Supporting Document (2665dec7...)

Docusign Envelope ID: 0C8B1E31-284G-80A1-8384-A2526BDEA525
Item 15
CITY COUNCIL
♦
lEPORT
Meeting Date: November 10, 2026
Charter Provision: Provide for the orderly government and administration of the
affairs of the City
Objective: Adopt Budgets
AGTION
FY 2025/26 Operating Budget Adjustments. Adopt Resolution No, 13834 authorizing FY 2025/26
operatirig budget adjustments.
BACKGROUND
The FY 2025/26 budget was adopted June 10, 2025, by Ordinance No. 4670. Section 2 of Ordinance
No. 4670 allows expenditures to be made from budget contingencies and reserves upon
recommendation of the City Manager and approval of the City Council.
Additionally, Article 6, Section 11 of the Scottsdale City Charter permits the transfer of any
unencumbered appropriation balance or portion thereof between general classifications of
expenditures within an office, department, or agency or from one office, department, or agency to
another at the request of the City Manager and with the approval of the City Council.
The City's year-end process extends from June 30 through October or November, during which
additional year-end accounting activities are recorded that may result in expenditures exceeding
Council-approved budget appropriations.
Per adopted financial policy 1.09, the City's annual budget, includes contingency appropriations to
provide for unanticipated increases in expenditures and unexpected needs that may arise throughout
the fiscal year. Use of contingency appropriation requires identifying a funding source and should be
utilized only after all budget sources have been examined for available funds. The contingency
appropriation can only be expended upon separate Council approval.
ANALYSIS & ASSESSMENT
The proposed budget adjustments are included in Exhibit A to Resolution No. 13834 and are explained
below:
1. Debt Service Fund - Transfer of Budget Appropriation from Reserves.
AcUon Taken.

bocusign Envelope ID; 0C8B1E31-284C-80A1-8384-A2526BDEA525
City Council Report | FY 2025/26 OPERATING BUDGET ADJUSTMENTS
From: Debt Service Reserves ($6,624,000)
To: Debt Service Expenditures $6,624,000
To transfer budget appropriation for debt service on ne\A/general obligation bonds (G.O. bonds)
issued in May 2025 after the FY25/26 budget was finalized for preparation and submission.
I
The FY 2025/26 budget included an estimate for debt service on new G.O. bonds that were not
issued until after the FY 2025/26 budget was finalized for adoption. While the City has sufficient
cash in its Debt Service Fund reserves to cover the hew debt service, the budget appropriation for
debt service was not updated due to the timing of the issuance to reflect the use of the reserve
funds. This budget adjustment transfers budget appropriation from Debt Service Reserves to Debt
Service Expenditures to properly reflect the G.O. bond debt service expenditures for FY 2025/26.
2. Streetlight Improvement District Fund - Transfer of Budget Appropriation from Contingency
From: General Fund Contingencies ($10,000)
To: Streetlight Expenditures $10,000
To increase budget appropriation for higher-than-expected streetlight expenditures. This transfer
moves budget appropriation only and does not use General Fund money.
The City assesses properties in streetlight improvement districts for streetlight expenditures.
Streetlight expenditures for FY 2025/26 were higher than expected and were assessed to property
owners in the streetlight districts accordingly.
Because the Streetlight Ihriprovement District Fund does not have a contingency appropriation, a
budget adjustment is needed to transfer appropriation from General Fund Contingency to provide
budget authority for the additional streetlight expenditures.
RESOURCE IMPACTS
The FY 2025/26 operating budget appropriations for contingencies and reserves for all funds total
$370.8 million. The contingency appropriation can only be expended upon separate CounGil approval.
The appropriation required to cover the budget adjustments exists in the City's adopted FY 2025/26
operating budget.
OPTIONS & STAFF RECOMMENDATION
Page 2 of 3

