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Item # 1.
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| Town Council Regular Session |
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| Information |
| SUBJECT: |
| PUBLIC HEARING: RESOLUTION NO. (R)17-20, ADOPTION OF THE TENTATIVE BUDGET FOR FY 2017/18 AND SETTING THE LOCAL ALTERNATIVE EXPENDITURE LIMITATION FOR FY 2017/18 |
| RECOMMENDATION: |
| Staff recommends approval. |
| EXECUTIVE SUMMARY: |
This item is for Council consideration and adoption of the Town's Tentative Budget for FY 2017/18 in the amount of $128,442,505, a $5,249,750 increase from the FY 2017/18 Recommended Budget of $123,192,755, presented on April 19, 2017. This increase is attributable to adding additional budget capacity during FY 2017/18 for the possible issuance and expenditure of bond funds for the construction of additional multi-use sport fields at Naranja Park should the November 7, 2017 special bond election pass. This additional budget capacity would not be utilized if the measure is not approved by the voters. Also, the project rollover amount for the energy efficiency project at the Community Center was increased by $249,750 next fiscal year based on an updated spending projection from Trane, the project contractor.
Adoption of this resolution will also set the maximum local expenditure limitation at this amount. Once the limitation is set, expenditures for the year may not exceed that amount. The Council has the authority to make changes to the budget prior to the final budget adoption scheduled for June 7, 2017; however, the total amount of the final budget may not exceed the expenditure limitation set this evening. The Council also has the authority to modify the budget throughout the fiscal year. |
| BACKGROUND OR DETAILED INFORMATION: |
Staff presented the FY 2017/18 Manager's Recommended Budget in the amount of $123,192,755 at the April 19, 2017 regular Town Council meeting. The full copy of the Recommended Budget has been posted on the Town's website, www.orovalleyaz.gov.
The FY 2017/18 Tentative Budget is presented for approval this evening in the amount of $128,442,505, an increase of $5,249,750 from the Recommended Budget. This difference is attributable to $5,000,000 in added budget capacity for the possible issuance and expenditure of general obligation bonds should the November 7, 2017 special bond election pass for additional fields and infrastructure at Naranja Park. This increase is reflected in the Capital Project Bond Fund. The total bond authorization to be submitted to the voters is $17,000,000, with $5,000,000 reflecting an estimate of what may be spent in FY 17/18, should the measure be approved. If the measure is not approved, the Town would not utilize this additional budget capacity.
Another change included in the Tentative Budget is in the Energy Efficiency Project Fund related to the bond-funded energy efficiency improvements underway at the Community Center. The budget for FY 17/18 was increased $249,750 based on an updated estimate from Trane (the project contractor) on anticipated spending in FY 16/17, and the appropriate amount of capacity to roll over into FY 17/18. Staff has reduced the FY 16/17 year-end expenditure estimate by $249,750, and recommends the roll over of this amount into FY 17/18. This project is expected to be completed within budget by early fall of this year, and this budget adjustment simply allocates the appropriate amount into next year's budget for completion.
These adjustments have been incorporated into the budget figures shown in the attached Official Auditor General budget forms.
Council budget study sessions were held on April 26 and May 10, 2017, to provide overviews of the larger, service delivery department budgets, including the Capital Improvement Program. This agenda item is a public hearing and approval of the resolution to adopt the FY 2017/18 Tentative Budget in the amount of $128,442,505. Once approved, the attached Auditor General Budget forms with the approved budget amounts will be published for two consecutive weeks prior to the next public hearing for Final Budget approval scheduled for June 7, 2017. |
| FISCAL IMPACT: |
| N/A |
| SUGGESTED MOTION: |
I MOVE to (approve or deny) Resolution No. (R)17-20, adopting the Tentative Budget for fiscal year 2017/18 and setting the local alternative expenditure limitation for fiscal year 2017/18 at $128,442,505.
OR
I MOVE... |
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