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HomeMy WebLinkAboutFiscal Year 2019/20 Year End Budget Adjustments and Inter-Fu 771,,tI/ h Ito✓ED 9- 0 _ City of Huntington Beach File #: 20-1943 MEETING DATE: 10/19/2020 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Dahle Bulosan, Chief Financial Officer Subiect: Fiscal Year 2019/20 Year End Budget Adjustments and Inter-Fund Transfers Statement of Issue: The Finance Department is currently undergoing the year-end closing process for Fiscal Year (FY) 2019/20, which began on July 1, 2019, and ended on June 30, 2020. Certain technical adjustments and fund transfers need to be made to reconcile the budget with actual expenditures incurred, and to comply with auditing, actuarial, accounting, or legal requirements. City Council authorization is requested to perform these reconciliations in order to properly close FY 2019/20. There are sufficient revenues, available cash, and/or fund balances to support these adjustments. Financial Impact: 1. Inter-Fund Transfers_(Various Funds): Authorization is requested for inter-fund transfers totaling $244,884 from various funds to reconcile budget and close out fund account (Attachment 1). 2. Appropriation Increases_ (Various Funds): Appropriation increases totaling $1,612,000 are requested to reconcile the budget with actual expenditures incurred in two funds (Attachment 1). Recommended Action: A) Approve the year-end inter-fund transfers for the FY 2019/20 Revised Budget in the Funds and by the amounts contained in Attachment 1; and, B) Increase appropriations for the FY 2019/20 Revised Budget by $1,612,000 in the Funds and amounts contained in Attachment 1 to reconcile the budget with actual expenses incurred. Alternative Action(s): Do not approve the recommendation and direct staff accordingly. Analysis: The FY 2019/20 Budget was adopted by the City Council on June 3, 2019, for the fiscal year City of Huntington Beach Page 1 of 2 Printed on 10/14/2020 powered is LegistarW File #: 20-1943 MEETING DATE: 10/19/2020 beginning July 1, 2020. The Finance Department has compiled recommended budget adjustments to cover additional costs and/or provide appropriations necessary to expend funds that have been received for specific purposes. The requested adjustments will be funded by available revenue or fund balances within each distinct Fund. Inter-Fund Transfers and Budget Adjustments Technical year-end budget adjustments to the FY 2019/20 Revised Budget are requested to align appropriations in certain funds with actual expenditures incurred through June 30, 2020, as actual expenditures cannot exceed the appropriation amounts contained in the Revised Budget. Adjustments are also required to ensure compliance with GAAP, GASB, and other regulatory, contractual, or legal requirements. Please note any appropriation increases are fully offset by commensurate amounts of revenues, available cash, or fund balances in each Fund. 1. Fire JPA (704�: An appropriation increase of $12,000 is requested to fund Training Center improvements approved by the CNOA Board of Directors. 2. Retirement Supplemental (703): An appropriation increase of $1.6 million is requested to align budget with actual required supplemental retirement benefit payments. 3. Debt Service Funds (406 and 41 W. An appropriation increase of $65,847 is requested to reconcile the budget with actual debt service payments made in FY 2019/20 for Mello Roos and the Bella Terra parking structure. 4. Grants 239 and 1222): An appropriation increase of $179,037 is requested to increase the appropriation to the level of the grants and/or funds received, and to reconcile funding with the Integrated Disbursement and Information Systems (IDIS) for CDBG Program and to reconcile and close the Hazard Mitigation Grant Program. Environmental Status: Not applicable. Strategic Plan Goal: Enhance and maintain high quality City services Enhance and maintain the infrastructure. Strengthen long-term financial and economic sustainability. Enhance and modernize public safety service delivery. Attachment(s): 1. Fiscal Year 2019/20 Year-End Budget Adjustment by Fund City of Huntington Beach Page 2 of 2 Printed on 10/14/2020 powered$•Legistar" ATTACHMENT 1 Fiscal Year 2019/20 Year-End Budget Adjustment by Fund APPROPRIATION INCREASE: Dept Fund Fund Name Amount Fire 704 Fire JPA 12,000 Finance 703 Retirement Supplemental 1,600,000 Subtotal 1,612,000 APPROPRIATION AND TRANSFER INCREASE: Dept From Name Amount To Fund Name Public Works 1222 Hazard Mitigation Grant 20,029 314 Infrastructure Comm Development 239 CDBG 159,008 100 General Fund Non-Dept 406 Debt Svc-Mello Roos 6,928 100 General Fund Non-Dept 410 Debt Svc-Bella Terra 58,919 711 Parking Structure-Bella Terra Subtotal 244,884 TOTAL 1,856,884 84