2012 9:00:00 AM

Tuesday, May 15, 2012 9:00 AM
City Council Chambers, Legislative Building, 745 Fourth St, Sparks, NV

General Business: 6.1

Title: Consideration and possible adoption of the Final budget for the City of Sparks for fiscal year 2012-2013.

Petitioner/Presenter: Shaun D. Carey P.E., City Manager/Jeff Cronk, CPA, Financial Services Director

Recommendation: That the City Council adopt the final budget for fiscal year 2012-2013 as directed by Council and prepared by staff.

Financial Impact: The attached Nevada Department of Taxation’s required document will establish the final budget for fiscal year 2012-2013, and aligns with the City Manager’s recommendations and Council adjustments as approved by City Council on April 23, 2012.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: In accordance with NRS 354.598, the Council must adopt a Final budget for the City of Sparks on or before June 1, 2012. The budget must be filed with the Department of Taxation in accordance with specific instructions for categorizing revenue and expenditures, and must be presented using prescribed filing forms and formats. The Financial Services Department believes the attached document fully complies with those requirements as established by the Department of Taxation.

Background: The Department of Taxation has reviewed the City’s tentative budget for fiscal year 2012-2013, and has issued a statement indicating that the City’s tentative budget is in compliance as filed. Approval of the attached final budget document establishes the fiscal year 2012-2013 budget for all the Funds that are utilized by the City. The final budget, as presented today, was determined by modifying the tentative budget to include 1) the City Manager recommendations which were approved by City Council on April 23, 2012; and 2) any additional direction and adjustments received from Council on April 23, 2012. The attached budget document also reflects the budget authority for capital improvement activities according to the City’s Capital Improvement Plan (CIP) as approved by Council on April 23, 2012, including subsequent adjustments to the CIP as presented to Council on May 14, 2012. According to direction received from Council on April 23, 2012, the following adjustments to the City Manager’s budget recommendations are now included in the attached Final Budget document for fiscal year 2012-2013: • Three additional Police Officer positions (General Fund); • One additional Code Enforcement Officer position (General Fund); • Not committing any money to the Stabilization Fund ($200k was originally recommended by the City Manager, and results in budget savings for the General Fund) In addition, subsequent to the Council meeting on April 23, 2012, the Truckee Meadows Regional Planning Agency Governing Board approved their fiscal year 2012-2013 budget that included a decreased contribution from the City of Sparks by about $45,000 (approximately down from $250,000 to $205,000). The effect of these changes as outlined above to the City Manager’s budget recommendations is expected to result in an unrestricted ending fund balance within the General Fund equal to 8.1% of expenditures for fiscal year 2012-2013. This is about $125,000 under the fiscal policy goal of 8.3%. A General Fund budget summary sheet showing actual and estimated revenues, expenditures, transfer activity, and fund balances for fiscal year 2011 through fiscal year 2014 is included for review. This sheet is a summary reflecting the fiscal year 2012-2013 General Fund final budget being presented today for approval.

Analysis:

Alternatives: Council could choose to approve the Final budget, as presented today, for fiscal year 2012-2013. 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 before June 1, 2012. If Council does not adopt the final budget by that date, the tentative budget automatically becomes the budget for fiscal year 2012-2013. 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, 2012, 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.

Recommended Motion: I move to adopt the final budget for the City of Sparks, as presented today, for fiscal year 2012-2013.

Attached Files:

FY13 Final Budget - City.pdf

General Fund Summary_FY '13 Final Budget_5-15-12.pdf

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