Current projections show that FY18 expenses for various professional services will exceed budget in the Development Services Enterprise Fund by approximately $800,000.  The main areas in need of additional appropriations:

• Outside fire plan review ($40K)
• Code 3 software for Fire ($40K)
• Fiscal impact study ($71K)
• On-call inspection and testing ($49K)
• Surveying ($20K)
• Transcription services ($25K)
• Testing and inspection for La Posada widening ($150K)
• Temporary services in building permits ($80K)
• Building inspection services ($200K)
• Public Works design manual ($50K)
• Master hydro study for Spanish Springs ($75K)

In order to avoid a budget violation as outlined in NRS 354.626, we must augment this Fund by $800,000 to cover the greater than anticipated professional services expenses.

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 Development Services Enterprise Fund.

To augment the budget, NRS 354.598005 requires the governing board adopt a Resolution providing for the augmentation.  

Resources are available in the Fund due to increases in building permit and plan check revenues.  In fact, net assets are projected to grow by $990K in FY18 even with the increased expenses listed above.  

Attached is a Resolution to augment the City’s Development Services Enterprise Fund.

Augmentation of the Enterprise and Internal Service Fund budgets will be effective upon Council approval of the Resolution.

Council could decide not to adopt the Resolution to augment the FY18 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 FY18 budget and provide necessary appropriations for the projected professional services costs.

I move to adopt Resolution No. 3332 to augment the FY18 Development Services Enterprise Fund budget.