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CITY COMMISSION AGENDA ITEM |
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Department: |
Finance |
Commission Meeting Date: 8/01/2017 |
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Staff Contact: |
Bryan Kidney |
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Receive information regarding utilizing Capital Improvement Plan (CIP) projects to balance 2018 budget |
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Executive Summary: |
During the June 13, 2017 City Commission meeting, there were comments made about finding CIP projects to cut in order for the 2018 budget to be adopted without an increase of 1.25 mills in the debt service fund. In order to aid with the Commission budget discussion on August 1, staff would like to offer two lists that may be of use during the meeting.
The City Manager has provided a Recommend 2018 Budget and 2018-2022 CIP that includes a balanced General Fund and all other funds in balance to a long-term financial forecast. If the City Commission wishes to adjust the budget, it would be fiscally prudent to ensure the adjustment maintains that balance.
Governmental projects As discussed previously, many of the funds within the City are restricted for the specific purpose for which the revenue was derived. There are rules against using funds restricted for one purpose to be used for another purpose. Alcohol excise taxes, utility fees, gas tax, and grant funds are all examples of receipts that have restricted purposes and cannot be used to pay for general operations of the City. Therefore, if the City Commission wishes to cut a general government projects or services in order to reduce taxes, they should focus on funds that are not restricted in their use.
Funds that are considered general purposes and without a specific restriction are the General, Capital Improvement Reserve, Equipment Improvement Reserve, Debt and Recreation funds. Both the Capital Improvement Reserve and Equipment Reserve funds are funded mainly by the Infrastructure Sales Tax. However, the language of the ballot question included the provision of spending for governmental purpose.
Staff reviewed the current 2017 CIP and the 2018-2022 CIP for items in the general purpose funds above for any project that does not have a contract in place or has not yet been started.
CIP projects paid with cash funds There is a total of $53,017,500 in projects planned to be paid with cash funds that do not have any current contractual arrangements. If there is a project the Commission wishes to move from one fund to another (i.e. Debt Service to cash funded) there should be a corresponding permanent cut from the list.
CIP projects paid through debt issuance There is a total of $39,713,100 in projects planned to be paid for through general obligation debt. If the Commission wishes to decrease the proposed mill levy increase, there would need to be $17,000,000 in debt funded projects cut from the list. |
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Strategic Plan Critical Success Factor |
Effective Governance/Professional Administration Sound Fiscal Stewardship |
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Fiscal Impact (Amount/Source): |
There is not a fiscal impact to this item unless action is taken to adjust a CIP item. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☐DS ☐CT ☐BM |