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AUTHORIZATION TO RECLASSIFY INTER-FUND ADVANCE TO INTERFUND TRANSFER
Staff Contact: Tom Duensing, Director, Finance and Technology
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Purpose and Recommended Action
Recommendation
This is a request for the City Council to waive reading beyond the title and adopt a resolution authorizing that an amount recorded in the City's General Ledger as an Advance From Other Funds to the General Fund and an Advance to Other Funds from certain business type (Enterprise) funds be reclassified to an interfund transfer.
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Background
On May 11, 2010, the City Council adopted a resolution granting authority to the City Manager to sign agreements and secure the financial mechanisms necessary to make a payment of $25 million to the NHL to satisfy the National Hockey League's requirements for them to operate the city owned arena so that the Phoenix Coyotes could continue to play in Glendale for the 2010-2011 NHL season. The financial mechanism used was recorded in the City's general ledger as an inter-fund advance of $21 million from the Landfill Enterprise Fund and a $4 million inter-fund advance from the Sanitation Enterprise fund.
On May 11, 2011 the City Council adopted a second resolution granting similar authority for the City Manager to make an additional agreement with the NHL, secure the financial mechanisms necessary, and pay up to an additional $25 million for operation of the arena for the 2011-2012 NHL season. The financial mechanism used was an inter-fund advance from the Water and Sewer Enterprise Fund for $15 million and additional inter-fund advances totaling $5 million from other general fund sub-funds. As part of the agreement with the NHL, an additional $5 million is scheduled to be paid to the NHL in Fiscal Year 2016-17.
A repayment plan for the inter-fund advances was developed as part of the budget process and payments from the general fund to the enterprise funds have occurred each year starting in 2012. Including the...
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