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Home My WebLink About225-22 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 225-22 File Number: 2022-0862 RECOGNIZE INTEREST REVENUE FOR SALES & USE TAX CAPITAL IMPROVEMENT AND REFUNDING BONDS SERIES 2019: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT 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 $393,336.93 and reconciling prior year reappropriations in the Fire Bonds fund for a total budget adjustment of $362,676.00. PASSED and APPROVED on 10/4/2022 Approved: Attest: 1 Lioneld Jor , Mayor Kara Paxton, City Clerk Treasurer V � 111f}Illl►1 =�•• �'' =J' •.i .p . Page 1 folMd on 1Q/5122 ' Jilt - V I City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0862 Agenda Date: 10/4/2022 Version: 1 Status: Passed In Control: City Council Meetinq Agenda Number: A.8 File Type: Resolution RECOGNIZE INTEREST REVENUE FOR SALES & USE TAX CAPITAL IMPROVEMENT AND REFUNDING BONDS SERIES 2019: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT 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 $393,336.93 and reconciling prior year reappropriations in the Fire Bonds fund for a total budget adjustment of $362,676.00. City of Fayetteville, Arkansas Page 1 Printed on 101512022 Kevin Springer Submitted By City of Fayetteville Staff Review Form 2022-0862 Legistar File ID 10/04/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/12/2022 BUDGET & INFORMATION MGMT (133) 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/B. 46xx.860.7000-4707.46 Account Number 46xxx.7000 Project Number Budgeted Item? Yes Does item have a cost? No Budget Adjustment Attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: 46xx - Various 2019 Bond Project Funds Fund Various 2019 Bond Projects Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 847,992.00 $ 1,241,328.93 a (393,336.93) $ 393,337.00 1.07 V20210527 Previous Ordinance or Resolution # Approval Date: CITY OF FAYETTEVILLE %PF ARKANSAS MEETING OF OCTOBER 4, 2022 TO: Mayor and City Council THRU: Paul A Becker, Chief Financial Officer FROM: Kevin Springer, Budget Director DATE: September 12, 2022 CITY COUNCIL MEMO 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. Since 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. The total amount of revenue recognized was $847,992 and was approved at the following City Council meetings. • November 16, 2021: $315,000 in Police 2019 Bond Project Interest. • December 21, 2021: $65,623 in Drainage 2019 Bond Project Interest. • February 1, 2022: $165,249 in Arts Corridor 2019 Bond Project Interest. • August 2, 2022: $302,120 in Streets 2019 Bond Project Interest. Currently across all bond projects, a total of $1,241,328.93 has been received in Interest revenue earnings leaving $393,336.93 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 so that the funds may be used on various bond project expenses. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: The requested budget adjustment will recognize $393,337 in interest revenue; and due to a reconciliation of prior year reappropriations in the Fire Bonds the expense budget will be reduced by $30,661 for a total budget adjustment of $362,676. 2019 Bonds (Series 2019) - Interest Received Fund 4502 Streets Project 2019 Bonds Interest Already Interest Not 0 Total Recognized Recognized 352,923.51 302,120 50,804 4503 Trails Project 2019 Bonds 21,026.46 - 21,026 4504 drainage Projects 2019 Bonds 80,894.75 65,623 15,272 4605 Parks Project 2019 Bonds 88,549.35 - 88,548 4505 Economic Development 2019 Bonds 37,082.48 - 37,083 4507 City Facilities 2019 Bonds 4,251.94 - 4,262 4509 Arts Corridor 2019 Bonds 199,217.97 165,249 33,969 4509 Police Projects 2019 Bonds 362,104.17 315,000 47,104 4610 Fire Projects 2019 Bon ds 95,269.30 - 95,269 Total Attachments: Budget Adjustment 1,241,428.93 947,992 393,337 PY Buffet Recon Adjustment - 50,804 21,026 15,272 88,549 - 37,083 - 4,262 - 33,969 - 47,104 (30,661) 64,608 2 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division /Org2 Non -Departmental (800) 2022 Requestor: Kevin Springer I Adjustment Number BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: The requested budget adjustment will recognize $393,337 in interest revenue; and due to a reconciliation of prior year reappropriations in the Fire Bonds the expense budget will be reduced by $30,661 for a total budget adjustment of $362,676. RESOLUTION/ORDINANCE COUNCIL DATE: 10/4/2022 LEGISTAR FILE ID#: 2022-0862 KP,vLwSpv'i+� 911212022 2:22 PM Budget Director Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL 362,676 362,676 v.20220818 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 4602.860.7000-4707.46 - 50,804 46020 7000 RE Interest - 2019 Project Funds 4603.860.7000-4707.46 - 21,026 46030 7000 RE Interest - 2019 Project Funds 4604.860.7000-4707.46 - 15,272 46040 7000 RE Interest - 2019 Project Funds 4605.860.7000-4707.46 - 88,548 46050 7000 RE Interest - 2019 Project Funds 4606.860.7000-4707.46 - 37,082 46060 7000 RE Interest - 2019 Project Funds 4607.860.7000-4707.46 - 4,262 46070 7000 RE Interest - 2019 Project Funds 4608.860.7000-4707.46 - 33,969 46080 7000 RE Interest - 2019 Project Funds 4609.860.7000-4707.46 - 47,104 46090 7000 RE Interest - 2019 Project Funds 4610.860.7000-4707.46 - 95,269 46100 7000 RE Interest - 2019 Project Funds 4602.860.7999-5899.00 50,804 - 46020 7999 EX Unallocated - Budget 4603.860.7999-5899.00 21,026 - 46030 7999 EX Unallocated - Budget 4604.860.7999-5899.00 15,272 - 46040 7999 EX Unallocated - Budget 4605.860.7999-5899.00 88,548 - 46050 7999 EX Unallocated - Budget 4606.860.7999-5899.00 37,082 - 46060 7999 EX Unallocated - Budget 4607.860.7999-5899.00 4,262 - 46070 7999 EX Unallocated - Budget 4608.860.7999-5899.00 33,969 - 46080 7999 EX Unallocated - Budget 4609.860.7999-5899.00 47,104 - 46090 7999 EX Unallocated - Budget 4610.860.7999-5899.00 95,269 - 46100 7999 EX Unallocated - Budget 4610.860.7000-4999.97 - (30,660) RE Use Fund Balance - Prior 4610.860.7999-5899.00 (30,660) - 46100 7999 EX Unallocated - Budget H:\Budget Adjustments\2022_Budget\CITY COUNCIL\10-04-22\2022-0862 BA Recognize Bond Project Interest.xlsm 1 of 1