Certain capital projects were approved on the FY 11/12 and FY 12/13 Capital Improvement Plan (CIP), but were not completed in FY 11/12 or FY 12/13, and the budget authority lapsed. The FY 13/14 budget will be augmented to re-appropriate those funds. See Attachment A for a list of the specific projects. In addition to this routine budget augmentation, there is another augmentation that needs to be made for street cut repair costs in the Street Cut Special Revenue Fund. Sufficient street cut permit fees were collected in FY 12/13 to cover these costs, but the related street cut repairs will be made in FY 13/14. The FY 13/14 budget needs to be augmented to allow for the expenditures. On 09/09/13, the Council approved a bid award to Sierra Nevada Construction in the amount of $327,007. The amount appropriated in the FY 13/14 budget for street cut repairs was only $150,000. The bid award staff report outlined that the overage would come from a budget augmentation of $177,007.

The provisions of NRS 354.598005(1) govern the procedures and requirements for augmenting or amending a budget; given that anticipated resources available exceed those estimated. Available resources are defined in NAC 354.410, and include unappropriated ending fund balances of Capital Projects Funds and an opening balance which is larger than anticipated in a Special Revenue Fund. Now that the FY 12/13 audit is complete, we have determined that sufficient resources are available for this augmentation.

Per NRS 354.598005(4) and NAC 354.481, an Enterprise Fund or Internal Service Fund may be augmented if “expenses do not cause a deficit in the equity balance of the fund.” This augmentation will not cause a deficit in the equity balance of the Sewer Enterprise Fund. To augment the budgets, NRS 354.598005 requires the governing board adopt a resolution providing for the augmentations. This requirement applies to all fund types. NAC 354.420 requires a “Revised Revenue Schedule” (included as Attachment B1 though B5 with this agenda item) be submitted along with the resolution to the State of Nevada Department of Taxation. This requirement applies only to Governmental Fund Types. Enterprise and Internal Service fund augmentations, per NRS 354.598005(4), do not require the submission to the Nevada Department of Taxation. Therefore, there is no “Revised Revenue Schedule” included for the Sewer Enterprise Fund or the Motor Vehicle Maintenance Internal Service Fund .

In order to complete these previously approved CIP projects and not violate NRS budgeting requirements, it is necessary to augment the FY 13/14 budget. Resources are available in the appropriate funds. Attached is a resolution to augment the City’s Capital Projects funds, one Special Revenue Fund (Muni Court Admin Assessment Fund), one Enterprise Fund (Sewer) and one Internal Service Fund (Vehicle Maintenance). Augmentation of the Governmental Funds’ budgets will be effective upon delivery of an executed copy of the resolution to the Department of Taxation. Delivery must be before June 30, 2014. Augmentation of the Enterprise and Internal Service Fund budgets will be effective upon Council approval of the resolution.