Approval of the attached final budget document establishes the fiscal year 2017-2018 budget for all the Funds that are utilized by the City.

The final budget, as presented today, is virtually identical to the City Manager’s Budget Recommendations presented to Council on April 24, 2017, with the exception of a few immaterial clean-up items discovered during the preparation of the final document and applicable adjustment to the Funds related to the Capital Improvement Plan (CIP) changes listed below:

1. The Electric and Gas Franchise Fee shift from Road Fund (1401) to Parks and Rec Project Fund (1402) which was originally shown in all five years of the CIP, is now only in year one (FY18).  The revenue shift was proposed in an effort to fund the replacement of aging artificial field turf at Golden Eagle Regional Park.  Council directed staff to make this revenue shift effective for one year only while alternative funding sources for the artificial field turf replacement are explored.
   1. For purposes of clarification, it is important to note that the amounts of Electric and Gas Franchise fee revenues listed within the proposed budget for each Fund reflect estimated receipts assuming Council approves amending the existing Franchise Fee agreement that distributes the 5% fee assessment.  Once Council approves the proposed change to the Franchise Fee agreement, the resulting fee distribution will be 2% to the General Fund, 2% to the Parks and Rec Project Fund, and 1% to the Road Fund.  The fiscal effect of the Franchise Fee agreement change (which is reflected in the proposed FY18 Budget) would entail moving 1% fee assessment from the Road Fund to the Parks and Rec Project Fund.  The proposed change to the Franchise Fee agreement will be presented to Council at a future date.
2. A $150K project was added to Victorian Square Room Tax Fund (1415) for Public Art for Victorian Square as recommended by the Sparks Tourism Facility and Revitalization Steering Committee.

Within the attached budget document is a letter from the Financial Services Director titled “Budget Message” that is intended to provide an overview of the fiscal year 2017-2018 budget.  Included in this budget message is information concerning all Funds maintained by the City with emphasis placed upon the final budget outcomes within the General Fund.

Council could choose to approve the Final budget, as presented today, for fiscal year 2017-2018.

Council could request changes be made and approve the budget with changes.

Council could choose not to approve the presented budget and instead adopt by default the tentative budget.  Per NRS 354.598, Council must adopt a Final budget for the City by June 1, 2017.  If Council does not adopt the final budget by that date, the tentative budget automatically becomes the budget for fiscal year 2017-2018.  If the budget is adopted by default, the Council may not reconsider the budget without express approval of the Department of Taxation.

Adjustment to the final budget, as adopted by Council by June 1, 2017, can be made to accommodate events during the fiscal year which may affect revenue and expenditure assumptions used in the formulation of the final budget.  If adjustments are necessary due to Legislative actions, an amended budget must be filed within 30 days after the close of the legislative session.

I move to adopt the final budget for the City of Sparks for fiscal year 2017-2018 as presented.