Docusign Envelope ID: 0C8B1E31-284C-80A1-8384-A2526BDEA525
City Council Report | FY 2025/26 OPERATING BUDGET ADJUSTMENTS
Staff recommends the adoption of Resolution No. 13834 authorizing FY 2025/26 operating budget
adjustments.
RESPONSIBLE DEPARTMENT(S)
City Treasurer
STAFF CONTACT(S)
Scott Selin, Budget Director, (480) 312-2306, SSeling)ScottsdaleAZ.gov
APPROVED BY
-Signed by:
10/28/2026
-----84«>MDOa6AtMCQ
Greg Caton, City Manager Date
(480) 312-7759, GCaton(5)ScottsdaleAZ.gov
-Signed by:
(lot fdr ScMl 10/28/2026
-90g77300ADDiM19
Scott Selin, Budget Director Date
(480) 312-2306, SSelinOScottsdaleAZ.gov
-Slgn«l by:
10/28/2026
-OOCMISOCAeOAAOA
Sonia Andrews, City Treasurer/Chief Financial Officer Date
(480) 312-2364, SAndrews@ScottsdaleAZ.gov
ATTACHMENTS
1. Resolution No. 13834
2. Exhibit A to Resolution No. 13834
Page 3 of 3

RESOLUTION NO. 13834
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE,
MARICOPA COUNTY. ARIZONA, AUTHORIZING OPERATING ADJUSTMENTS
FOR THE PURPOSE OF COMPLYING WITH ORDINANCE NO. 4670 AND
ACCURATELY EXPENSING THE FISCAL YEAR 2025/26 BUDGET.
WHEREAS, current estimates of revenues and expenditures differ from forecasts used to
create the FY 2025/26 budget;
Whereas, differences between forecasts and actual expenditures were communicated
to the City Council monthly;
WHEREAS, Article 6, Section 11 of the Scottsdale City Charter permits the transfer of any
unencumbered appropriation balance or portion thereof between general classifications of
expenditures within an office, department, or agency or from one office, department, or agency to
another at the request of the City Manager and with the approval of the City Cbuncii;
WHEREAS, Section 2 of Ordinance No. 4670 allows expenditures to be made from budget
contingencies and reserves upon recorrirnendatipn of the City Manager and approval of the City
Council;
WHEREAS, State law permits the transfer of monies between budget items if the money
is available, the transfer is in the public interest and based on a demonstrated need, the transfer
does riot result in a violation of the expenditure limitation, and a majority of the City Council
approves the transfer at a public meeting;
WHEREAS, the City is required to balance its budget and all associated funds;
WHEREAS, the money for the requested adjustments and transfers is available, the
adjustments and transfers are in the public interest and based on a demonstrated need, and the
adjustments and transfers do not result in a violation of the expenditure limitation;
WHEREAS, the City Manager recommends the budget adjustments described and
estimated in Exhibit “A”; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Scottsdale, Maricopa
County, Arizona as follows:
Section 1. The City Council hereby authorizes and directs the City Treasurer to make the
budget adjustments described and estimated in Exhibit “A” hereto, which is incorporated herein
by this reference.
PASSED AND ADOPTED by the Council of the City of Scottsdale, Maricopa County,
Arizona, this 10th day of November 2026.
19625622 Resolution No. 13834
Page 1 of 2
ATTACHMENT 1

CITY OF SCOTTSDALE, an Arizona
municipal corporation
ATTEST:
Lisa Borowsky, Mayor
Ben Lane, City Clerk
APPROVED AS TO FORM:
Ll/|6 E. Santaella, Cilly Attorney
: Jennifer Fernandez, Senior Assistant City Attorney
19625622 Resolution No. 13834
Page 2 of 2

Exhibit “A” to
Resolution No. 13834
Listed below are the proposed operating budget adjustments for FY 2025/26 requiring
Councilapproval per City Charter and adopted Comprehensive Financial Policies.
The following operating budget transfer requests are necessary due to unanticipated
operational.needs that arose during the normal course of operations in FY 2025/26. These
requests reflect adjustments to existing authorized budget appropriations between
categories.
1. Debt Service Fund
FROM: Debt Service Reserves - ($6,624,000)
TO: DebtService Expenditure-$6,624,000
i
To adjust budget appropriations for debt service on new general obligation bonds (G.O.
Bonds) issued after the FY 2025/26 budget was finalized. The city has sufficient debt
service reserves for the increased debt service in FY 2025/26.
D
2. Streetlight Improvement District Fund
FROM; General Fund Contingencies-($10,000)
TO: Streetlight Improvement District Expenditures - $lO,000
To increase budget appropriations for higher than expected streetlight expenditures that
are assessed to properties in the streetlight improvement districts. This transfer is to move
budget appropriation only and does not utilize General Fund monies. The additional
streetlight expenditures are assessed to properties in the districts.
Resolution 13834 Exhibit A Page 1 of 1
attachment 2
•L