Elk Grove City Council to Receive Mid-Year Budget Review

February 10, 2015 |

With over half of fiscal year 2015 behind it, the Elk Grove City Council will be given an update on the city's budget performance at tomorrow night's meeting.

The highlights noted in the staff report include slightly better than expected revenues, which are $885,435 ,or 1.62-percent ahead of projections. On the expense side, expenditures are above budget by $1,366,614 or 2.40-percent.

The Elk Grove City Council will consider adding $3 million

to the budget of the city's proposed aquatics center. 

Among many of the new capital projects being updated include the city's proposed aquatics center. In its current version, the ballyhooed civic center project includes an Olympic-sized competitive pool and 10-meter diving platform and has been budgeted at $14 million.

The staff report says the estimated cost of the aquatics center under the current proposal is estimated to cost $16.25 million. The cost could be lowered, according to the report, by removing some of the components associated with project.

"It is important to note that while it is possible the originally envisioned project can be awarded without an increase in the project’s $14 million budget, it is likely a reduction of scope will be necessary," the report says.

To make up the difference and go forward with the entire project as is, the staff is recommending budgeting an additional $3 million for the project. 

The report states "With the risk that an aquatics complex with the current scope exceeds the $14 million project cost, bringing estimated total project delivery cost up approaching $17 million, a CIP [capital improvement program] adjustment is necessary. Exhibit C to the Resolution includes a proposed $3 Million of additional bond funds coming from Community Facilities District 2003-1 Poppy Ridge (Poppy Ridge) in Fiscal Year 2015-16 to cover the difference between current full project scope estimates and current authorized spending levels. The aquatics center is an authorized facility within Poppy Ridge. Based on recent market analysis conducted by the City’s financial advisor, bonding capacity exists within the district to issue sufficient debt without increasing tax rates."

Tomorrow night's meeting starts at 6 p.m.