Item 5: PH on Resolution Adopting Supplemental Budget #1

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For the General Fund, the difference between FY07 Actual and Budgeted Beginning Working Capital is $1,451,588. This amount can be divided as follows: General Fund Main Subfund $1,294,137 AIRS Replacement Subfund (233,592) Cultural Services Subfund 391,043 Total $1,451,588 The $1.29 million in the Main Subfund is distributed as follows: $900,000 transfer to the General Capital Projects Fund $387,448 department reappropriations to complete FY06 authorized projects $6,689 Reserve for Revenue Shortfall $1,294,137 Uses of General Fund Contingency There are three requests for General Fund Contingency resources totaling $110,424. The council previously approved two of the requests - $7,500 for parking garage reimbursement for free parking during the Eugene Celebration and $44,924 for voters’ pamphlet production costs related to the November 7, 2006, general election. The new request is from the Public Works Department for $58,000 to pay for the inclusion of the section of road known as “Middle Crest” in the scope of the Context Sensitive Solution Street Design process. The additional resources would pay for the survey and design of this additional 2,200 feet of roadway. Assuming that all the requests are approved, the balance in General Fund Contingency after this supplemental budget will be $229,576. A spreadsheet listing the contingency requests and the account balance is included as Attachment B. Prior Year Encumbrance Reconciliation This supplemental budget reconciles the estimate of unpaid purchase orders at year-end with the actual outstanding purchase orders at the end of FY06. In the General Fund’s Main Subfund, the amount set aside for prior year encumbrances was $1,039,089. The General Fund’s reconciliation of the encumbrances distributes $859,151 to departments to pay outstanding FY06 orders and moves the remaining $179,938 to the Reserve for Revenue Shortfall. Reappropriations Reappropriation transactions recognize appropriations for programs initiated or projects authorized in FY06 by the City Council or Manager, but not completed in that fiscal year and for which a purchase order had not been issued by June 30, 2006. The resource for most of these transactions is the Beginning Working Capital adjustment. Recognition of New Revenues These transactions recognize new or expected revenues, primarily from grants and other agencies, and increase the operating and capital budgets. In some cases, capital project support from other governments for ongoing projects is put into Balance Available because the project is currently budgeted and the fund is being reimbursed for a share of the costs incurred. In the General Fund, grant revenues totaling $5,139,437 are appropriated to departments. The Police Department is receiving the majority of those funds and most, such as the Community Oriented Policing Services (COPS) Interoperable Communications Technology grant, are grants awarded in a previous year for which resources have not yet been received. L:\CMO\2006 Council Agendas\M061211\S0612115.doc