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Home My WebLink About94-23 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 94-23 File Number: 2023-626 INTEREST BUDGET ADJUSTMENT TO 2019 PHASE I BONDS: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $463,032.00 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 $463,032.00. PASSED and APPROVED on April 18, 2023 Approved: Page 1 Attest: • ��.`• �ITy�.4y ■. Kara axton, City lerk �rcasur:: er ® 1T� I'/41 ' rU w ■rfvri, f , 111N j O,N ti CITY OF POW, FAYETTEVILLE ARKANSAS MEETING OF APRIL 18, 2023 CITY COUNCIL MEMO 2023-626 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. The total amount of revenue recognized was $1,292,267 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. • October 4, 2022: $393,337 in all 2019 Bond Projects. • December 20, 2022: $50,939 in Police 2019 Bond Project Interest. Currently, across all bond projects, a total of $1,728,298.20 has been received in interest revenue earnings, leaving $463,031,20 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. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: The requested budget adjustment will recognize $436,032 in interest revenue. 2019 Bonds (Series 2019) - Interest Received vs Budgeted Interest rpmo Already Interest Not FUNDIGUACCOUNT Recognized Actuals Recognized 04602 Streets Project 2019 Bonds 352,924 S43,04S.47 (190,121.47) B04603 Trails Project 2019 Bonds 21,026 23AS7.87 (2,461.97) II4604 Drainage Projects 2019 Bonds 80,895 130,635.21 (49,740.21) 334605 Parks Project 2019 Bonds 88,548 92,128.02 (3,580.02) 814606 Economic Development 2019 Bonds 37,092 88,174.97 (51,092.97) (04507 City Facilities 2019 Bonds 4,262 4,808.09 (546.09) Bt4608 Arts Corridor 2019 Bonds 199,218 280,812.67 (81,594.67) W4609 Police Projects 2019 Bonds 413,043 447,002.14 (33,959.14) 14610 Fire Projects 2019 Bonds 95,269 118,203.76 (22,934.76) Grand Total 1,292,267 1,728,298.20 (436,031.20) ATTACHMENTS: 2023-626 SRF - Bond 2019 Interest, 2023-626 BA - Bond 2019 Interest Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 - Legislation Text File #: 2023-626 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 $463,032.00 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 $463,032.00. Page 1 Kevin Springer Submitted By City of Fayetteville Staff Review Form 2023-626 Item ID 4/18/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 3/28/2023 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. 46xx.860.7000-4707.46 Account Number 46xxx.7000 Project Number Budgeted Item? Yes Does item have a direct cost? No Is a 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 Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Project Title $ 1,292,267.00 $ 1,728,298.20 (436,031.20) $ 436,032.00 Previous Ordinance or Resolution # Approval Date: 0.80 V20221130 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number BUDGET &INFORMATION MGMT (133) /Org2 2023 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: The requested budget adjustment will recognize $436,032 in interest revenue for the 2019 Phase I Bonds. COUNCIL DATE: 4/18/2023 ITEM ID#: 2023-626 Kevin Springer 3/26'/2023 3: qS P/YI Budget Division Date D - (City Council) TYPE: JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED: TOTAL 436,032 436,032 v.2023323 increase/ (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 4602.860.7000-4707.46 - 190,122 46020 7000 RE Interest - 2019 Project Funds 4603.860.7000-4707.46 - 2,462 46030 7000 RE Interest - 2019 Project Funds 4604.860.7000-4707.46 - 49,740 46040 7000 RE Interest - 2019 Project Funds 4605.860.7000-4707.46 - 3,580 46050 7000 RE Interest - 2019 Project Funds 4606.860.7000-4707.46 - 51,093 46060 7000 RE Interest - 2019 Project Funds 4607.860.7000-4707.46 - 546 46070 7000 RE Interest - 2019 Project Funds 4608.860.7000-4707.46 - 81,595 46080 7000 RE Interest - 2019 Project Funds 4609.860.7000-4707.46 - 33,959 46090 7000 RE Interest - 2019 Project Funds 4610.860.7000-4707.46 - 22,935 46100 7000 RE Interest - 2019 Project Funds 4602.860.7999-5899.00 190,122 - 46020 7999 EX Unallocated - Budget 4603.860.7999-5899.00 2,462 - 46030 7999 EX Unallocated - Budget 4604.860.7999-5899.00 49,740 - 46040 7999 EX Unallocated - Budget 4605.860.7999-5899.00 3,580 - 46050 7999 EX Unallocated - Budget 4606.860.7999-5899.00 51,093 - 46060 7999 EX Unallocated - Budget 4607.860.7999-5899.00 546 - 46070 7999 EX Unallocated - Budget 4608.860.7999-5899.00 81,595 - 46080 7999 EX Unallocated - Budget 4609.860.7999-5899.00 33,959 - 46090 7999 EX Unallocated - Budget 4610.860.7999-5899.00 22,935 - 46100 7999 EX Unallocated - Budget 1 of 1