Title
Resolution to Appropriate $16,047,998.00 to the Water Supply System Fund Capital Budget for Bond Fund Administrative Clean Up (8 Votes Required)
Memorandum
Attached for your review and consideration is a resolution to appropriate $16,047,998.00 to the Fiscal Year 2025 Water Supply System Fund Capital Budget. This is the result of a reporting change in the fiscal year 2024 Annual Comprehensive Financial Report (ACFR), which is prepared during the City’s annual audit.
The city is required to report unspent bond funds as restricted for capital projects when the associated debt was issued for that purpose. Formerly, this balance was reported as unrestricted net position. This change made it necessary to reflect the use of the bond funds sooner than previously planned to avoid a negative unrestricted net position. Therefore, a portion of bond-eligible capital expenditures that were originally charged to the top-level Water Supply System Fund were charged to the bond fund instead. This change in reporting and the use of bond funds must now be properly reflected and appropriated.
Budget/Fiscal Impact: Transfers will be made within the Water System Supply Fund and will have a net $0 impact on the fund in total.
Staff
Prepared by: Ed Ader, Financial Manager Public Services
Reviewed by: Marti Praschan, Chief Financial Officer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Changes were made to how unspent bond funds impacted unrestricted fund balance during the Fiscal Year 2024 audit;
Whereas, It has become necessary to show bond funds spent sooner than previously planned; and
Whereas, Transfer will be made from the Water System Supply Bond Fund to the Water System Supply Top-Level Fund having a $0 impact on the fund in total;
RESOLVED; That $16,047,988.00 be appropriated to the Water Supply System Fund Capital Budget increasing both revenues and expenditures budgets.