CITY COMMISSION AGENDA ITEM

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Department:

City Manager’s Office

Commission Meeting Date:  1/16/18

Staff Contact:

Casey Toomay, Assistant City Manager

Recommendations/Options/Action Requested:

 

Consider approving staff recommendation to use revenues collected in 2017 as a result of the miscellaneous accounts receivable review to

·         offset the cost of the miscellaneous accounts receivable review;

·         put funds toward the purchase of new accounting software that would include an accounts receivable module; and

·         amend the CIP modifying the funding source for the $600,000 of affordable housing projects to cash from either the revenue collected through the Miscellaneous Accounts Receivable review or by moving Parks and Recreation projects totaling $600,000 from cash to General Obligation debt.   

 

Executive Summary:

As previously discussed, a review of the City’s Miscellaneous Accounts Receivables identified revenues that were never billed.  As a result, $629,941 was recorded in the General Operating Fund in 2017 that was not budgeted.  There are many options for what to do with the revenue and staff seeks Commission direction. 

 

Staff recommends using the funds to offset the cost of the review, to fund housing projects previously identified to be debt financed to lower the property tax rate in future years, and toward the purchase of an accounts receivable module as part of a comprehensive accounting software package. 

 

Affordable housing projects were previously identified to be debt financed, however, are not eligible for tax-exempt debt financing.  Therefore, staff’s recommendation includes using the revenue to cash finance these projects.

 

Strategic Plan Critical Success Factor

Core Services

Sound Fiscal Stewardship

Fiscal Impact (Amount/Source):

The review identified $690,045 of revenue that had not been billed or collected.  As of December 31, 2017, all but $937 has now been collected.  Of that, $629,941 was deposited in the General Operating Fund. 

 

By issuing less debt, the City could avoid interest expenses of approximately $65,000 over the next five and the property tax mill rate in the Bond and Interest Fund could be reduced by 0.13 mills for five years.  

Attachments:

Staff Memo

 

 

Reviewed By:

(for CMO use only)

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