April to September). The result of this adjustment is a revised Budget for the Fiscal Year.
On September 17, 2020, the City Council adopted a balanced budget for the City’s fiscal year 2021 that began October 1, 2020. As part of the City’s financial management practices, City staff meets with the City Manager on a monthly basis to review the financial performance of the City and on a quarterly basis, a report is provided to the City Council. Quarterly financial reports are prepared and presented to the City Council.
The FY 2021 Six Plus Six Financial Report was presented to the City Council at the May 12th “B” Session. At this presentation the City Council was provided with a briefing and recommended Mid-Year Budget Adjustments:
• Recommended adjustments to FY 2021 General Fund and Restricted Funds reflecting actual activity for the first six months of the fiscal year (October to March) and projections for the remaining of the fiscal year (April to September). This adjustment results in a revised budget for several funds (See Attachment I)
• Recommended adjustments to the General Fund and some restricted funds for abatement requests to permits and leases on city-owned property that would provide relief from economic downturns resulting from COVID-19. (See Attachment II)
• Recommended awards of delegate agency contracts from the delegate agency reserve funding pool set aside in the FY 2021 Adopted Budget to address additional community needs resulting from COVID-19 (see Attachment III)
• Recommended adjustments to the FY 2021 Capital Budget to cancel the 2017 Parks Bond Project CD 3 Harvey E. Najim YMCA and reallocating $1,950,198.50 to two projects. The amount of $1,462,649.00 is recommended to be reallocated to the World Heritage Park and land acquisition, and $487,549.50 is recommended to fund enhancements to Jupe Manor Park.
• Recommended contract with PFM Group Consulting, LLC in an amount not to exceed $100,000.00 for services related to the American Rescue Plan
ISSUE:
This ordinance authorizes a Mid-Year Budget Adjustment to the FY 2021 Adopted Budget. Included in this Mid-Year Adjustment are the following actions:
• Recommended adjustments to FY 2021 General Fund and Restricted Funds reflecting actual activity for the first six months of the fiscal year (October to March) and projections for the remaining of the fiscal year (April to September). This adjustment results in a revised budget for several funds (See Attachment I)
• Recommended adjustments to the General Fund and some restricted funds for abatement requests to permits and leases on city-owned property that would provide relief from economic downturns resulting from COVID-19. (See Attachment II)
• Recommended awards of delegate agency contracts from the delegate agency reserve funding pool set aside in the FY 2021 Adopted Budget to address additional community needs resulting from COVID-19 (see Attachment III)
• Recommended adjustments to the FY 2021 Capital Budget to cancel the 2017 Parks Bond Project CD 3 Harvey E. Najim YMCA and reallocating $1,950,198.50 to two projects. The amount of $1,462,649.00 is recommended to be reallocated to the World Heritage Park and land acquisition, and $487,549.50 is recommended to fund enhancements to Jupe Manor Park.
• Recommended contract with PFM Group Consulting, LLC in an amount not to exceed $100,000.00 for services related to the American Rescue Plan
ALTERNATIVES:
This Mid-Year Budget Adjustment is part of the City’s Financial Practices to review and adjust the Adopted Budget to reflect actual and projected financial performance for the fiscal year.
FISCAL IMPACT:
The FY 2021 Mid-Year Budget Adjustment adjusts appropriation levels and adjusts budgeted revenues within the General Fund and certain Restricted Funds. Individual adjustments are reflected in Attachments I, II, and III. This adjustment also amends the capital budget and authorizes a contract of up to $100,000 with PFM Group Consulting LLC funded by the FY 2021 General Fund Budget.
RECOMMENDATION:
Staff recommends approval of this item.