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BACKGROUND
<br />Annually, staff presents the year-end financial report for the Capital Improvement
<br />Program (Report) to Council for approval. The Report summarizes the actual results of
<br />the financial activities for the CIP Budget, details changes in budget amendments or
<br />adjustments in year-end balances and recognizes budget carryovers to the following
<br />year. The City's Comprehensive Annual Financial Report (CAFR) is still in progress;
<br />therefore, the financial information included in this Report is unaudited. The audited
<br />information will be reflected in the CAFR and will be presented to Council once the
<br />City's independent auditor has issued its opinion on the CAFR and the Audit Committee
<br />has reviewed it. This is expected to occur in January or February 2022. If there are any
<br />differences in the financial information presented in this report and the CAFR as a result
<br />of the audit, those changes will be highlighted for Council at that time.
<br />DISCUSSION
<br />This report presents the status of the CIP Budget as of June 30, 2021. It compares
<br />actual revenues and expenditures to the projections for the year, identifies the carryover
<br />of project funds from FY 2020/21 to FY 2021/22, and recommends Council approval of
<br />certain increases, decreases or transfer of funds between projects
<br />Sewer CIP Funds
<br />Table 1A summarizes the FY 2020/21 activity for the Sewer CIP Funds. The Amended
<br />Budget is the original budget plus all budget amendments approved by Council through
<br />June 30, 2021. The Adjusted Budget includes the recommended year-end budget
<br />amendments. Actual revenues are lower than the amended budget by $95,469 which
<br />was due to lower interest income. Actual expenditures were less than the adjusted
<br />budget by $7.4 million mainly due to budgeted projects not completed during the fiscal
<br />year, all of which have been carried forward to the FY 2021/ 22 as presented in Table
<br />1 B. The adjusted expenditure budget is reduced by $1.5 million related to projects that
<br />have been closed out and the unused budget returned to fund balance. Transfers
<br />include an additional $1.1 million authorized by Council as the year end allocation for
<br />the Sewer Management Plan.
<br />Staff is recommending that Council approve the following:
<br />• Decrease the revenue budget by $95,469
<br />• Increase the transfer budget by $1,090,945
<br />Table 1A - Sewer CIP Funds Adjusted Budget to Actual Revenues, Transfers & Expenditures
<br />Sewer CIP Funds
<br />Amended
<br />Budget
<br />Year End Budget
<br />Amendments
<br />Adjusted Budget
<br />Actual
<br />$ Variance
<br />Variance
<br />Beginning Balance
<br />$ 14,692,068
<br />$ 14,692,068
<br />$ 14,692,068
<br />$ -
<br />0.0
<br />Revenues
<br />159,382
<br />(95,469)
<br />63,913
<br />63,913
<br />-
<br />0.0
<br />Transfer
<br />1,000,000
<br />1,090,945
<br />2,090,945
<br />2,090,945
<br />-
<br />0%
<br />,Expenditures
<br />9,653,791
<br />(1,507,604)
<br />8,146,188
<br />772,627
<br />(7,373,561)
<br />-91%
<br />Ending Fund Balance
<br />$ 6,197,658
<br />$ 2,503,080
<br />1 $ 8,700,738
<br />$ 16,074,298
<br />$ 7,373,5611
<br />1
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