File #: 22-0599   
Type: Ordinance-S Status: Adopted
Meeting Body: City Council Formal Meeting
On agenda: 6/15/2022 Final action: 6/15/2022
Title: Amend Ordinance S-47690 Adopting the 2021-22 Capital Funds Budget (Ordinance S-48763)
District: Citywide
Attachments: 1. Attachment A - 2021-22 Capital Reallocation Ord S-47690.pdf

Title

Amend Ordinance S-47690 Adopting the 2021-22 Capital Funds Budget (Ordinance S-48763)

 

Description

An ordinance (Attachment A) amending Ordinance S-47690 adopting the 2021-22 Capital Funds Budget to authorize reallocating appropriations among lawfully available appropriations to ensure the continued operation of the City of Phoenix in the payment of necessary expenses.

 

Report

Summary

This legally required amendment to the 2021-22 Capital Funds Budget will allow the City to close out the current fiscal year's budgetary accounts and proceed with the annual independent audit. This is a standard end-of-year process required to close the books.

 

State law precludes any expenditure not included in the budget even if additional funds become available. This means all expenditures require an appropriation. An appropriation is the formal recognition in the City's official accounting records that the City Council has approved spending authority. State law allows the City Council to transfer spending authority between line items in the adopted budget. This does not represent an actual transfer of funds, but rather, only transfers of spending authority between specific areas. As a result, the total bottom line budget amount for 2021-22 does not change.

 

To make sure all planned expenditures have appropriate spending authority, each year the Budget and Research Department brings to the City Council a request to amend the original budget amounts between specific areas at the end of each fiscal year. This is a normal part of the annual budget close-out process. Variances between estimated and actual expenditures that trigger the need to do these reallocated appropriations are usually caused by timing differences, such as expenditures originally planned for the later part of the 2020-21 fiscal year that actually occurred during the 2021-22 fiscal year. These timing variances can be quite large, especially when dealing with construction contracts. Allowing for these timing differences in our request for year-end budget amendments allows for bid awards and payments to vendors to proceed.

 

The amendments to the 2021-22 Capital Funds Budget require City Council approval to move spending authority from areas where excess authority is available to other areas where insufficient authority was originally provided due to normal changes during the year.

 

A $55,000,000 decrease in 2021-22 appropriation authority is requested in the Water Program's Capital Funds Budget due to various capital improvement projects budgeted in 2021-22 with expenditures not expected until fiscal year 2022-23.

 

A $55,000,000 increase in 2021-22 appropriation authority is requested in the Phoenix Convention Center Program's Capital Funds Budget due to unbudgeted expenditures for the purchase of the building at 100 W. Washington St. in fiscal year 2021-22.

 

These are balancing measures with a net impact of $0. The total appropriation remains unchanged.

 

Department

Responsible Department

This item is submitted by City Manager Jeffrey Barton and the Budget and Research Department.