Adopt Appropriation Ordinances to Support Budget Corrections that will Align Fiscal Year 2018 Appropriations for Energy Conservation Program Debt Service Payments to the Proper Payment Centers (ALL COUNCIL DISTRICTS)

It is recommended that the City Council:

1.  Adopt the attached ordinance increasing estimated receipts and appropriations for Fiscal Year 2018 in the General Fund by $1,339,412.00, from transfers of previously appropriated funds, and reallocating $617,936.00 in previously appropriated funds from a transfer out to an energy conservation loan payment; and

2.  Adopt the attached ordinance decreasing estimated receipts and appropriations for Fiscal Year 2018 in the General Debt Service Fund by $1,957,347.00 from transfers in of previously appropriated funds to facilitate correction of payment centers for debt service on the outstanding energy conservation loans.

The purpose of this Mayor and Council Communication (M&C) is to revise the Fiscal Year 2018 (FY2018) budget and appropriations to ensure proper accounting for payments related to the City's energy conservation programs under the auspices of the federal Energy Savings Performance Contracts (ESPCs) and Texas State Energy Conservation Office (SECO).

The departments and funds that participate in the energy conservation programs include in their annual budgets amounts for their portion of the loan repayments under the programs; those amounts should be transferred to the General Fund for purposes of making the payments.  However, in the adopted FY2018 budget those payments, including a $617,936.00 contribution from the General Fund, were appropriated in the General Debt Service Fund instead.

Adoption of the attached ordinances will correct the earlier error and the payment centers used for the energy conservation loan obligations, effectively moving the participating department/fund's transfer revenues and the loan-payment expense from the General Debt Service Fund to the General Fund.  Because the General Fund's contribution was originally appropriated as a transfer out, the ordinance associated with the first recommendation also reallocates that amount to a loan payment instead of a transfer.

Accounting entries will be made to move year to date transfers allocated for the debt service payments from the General Debt Service Fund to the General Fund.

Approval of this M&C will result in the revised adopted Fiscal Year 2018 budget reflecting correct amounts and participating funds in a manner consistent with the debt service schedule for these programs.  To prevent future inaccuracies, the Department of Finance is coordinating with the Budget Office to ensure future allocations, transfers and payments are budgeted and paid for in accordance with each obligation's adopted debt service schedules.

This M&C does not request approval of a contract with a business entity.