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HomeMy WebLinkAbout41-24 RESOLUTIONFile Number: 2024-1672 113 West Mountain Street Fayetteville , AR 72701 (479) 575-8323 Resolution: 41-24 2019 PHASE I BONDS (BUDGET ADJUSTMENT): A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $308 ,612 .00 RECOGNIZING INTEREST REVENUE GENERATED FROM THE SALES & USE TAX CAPITAL IMPROVEMENT AND REFUNDING BONDS SERIES 2019 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section I : That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution , recognizing revenue generated from interest paid on funds for the Sales & Use Tax Capital Improvement and Refunding Bonds Series 2019 in the amount of $351 ,171.00. PASSED and APPROVED on February 6 , 2024 Page 1 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2024-1672 MEETING OF FEBRUARY 6, 2024 TO: Mayor Jordan and City Council THRU: Paul Becker, Chief Financial Officer FROM: Kevin Springer, Budget Director DATE: SUBJECT: Approval of a Budget Adjustment to Recognize Interest Revenue on the 2019 Phase I Bonds. RECOMMENDATION: Staff recommends approval of a budget adjustment to recognize interest revenue earned on the 2019 Phase I Bonds. BACKGROUND: On April 9, 2019, the Citizens voted to authorize Sales Tax Bonds of up to $226,065,000 for various purposes as specified in Ordinance 6126 approved by the City Council. Phase One of the bond improvements was approved at the June 4, 2019, City Council meeting which resulted in the final issuance of $127,595,000 par value worth of bonds. From the time of issuance, each bond earns interest revenue and when those additional funds are needed, a budget adjustment is prepared to recognize the interest earned. Currently, across all bond projects, a total of $2,342,630.65 has been received in interest revenue earnings and $1,991,446 was recognized, leaving $351,171 in revenue to be recognized. DISCUSSION: This item is to recognize the interest paid to date on the Sales and Use Tax Capital Improvement and Refunding Bonds, Series 2019A/B so that the funds may be used on various bond project expenses. BUDGET/STAFF IMPACT: The requested budget adjustment will recognize $351,171 in interest revenue. Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov ATTACHMENTS: SRF (#3), BA (#4) Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2024-1672 Approval of a Budget Adjustment to Recognize Interest Revenue on the 2019 Phase I Bonds. A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $308,612.00 RECOGNIZING INTEREST REVENUE GENERATED FROM THE SALES & USE TAX CAPITAL IMPROVEMENT AND REFUNDING BONDS SERIES 2019 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, recognizing revenue generated from interest paid on funds for the Sales & Use Tax Capital Improvement and Refunding Bonds Series 2019 in the amount of $351,171.00. City of Fayetteville Staff Review Form 2024-1672 Item ID 2/6/2024 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Kevin Springer 1/12/2024 BUDGET & INFORMATION MGMT (133) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a budget adjustment to recognize interest revenue earned on the Sales and Use Tax Capital Improvement and Refunding Bonds, Series 2019A. Budget Impact: 46xx.860.7000-4707.46 46xx - Various 2019 Bond Project Funds Account Number Fund 46xxx.7000 Various 2019 Bond Projects Project Number Project Title Budgeted Item?Yes Total Amended Budget $1,991,466.00 Expenses (Actual+Encum)$2,342,630.65 Available Budget $(351,164.65) Does item have a direct cost?No Item Cost $- Is a Budget Adjustment attached?Yes Budget Adjustment $351,171.00 $32.00 Remaining Budget $6.35 V20221130 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division /Org2 BUDGET & INFORMATION MGMT (133) Adjustment Number 2024 Requestor:Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: The requested budget adjustment will recognize $351,171 in interest revenue for the 2019 Phase I Bonds. COUNCIL DATE:2/6/2024 ITEM ID#:2024-1672 Kevin Springer 1/18/2024 1:58 PM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2024112TOTAL351,171 351,171 Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 4602.860.7000-4707.46 -135,961 46020 7000 RE Interest - 2019 Project Funds 4603.860.7000-4707.46 -2,062 46030 7000 RE Interest - 2019 Project Funds 4604.860.7000-4707.46 -70,230 46040 7000 RE Interest - 2019 Project Funds 4605.860.7000-4707.46 -6,747 46050 7000 RE Interest - 2019 Project Funds 4606.860.7000-4707.46 -118,159 46060 7000 RE Interest - 2019 Project Funds 4607.860.7000-4707.46 -1,332 46070 7000 RE Interest - 2019 Project Funds 4608.860.7000-4707.46 -2,691 46080 7000 RE Interest - 2019 Project Funds 4609.860.7000-4707.46 -7,201 46090 7000 RE Interest - 2019 Project Funds 4610.860.7000-4707.46 -6,788 46100 7000 RE Interest - 2019 Project Funds 4602.860.7999-5899.00 135,961 46020 7999 EX Unallocated - Budget 4603.860.7999-5899.00 2,062 46030 7999 EX Unallocated - Budget 4604.860.7999-5899.00 70,230 46040 7999 EX Unallocated - Budget 4605.860.7999-5899.00 6,747 46050 7999 EX Unallocated - Budget 4606.860.7999-5899.00 118,159 -46060 7999 EX Unallocated - Budget 4607.860.7999-5899.00 1,332 -46070 7999 EX Unallocated - Budget 4608.860.7999-5899.00 2,691 -46080 7999 EX Unallocated - Budget 4609.860.7999-5899.00 7,201 -46090 7999 EX Unallocated - Budget 4610.860.7999-5899.00 6,788 -46100 7999 EX Unallocated - Budget 1 of 1