Item 30: Fund Balance for Financing Capital Improvement Projects

[COSM_Admin]

Consider approval of Ordinance 2022-43, on the first of two readings, amending certain funds in the City’s 2021-2022 Fiscal Year budget to authorize the use of fund balance for financing capital improvement projects and TIRZ project plan; including procedural provisions; and declaring an effective date

 

[JHughson]

During the explanation for this, PLEASE explain that we aren't really using the "fund balance" - our savings account for emergencies; that this is income over expected expenses that we are spending.
Is this the first Paso Robles (Kissing Tree) TIRZ payment?
Second paragraph under Background Information has "This fourth budget amendment for fiscal year 2021-22 (FY22) reflects the transfer of funds to from excess fund." The "to from" is a bit confusing.
Glad to see this is going to cash fund some CIP items and less borrowing!

 

[JHughson]

How many more TIRZ payments will there be?

 

[COSM_Admin]

Response provided by Anna Miranda, Interim Director of Finance:
During the explanation for this, PLEASE explain that we aren't really using the "fund balance" - our savings account for emergencies; that this is income over expected expenses that we are spending. Yes ma’am. It is coming from fund balance available in excess of required thresholds for emergencies.

Is this the first Paso Robles (Kissing Tree) TIRZ payment? Yes, it is.

Second paragraph under Background Information has "This fourth budget amendment for fiscal year 2021-22 (FY22) reflects the transfer of funds to from excess fund." The "to from" is a bit confusing. Agreed, sounds like I forgot to omit an extra word. Should be “reflects the transfer of funds from excess fund balance”.

Glad to see this is going to cash fund some CIP items and less borrowing! Yay!

How many more TIRZ payments will there be? The Zone will terminate 12/31/44. The maximum reimbursement from the tax increment is $30 million under the TIRZ 4 project and financing plan. As of December 2021, total construction costs to be reimbursed amounted to $13.1 million. A payment will be made from the tax increment until the total amount is reimbursed.