ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT of an ORDINANCE AMENDING the CITY OF PEORIA BUDGET for FISCAL YEAR 2014 Relating to the Sweep of CAPITAL PROJECT FUNDS and Transfer of these Funds to the GENERAL FUND in the AMOUNT of $3,685,165
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BACKGROUND: As part of the budget presentation on October 28, 2014, staff recommended the sweep of capital project funds and the transfer of these funds to the General Fund. The projects swept did not impact infrastructure improvements. The recommendation came as a result of decline in sales tax revenues in the General Fund. With the sweep of these funds into the General Fund, it is anticipated that the General Fund will reflect an increase in fund balance for fiscal year 2014. The City's Financial Policies establishes a minimum Unassigned Fund Balance equal to 25% of General Fund expenditures. As of December 31, 2013, the Unassigned Fund Balance equaled 20.6% of the General Fund expenditures.
FINANCIAL IMPACT: Capital projects in the amount of $3,685,165 will be reduced and the funds will be transferred to the General Fund.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: Capital projects in the amount of $3,685,165 will be reduced and the funds will be transferred to the General Fund.
IMPACT IF DENIED: Project funds will not be reduced and the funds will not be transferred to the General Fund. As a result, the General Fund will reflect a deficit for the fiscal year. The deficit will reduce the Unassigned Fund Balance.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Finance