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Appropriation Adjustments to Carryover Unspent Amounts from FY18-19 to FYI 9-20 September 17, 2019 Page 2 The City Council adopts a budget one year at a time, and the City's Charter requires City Council approval for appropriation adjustments. Increasing the current year budget for unspent amounts carried over from the prior year constitutes an appropriation adjustment. A list of requested carryovers is attached to this report (Exhibit 1). The list includes the account, description, amount, and expenditure status. All requests on the list were discussed with City departments and vetted to ensure funds are available and the allocation is non -recurring. Each request on the list includes the amount available one month after the end of FYI 8-19. Staff will continue paying FYI 8-19 invoices through September, and will continue reconciling FY18-19 accounts through October. The FY18-19 ledger will not be final and closed until the financial statements have been audited in November. Therefore, the requested carryovers are "maximum" amounts. The actual amounts processed for carryover will be limited to the available budget once the FYI 8-19 ledger is closed (Exhibit 2). Additionally, a list of projects has been attached (Exhibit 3) for unspent items in the AMES (Addressing Maintenance Enhancing Services) Fund. The FYI 9-20 budget already includes an allocation to re -budget unspent monies; however, that allocation was placed in "Reserve for Appropriations" (Reserve). Staff requests an appropriation adjustment to move the unspent project allocations from the "Reserve" account to the appropriate accounts for expenditure. Unanticipated Revenue - FYI 8-19 Revenue and proposed reclassification/transfers The FY18-19 books have not yet been closed and audited. However, actual receipts to date indicate the General Fund will receive at least $4.0 million more revenue than budgeted for FYI 8- 19. Additional revenue includes but not limited to the following: $2.0 million of tax increment distributed from the Redevelopment Property Tax Trust Fund (primarily related to interest savings from the 2018 tax allocation bond refunding), $1.6 million of various planning and building fee revenue(s), and $0.4 million from paramedic services charges (Exhibit 4). Due to the public demand for service, at this time staff recommends conservatively appropriating $4.0 million (Exhibit 4) of the additional revenue as follows: Amount to Appropriate Program to be funded • $2.0 million Roadway maintenance • $1.0 million Additional youth spending set -aside in the Cannabis Public Benefit Fund • $1.0 million Quality of Life Team (QOLT) activities Once the books are closed and audited, the City Council may review the General Fund balance to determine if any additional amounts should be appropriated. Each year, the City is required to spend General Fund money for roadway maintenance in order to receive restricted revenue for street projects. In addition, there is public demand for various streets to be immedidately repaired. Staff recommends reclassifying up to $2.5 million of FY18-19 roadway expenditures from the Gas Tax Fund to the General Fund to ensure the City has met its 65A-2