Title
Consideration of and action on an ordinance amending the Fiscal Year 2016-2017 Budget for the Sanitation Department.
Body
Summary: The Fiscal Year 2016-2017 Budget for the Sanitation Department included funding for the lease purchase costs related to a new garbage truck and a new grappler truck. With the addition of these two new trucks, there are a total of five Sanitation trucks being financed. It is necessary to amend the Fiscal Year 2016-2017 Budget to appropriate an additional $53,871.00 related to the financing costs of the lease purchase for the new garbage truck and the new grappler truck for the Sanitation Department. Funding from the unassigned fund balance of the General Fund is available for this purpose.
Additionally, the accounting for the first year of lease purchase financing must also reflect an expenditure for the total purchase price of the asset, such expenditure to be offset by a revenue entry to record proceeds from the capital lease. While these offsetting entries do not affect the fund balance, the total equipment cost, not being budgeted, creates a variance on the expenditure side. During Fiscal Year 2016-2017, there were not enough savings in other line items to cover the total amount of the purchase price of the new garbage truck and the new grappler truck. A budget amendment in the amount of $236,484.00 is necessary to cover the increase in expenditures related to the lease purchase financing of the new garbage truck and the new grappler truck during Fiscal Year 2016-2017, to be funded from the proceeds from the capital lease recorded as revenue in the General Fund.
Fiscal/Budgetary Impact:
Include $53,871.00 in the General Fund, Sanitation Department (Account No. 10-402-4908, Lease Purchase) and $236,484.00 in the General Fund, Sanitation Department (Account No. 10-402-4907, Trucks & Heavy Rolling Stock) for a total of $290,355.00 to be funded from the unassigned fund balance of the General Fund and the proceeds from...
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