M&C Review


COUNCIL ACTION:  Approved on 9/25/2018 - Ordinance Nos. 23412-09-2018 and 23413-09-2018

DATE: 9/25/2018 REFERENCE NO.: **G-19382 LOG NAME: 60IMPACT 2018
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Adopt Appropriation Ordinances Increasing Estimated Receipts and Appropriations in the Amount of $10,144,037.00 in the Water Impact Fee Fund and in the Amount of $4,638,878.00 in the Sewer Impact Fee Fund and Authorize Transfer in the Total Amount of $14,782,915.00 to the Water and Sewer Operating Fund for the Purpose of Paying Debt Associated with Impact Fee-Eligible Projects (ALL COUNCIL DISTRICTS)  

RECOMMENDATION:

It is recommended that the City Council:

  1. Adopt the attached appropriation ordinances increasing estimated receipts and appropriations in the Water Impact Fee Fund in the amount of $10,144,037.00 and in the Sewer Impact Fee Fund in the amount of $4,638,878.00 from impact fees; and

  2. Authorize the transfer to the Water and Sewer Operating Fund in the total amount of $14,782,915.00, $10,144,037.00 from the Water Impact Fee Fund and $4,638,878.00 from the Sewer Impact Fee Fund for the purpose of paying debt associated with impact fee-eligible projects.
 
DISCUSSION:

During the retail cost of service studies for FY2018, it was determined that the use of impact fee revenues could lower the amount of water and sewer service revenue required to balance Fiscal Year 2018 budgeted revenues and expenditures. While Section 35-70.9 (b) of the City Code, "Use of proceeds of impact fee accounts," prohibits the use of impact fees for operating expenses, those proceeds can be used to pay principal and interest on debt associated with projects eligible to be funded by impact fees. This transfer of the total amount of $14,782,915.00, $10,144,037.00 from Water Impact Fee revenue and $4,638,878.00 from Sewer Impact Fee revenue, to the Water and Sewer Operating Fund will be used to pay principal and interest on existing revenue bonds used to fund impact fee-eligible projects.

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

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the current Fiscal Year 2018 operating budget, as appropriated, of the Water and Sewer Operating Fund and Water and Sewer Impact Fee Funds. In the Water Impact Fee Fund, the current unappropriated revenue exists in the amount of $18,466,425.15. After appropriation and transfer of $10,144,037.00 to the Water and Sewer Operating Fund, the unappropriated revenue will be $8,322,388.15.  In the Sewer Impact Fee Fund, the current unappropriated revenue exists in the amount of $10,189,300.76.  After appropriation and transfer of $4,638,878.00 to the Water and Operating Sewer Fund, the unappropriated revenue will be $5,550,422.76.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Chris Harder (5020)
Additional Information Contact:
Jan Hale (8438)

 
 
ATTACHMENTS
  60IMPACT 2018 _56003_AO18_updated_v2.docx
  60IMPACT 2018 _57003_AO18_updated_v2.docx