Report Prepared by: Faye S. Law, Senior Accountant
Title
SUBJECT: Approval of a Supplemental Appropriation in Fund 361-Airport Debt Service in the Amount of $6,023 and Transfer to Fund 561- Airport Operations
REPORT IN BRIEF
Considers approving a supplemental appropriation in Fund 361-Airport Debt Service in the amount of $6,023 and transferring to Fund 561-Airport Operations.
RECOMMENDATION
City Council - Adopt motion approving a supplemental appropriation in the amount of $6,023 from the unappropriated, unreserved fund balance in Fund 361-Airport Debt Service, and transferring to Fund 561-Airport Operations; and, authorizing the Finance Officer to make the necessary budget adjustment.
Body
ALTERNATIVES
1. Approve, as recommended, or
2. Approve, subject to other than recommended (identify specific findings and/or conditions amended to be addressed in the motion; or
3. Denny; or
4. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 1105
CITY COUNCIL PRIORITIES
As provided for in the 2019-20 Adopted Budget
DISCUSSION
Fund 361-Airport Debt Service was created in Fiscal Year 2008-09 to account for the repayment of a 10 year pooled cash loan used to purchase twenty-one box hangars. The loan repayments were made from the hangars rental revenues. The last debt service payment was made in Fiscal Year 2018-19. There were revenues left in the fund from interest and reserves required to be kept on hand. In order to close the fund the remaining cash needs to be transferred to Fund 561-Airport Operations. All future hangar rental revenues will now be received into the operation fund to offset operation costs.
IMPACT ON CITY RESOURCES
The $6,023 transfer to Fund 561-Airport Operations will offset operating costs.