Discussion and possible action to approve the FY2023 Second Quarter Budget Adjustments and FY2023 First Quarter Chargebacks.

The attached schedules list FY2023 Second Quarter Budget Adjustments and FY2023 First Quarter Chargebacks, which under current Council and/or Administrative policy require Council approval. These adjustments have been reviewed by the Finance and Budget Department and are submitted to Council for approval.  The following listing describes the budget adjustments by category.

FY2023 Second Quarter Budget Adjustments Summary:

Carryover - Capital: The adjustments in this category are for two projects approved in FY2022 but not yet completed by June 30, 2022.  The projects include the trailhead development agreement for 83^rd Avenue and Happy Valley Rd. and a traffic signal located at Vistancia Blvd. and Ridgeline Rd.  The Carryover - Capital adjustments total $760,000.

Carryover - Operating: The adjustments in this category include carryover in various departments for items and projects approved in FY2022 but not yet received or completed by June 30,2022.  The Carryover – Operating adjustments total $128,988.

Grants and Outside Sources: The adjustments in this category represent Police Department grant awards.  The department received additional funding from the Governor’s Office of Highway Safety and the Bulletproof Vest Partnership.  The Grants and Outside Sources adjustments total $31,316.

Carryover - Grants and Outside Sources: The adjustments in this category include three (3) State of Arizona FY2022 grant awards with remaining funds outstanding at June 30, 2022.  The Carryover – Grants and Outside Sources adjustments total $967,233.

Clean-Up: The adjustments in this category include a reallocation of G.O. bond proceeds between funds, a reclassification of budget authority from the Sports Complex Fund to the General Fund and Prop 302 Grant Fund, and deletions of duplicate entries. The Clean-Up adjustments total $26,921,462.

Chargebacks and Arts: The items in this category represent an administrative mechanism for charging capital projects for project management and procurement services provided by city staff, as well as the one percent (1%) charge for public art.  Each quarter, budget authority is moved to individual capital projects to be charged.  The Chargebacks and Arts adjustments total $806,742.

No previous action has been taken on these budget adjustments and carryovers.

Finance and Budget Department staff recommends approval of the attached budget adjustments.

These budget adjustments and carryovers have no net fiscal impact to the city. The budget adjustments are to provide expenditure authority for funds that have been received, i.e., through grants, IGAs, and/or reimbursements. Other budget adjustments are to move existing appropriation to the proper accounts.