Department of Finance
Reference: First Amendment to the 2022 Budget
To: Mayor Gregory Mills and Members of City Council
Through: Michael Martinez, City Manager
Prepared By: Kayla Barber-Perrotta, Budget and Performance Manager
Date Prepared: January 27, 2022
PURPOSE:
Due to the direction of Council at the January 25, 2022 study session to move forward with the $150M Water Treatment Plant option this Budget Amendment is no longer necessary, and staff is requesting Council remove this item from the agenda.
STRATEGIC FOCUS AREA:
Financially Responsible
Strategic, Supportable Infrastructure
BACKGROUND:
The First Amendment to the 2022 Budget was originally needed to account for the higher than expected bids for the completion of the South Adams Interconnect project. At the time of submittal, no alternative unencumbered appropriations could be identified to offset this increase. However, due to the direction of Council at the January 25, 2022 Study Session to move forward with the $150M Water Treatment Plant option this Budget Amendment is no longer necessary, and staff is requesting Council remove this item from the agenda. Due to the public hearing being noticed, Council must make this request rather than the City Manager removing the item administratively prior to the posting of the agenda.
The new proposal for the water treatment plant carries with it a different payment schedule than was included in the FY2022 Adopted Budget. This new schedule means that the City is no longer expected to spend the full 2022 appropriation for the water treatment project in the current year. Instead, most of this payment will occur in 2023 and 2024. Staff is recommending that the resulting unencumbered appropriation be used to address the overage of the South Adams Interconnect Project rather than increasing the overall appropriation of the Water Fund.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM:
All changes to Fund-level appropriations of the adopted budget must...
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