Agenda Item Wording:
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Capital Improvement Program - Review FY 2024/25 and 2025/26 Capital Improvement Program (CIP) Budget for Narcotics Forfeiture Fund (621)
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Deadline for Action: 5/6/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
Melody Murch, (559) 713-4379, melody.murch@visalia.city <mailto:melody.murch@visalia.city>
Renee Nagel, (559) 713-4375, renee.nagel@visalia.city <mailto:renee.nagel@visalia.city>
Department Recommendation:
That the City Council receive this presentation of the City’s draft Capital Improvement Program (CIP) budget for the Narcotics Forfeiture Fund (621) and provide direction as appropriate. The Council is scheduled to act upon the CIP budget during the month of June 2024 in conjunction with the operating budget. No formal action is required or requested at this time.
Background Discussion:
The Review Process- Council has reviewed all Capital Budget Requests in prior Work Sessions, however, the Narcotics Forfeiture Fund (621) was excluded from the visual presentation made on April 15, 2024 in error. For this reason, the budget detail for the Narcotics Forfeiture Fund is being brought for Council review and direction prior to final adoption of the 2-year budget planned for June 2024.
The Capital Improvement Program presents the two fiscal years 2024/25 and 2025/26 for adoption and appropriation. Four additional years are shown for planning purposes only. This allows Council to plan future projects and consider the near-term impacts of those decisions. However, only the first two years are proposed for appropriation and deserve greater scrutiny. Amounts included in the final four years will not be appropriated in the 2-year budget.
Staff has prepared a Power Point presentation to review the proposed Capital Program for the Narcotics Forfeiture Fund. CIP Project Managers will be available to address Council’s questions on proposed projects. To assist Council in reviewing the proposed CIP projects, staff recommends the following:
• Staff will present a summary of proposed project appropriations and provide Council with the opportunity to request further information on individual projects.
• It is recommended that Council review and either tentatively approve or direct changes to the attached proposed Capital Improvement Program (CIP) budgets for the selected funds.
• No formal action is required at this time. At Council’s direction, staff will return with additional information or changes to the CIP at a following meeting, until all projects have been reviewed, and Council is satisfied with the proposed capital budget for all funds.
• A final Capital Improvement Program document will be prepared, after the review process is completed, and included for adoption with the City’s Operating Budget in June 2024.
The CIP includes all projects and equipment purchases costing $10,000 or more. When possible, capital projects are separated from the operating budget, using separate capital funds. This allows a clear view of capital activities and prevents operating budgets from being artificially inflated by those same capital activities.
Fund for Review- The Narcotics Forfeiture Fund (621) is a Special Revenue Fund.
• Special Revenue Funds collect money which must be used for a specific purpose. These funds provide accountability and transparency to tax and rate payers, requiring funding to be spent for an intended purpose.
The Fund to be discussed in today’s meeting is shown in Table 1: Capital Budget Funds for Review May 6, 2024, below.
Table 1: Capital Budget Funds for Review May 6, 2024
Narcotics Forfeiture, Fund 621 (CIP detail attached): This fund was established to account for money received from narcotics seizures of cash and Property as authorized by the California Health and Safety Code. Monies are held on deposit until a court determines whether the money must be returned to the previous owner or forfeited to the City, which may use the seized funds for the recovery of law enforcement costs associated with the seized funds. This fund has 4 projects in the 6-year capital plan, with 3 of those projects requesting appropriations in the 2-year budget. The projects are for Police K-9 officers and the purchase of police equipment. For a detailed description of the projects proposed in this fund, please see the Capital Summary in Attachment A.
Fiscal Impact:
The City’s Capital Improvement Plan details a six-year plan for the expenditure of funds and the completion of projects (see Attachment A). Information for the years 2026/27 through 2029/30 is provided for information and planning purposes and will be revised, updated, and adopted in 2-year increments.
The attached spreadsheet summarizes the fund and provides a detailed list of the proposed projects. The fund title and number are followed by a brief explanation of the revenue source and general purpose of the fund. The fund summary shows projections of the beginning cash, operating revenue (or capital contribution from operating revenue), operating expenditures, proposed CIP expenditures, and the projected ending cash balance for each of the six years.
Prior Council Action: The funds shown in Table 2: Capital Funds Reviewed at Prior Council Session, below have been reviewed by Council during prior Work Sessions as indicated. The detail for all reviewed funds will be included in the final DRAFT City of Visalia proposed budget which will be brought to Council for review and adoption in June 2024.
Other: As indicated below, the Measure N Fund (141) will be reviewed in a separate process which begins tonight but will be included in the final DRAFT document for informational purposes.
Alternatives: None recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
No motion requested or required at this time.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
Attachment A: Summary of proposed Capital Projects by Fund