Rec & Parks District 3 (1408) $146,037 augmentation

On October 13, 2014, Council approved a refund of Residential Construction Tax to Sparks Development, LLC in the amount of $146,037.  This refund resulted in a current year (FY15) expenditure which was not budgeted.  In order to avoid a budget violation as outlined in NRS 354.626, we must augment this fund to cover the unbudgeted expenditure.

Impact Fee Service Area 1 Fund (1210) $60,000 augmentation

All Public Facility impact fees collected in Impact Fee Service Area 1 are remitted to Red Hawk Land Company as reimbursement for Fire Station #5.  In preparing the FY15 budget we estimated that $60,000 would be collected and remitted and therefore only budgeted $60,000 in revenues and $60,000 in expenditures to cover the remittance.  As of 6/3/15, $95k has been collected and more will likely come in in the next few weeks.  In order to provide sufficient budget authority for the Red Hawk Land Company remittances, we are seeking to augment the FY15 budget of the Impact Fee Service Area 1 Fund (1210) by $60,000.

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.  As evidenced in the FY14 audited ending fund balance of the Rec and Parks District 3 Fund (a Capital Projects Fund), sufficient resources are available for this augmentation.  Available resources also include revenues in excess of those budgeted in a Special Revenue Fund.  Therefore, due to higher than expected revenues collected, sufficient resources are available for this augmentation in the Impact Fee Service Area 1 Fund (a Special Revenue Fund).

To augment the budget, NRS 354.598005 requires the governing board adopt a resolution providing for the augmentation.  This requirement applies to all fund types.  NAC 354.420 requires a “Revised Revenue Schedule” (included as Attachments A and B with this agenda item) be submitted along with the resolution to the State of Nevada Department of Taxation.

Attached is a resolution to augment the City’s Rec & Parks District 3 and Impact Fee Service Area 1 Funds.

Augmentation of the Rec & Parks District 3 and Impact Fee Service Area 1 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, 2015.

Council could decide not to adopt the resolution to augment the FY15 budget.  This could cause expenditures in the funds to exceed appropriations, and would therefore be a violation of NRS 354.626.  The violation would be noted in the audited financial statements.

Council could decide to adopt the resolution to augment the FY15 budget and provide appropriations to cover the anticipated overages.

I move to adopt Resolution No. 3283 to augment the FY15 budgets of the Rec & Parks District 3 and Impact Fee Service Area 1 Funds.