Item 3: Resolution 4922 Adopting a Supplemental Budget

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revenues were not received during FY07. The correcting adjustment is shown as footnote a) on the Transaction Summary (Attachment A). After this adjustment, the difference between FY08 Actual and Budgeted Beginning Working Capital is $1,862,114. This amount can be divided as follows: General Fund Main Subfund $1,625,592 AIRS Replacement Subfund 3,698 Cultural Services Subfund 232,824 Total $1,862,114 The $1.63 million in the Main Subfund is distributed as follows: $644,680 transfer to the General Capital Projects Fund $980,912 department reappropriations to complete FY07 authorized projects $1,625,592 Uses of General Fund Contingency There are five requests on this supplemental budget for General Fund Contingency resources totaling $258,500 that have been approved by the council. These are: ? $50,000 for the City Manager Recruitment process; ? $50,000 for diversity strategic plan development and implementation; ? $40,000 for the West Eugene Collaborative Project; ? $7,500 for parking garage reimbursement for free parking during the Eugene Celebration; ? $1,000 for support of the Human Rights Symposium. Assuming that all the requests are approved, the balance in General Fund Contingency after this supplemental budget will be $191,500. Other council-approved requests for the November 2007 election and Voter’s Pamphlet costs will be processed on the next supplemental budget. Those costs are estimated to be approximately $110,000, so the estimated balance in the Contingency Account is approximately $81,500. 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 FY07. In the General Fund, the amount set aside for prior year encumbrances was $4,197,624. After the removal of the Interoperability Grant adjustment, the Main Subfund’s reconciliation of the encumbrances distributes $1,032,705 to departments to pay outstanding FY07 orders and moves $40,282 to the Reserve for Revenue Shortfall and $255,320 to the General Capital Projects Fund. This latter amount along with the $644,680 from the marginal beginning working capital brings the total transfer to General Fund Capital projects to $900,000, per council policy. The Cultural Services Subfund distributed $82,447 to the Library, Recreation and Cultural Services Department to pay FY07 purchase order obligations. Reappropriations Reappropriation transactions recognize appropriations for programs initiated or projects authorized in FY07 by the Council or Manager, but not completed in last fiscal year and for which a purchase order F:\CMO\2007 Council Agendas\M071210\S0712103.doc