Item 3: Resolution on Supplemental Budget

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shortfalls in the current and future years and the uncertainty associated with the City’s future economic condition. A full list of the General Fund reappropriations and other uses of MBWC is included in Attachment A. This Supplemental Budget reflects the following Budget Committee and City Council motions passed during the FY12 budget process:  $900,000 general capital transfer, of which $300,000 will be dedicated to the development of Creekside Park (Budget Committee motion passed in May 2010);  $100,000 transfer to the Road Fund for the enhanced pothole program;  $100,000 increase in the Public Works Department operating budget for Parks and Open Space operations and maintenance;  $450,000 increase in the Central Services Department operating budget for Buckley House and gang prevention activities. Additionally, the City Manager is recommending a transfer of $500,000 to the City Hall Replacement Fund to cover the costs associated with the City Hall project. City Council Contingency This Supplemental Budget includes a recommendation to use $25,000 out of $100,000 in the City Council Contingency account to cover the costs associated with providing portable restrooms to the homeless citizens. Capital Carryover The Capital Project Carryover Reconciliation also occurs in this Supplemental Budget. An estimate of the unspent balance in each capital project was established in the FY12 Annual Budget. These estimates have been reconciled with actual FY11 expenditures and the Capital Budget is adjusted to reflect the remaining unspent balances in each project. The Capital Carryover on this Supplemental Budget totals $6,884,554. Recognition of Grant Revenues There are transactions on this Supplemental Budget that 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 already appropriated or incurred. Grants that are received over a period of more than one fiscal year have their appropriation balances and revenues re-budgeted in the current fiscal year. In the General Fund, grant revenues totaling $1,614,000 are appropriated to departments. Details are included in Attachment A. Non-General Fund Transactions This Supplemental Budget recognizes approximately $12 million in non-general fund transactions, other than MBWC, encumbrances and capital carryover reconciliation. Most of this total is reflected in recognizing and re-budgeting $7.9 million in grants and other agency revenue. This Supplemental Budget also includes $3.6 million in non-general fund reappropriations for projects not completed in the prior fiscal year. Other non-general fund transactions are detailed in Attachment A. S:\CMO\2011 Council Agendas\M111212\S1112123.doc