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BACKGROUND Annually, staff presents the year-end financial report for the Capital Improvement Program (Report) to Council for approval. The Report summarizes the actual results of the financial activities for the CIP Budget, details changes in budget amendments or adjustments in year-end balances and recognizes budget carryovers to the following year'. The City's Comprehensive Annual Financial Report (CAFR) is still in progress; therefore, the financial information included in this Report is unaudited. The audited information will be reflected in the CAFR and will be presented to Council once the City's independent auditor has issued its opinion on the CAFR and the Audit Committee has reviewed it. This is expected to occur in January or February 2021. If there are any differences in the financial information presented in this report and the CAFR as a result of the audit, those changes will be highlighted for the Council at that time. DISCUSSION This report presents the status of the CIP as of June 30, 2020. It compares actual revenues and expenditures to the projections for the year, identifies the carryover of project funds from FY 2019/20 to FY 2020/21, and recommends Council approval of certain increases, decreases or transfers of funds between projects. Sewer CIP Funds Table 1A summarizes the FY 2019/20 activity for the Sewer CIP Funds. The Amended Budget is the original budget plus all budget amendments approved by Council through June 30, 2020. The Adjusted Budget includes the recommended year-end budget amendments. Actual revenues exceeded the amended budget by $256,428 which was due to higher interest income. The actual expenditures were less than the adjusted budget by $6.8 million mainly due to budgeted projects not completed during the fiscal year, all of which have been carried forward to the FY 2020/21 as presented in Table 1B. The adjusted expenditure budget is reduced by $769,445 related to projects that have been closed out and the unused budget returned to fund balance. Staff is recommending that Council approve increasing the revenue budget by $256,428. Table 1A - Sewer CIP Funds Adjusted Budget to Actual Revenues, Transfers & Expenditures Year-End Amended Budget Adjusted $ Sewer CIP Funds Budget Amendments Budget Actual Variance Variance Beginning Fund Balance $14,016,677 $14,016,677 $14,016,677 Revenues 112,765 256,428 369,193 369,193 - 0% Transfers In/(Out) 500,000 500,000 500,000 - Expenditures 7,992,838 (769,445) 7,223,393 379,952 (6,843,441) -95% Ending Fund Balance $6,636,604 (513,017) $7,662,477 $14,505,918 $6,843,441 Staff carried forward FY 2020/21 CIP project budgets for projects that were still in progress in August of 2020 based on estimates of unspent project balances. Thus, this CIP report identifies which projects have been carried forward. 2