TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA - CM, City Manager
FROM: Cheryl J. Spivey, CPA - Chief Financial Officer
Michelle Donegain, CPA - Accounting Manager & Interim Financial Reporting Manager
Ashley Gilmore - Financial Analyst
DATE: June 26, 2017
RE:
Title
Airport Capital Project Fund Ordinance Closeout Amendments
end
COUNCIL DISTRICT(S):
Council District(s)
All Districts
b
Relationship To Strategic Plan:
Goal V, Objective A - To ensure strong financial management with fiduciary accountability and plan for the future resource sustainability by aligning resources with City priorities.
Executive Summary:
Staff proposes to amend nine capital project fund ordinance closeouts from FY2005 -FY2016 to correct the actual revenue sources that were used to fund airport capital projects completed in previous years.
Background:
Passenger Facility Charges (PFCs) are collected by the Fayetteville Regional Airport to provide a supplemental revenue source of funding for airport projects. FAA approval is required to use PFC funds to finance eligible projects and to reimburse the airport fund for the local share of FAA Airport Improvement Projects. Eligibility criteria include projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition.
In FY2017, Finance staff determined that PFC project funding in previous years was not always amended in the accounting records to reimburse the airport fund for local revenue sources temporarily used to fund projects prior to those projects being deemed eligible for PFC funds. This practice resulted in a difference between actual PFC funds available for use and the amount shown in the accounting records.
The proposed amendments will correct project funding sources in the accounting records by reducing either airport operating fund contributions, or investment income contributions. The revenues offset each other, thus there is no effect on...
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