775-353-5555
431 Prater Way Sparks, NV United States
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EN 
Sparks City Council Meeting 1/14/2013 2:00:00 PM
Monday, January 14, 2013 2:00 PMSparks Council Chambers, 745 4th Street, Sparks, NV
Consent Items: 5.5
Title: Consideration and possible adoption of Resolution No. 3232 to augment the FY 12/13 Capital Projects and Special Revenue Funds budgets of the City of Sparks to provide budget for capital projects approved, but not completed in FY 11/12.
Petitioner/Presenter: Stacie Hemmerling, Budget Administrator/Stacie Hemmerling, Budget Administrator
Recommendation: That Council adopt the resolution as recommended by staff.
Financial Impact: $3,731,742 increase to FY 12/13 appropriations in various Capital Projects Funds and in the Muni Court Admin Assessment Special Revenue Fund.
Business Impact (Per NRS 237):
A Business Impact Statement is not required. This is a rule but does not impose a direct and significant economic burden on a business, or directly restrict the formation, operation or exemption of a business.
A Business Impact Statement is not required. This is a rule but does not impose a direct and significant economic burden on a business, or directly restrict the formation, operation or exemption of a business.
Agenda Item Brief: This item will allow for the re-appropriation of prior year budget authority for capital improvement projects that were approved in FY 11/12, but not completed. It will also provide budget authority to cover a higher than expected bid on the Golden Eagle Little League Park project. The procedures and requirements for budget augmentations are outlined in NRS 354.598005 and NAC 354.410. The augmentation request meets those requirements.
Background: Certain capital projects were approved on the FY 11/12 Capital Improvement Plan (CIP), but were not completed in FY 11/12, and the budget authority lapsed. The FY 12/13 budget will be augmented to re-appropriate those funds. See Attachment A for a list of the specific projects. In addition to this routine budget augmentation, there is another augmentation that needs to be made for Golden Eagle Little League Field Expansion Project. Construction costs on this project came in higher than expected. On 11/13/12, the Council approved a bid award to West Coast Contractors of Nevada, Inc. in the amount of $1,259,476. This put the project at $441,600 over the amount originally approved on the FY 11/12 CIP. The bid award staff report outlined that the overage would come from a budget augmentation of $441,600 in addition to the routine augmentation to re-appropriate the original funding. The attached resolution includes this additional $441,600.
Analysis: 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 and an opening balance which is larger than anticipated in a Special Revenue Fund. Now that the FY 11/12 audit is complete, we have determined that sufficient resources are available for this augmentation. To augment the budgets, NRS 354.598005 requires the governing board adopt a resolution providing for the augmentations. NAC 354.420 requires a “Revised Revenue Schedule” (included as Attachment B1 though B8 with this agenda item) be submitted along with the resolution to the State of Nevada Department of Taxation. In order to complete these previously approved CIP projects and not violate NRS budgeting requirements, it is necessary to augment the FY 12/13 budget. Resources are available in the appropriate funds. Attached is a resolution to augment the City’s Capital Projects funds and one Special Revenue Fund (Muni Court Admin Assessment Fund). Augmentation of the 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, 2013.
Alternatives: Council could decide not to adopt the resolution to augment the FY 12/13 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 FY 12/13 budget and provide necessary appropriations for the previously approved, prior year CIP projects.
Recommended Motion: I move to adopt resolution No. 3232 to augment the FY 12/13 Capital Projects Funds and Special Revenue Fund budgets
Attached Files:
FY13 bgt augmentation Attachment B1-B8.pdf FY13 bgt augmentation staff report attachment A.pdf FY13 Resolution - PY CIP augmentation.pdf
