Approval of the attached final budget document establishes the fiscal year 2018-2019 budget for all the Funds that are utilized by the City.

The final budget, as presented today, is essentially identical to the City Manager’s Budget Recommendations presented to Council on April 23, 2018 with the exception of a few immaterial clean-up items discovered during the preparation of the final document, mainly the items listed below?:

1. Electric and Gas Franchise Fee Revenues were evaluated and projections were increased slightly providing additional resources to the General, Road and Parks and Recreation Project Funds. 
2. Sparks FY19 contribution to Regional Planning increased $17K ($5K for operations and $12K for additional hardware/software needs).
3. Sparks General Fund contribution towards the Community Assistance Center (CAC) decreased $15K (from $176K to $162K) due to the higher than expected Community Development Block Grant (CDBG) award which increases the amount the Grant will pay and decreases the amount the General Fund will need to contribute.  The total Sparks contribution to the CAC remains at $284K (General Fund $162K and CDBG $122K)
4. Sewer Fund revenues increased due to some recent large commercial connection fees which increased FY18 estimates for connection fee revenue and increased user fees in FY19.
5. FY18 capital outlay estimates in the Sewer Fund were decreased significantly as additional analysis of funding needed for capital improvement projects which were approved in prior years, revealed that less funding would be needed in FY18.  The lion share of this reduction was related to North Truckee Drain which is nearing completion and will not require additional appropriations.

The items listed above did not change any fiscal policy outcomes from what was presented to Council on April 23, 2018.  FY18 estimated ending fund balance remains at 8.1% and the FY19 budgeted ending fund balance remains at 6.4%.

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 2018-2019 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 2018-2019.

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, 2018.  If Council does not adopt the final budget by that date, the tentative budget automatically becomes the budget for fiscal year 2018-2019.  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, 2018, 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 2018-2019 as presented.