Item 3: Resolution 4922 Adopting a Supplemental Budget

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had not been issued by June 30, 2007. The resource for most of these transactions is the Beginning Working Capital adjustment. Reappropriations by department are listed on Attachment A. 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 already incurred. In the General Fund, grant revenues totaling $3,910,911 are appropriated to departments. The Police Department is the largest recipient of funds, due primarily to the Interoperability Grant. The State of Oregon is also providing $500,000 in support for the 2008 Olympic Trials; $300,000 to Police for support of security efforts and $5,000 to Public Works for recycling. The remaining $195,000 in state funding for the Olympic Trials is described below. Significant New Capital Budget Adjustments ? Recognize a $900,000 transfer from the excess in the General Fund’s Beginning Working Capital and Reserve for Encumbrance reconciliations and increase the budget for General Fund capital projects by $900,000 to complete the capital improvement plan for public buildings and facilities approved by the Budget Committee in FY08. ? Reappropriate $32,182 and appropriate an additional $275,000 from Balance Available for the completion of the Radio Receiver Site project. ? Recognize capital funding of $195,000 received from the State for projects related to the 2008 Olympic Trials. Projects include way-finding and interpretive signage, park improvements, Willamette River cleanup, and enhancements to infrastructure. Capital Project Carryover Reconciliation The Capital Project Carryover Reconciliation occurs in this supplemental budget. An estimate of the capital carryover in each pertinent fund was established in the FY08 Annual Budget. These estimates have been reconciled with actual FY07expenditures and the Capital Budget is adjusted to reflect the remaining unspent balances in each project. These transactions are noted as Capital Project Carryover Adjustments in Attachment A. Timing In some cases, expenditure authority is needed immediately to carry out Council direction or to meet legal or program requirements. Approval of Supplemental Budget #1 in December allows the organization to prepare more accurate mid-year projections by having the general ledger reflect the audited balances in each fund. This, in turn, enables staff to more accurately project the Beginning Working Capital for the next year’s Proposed Budget. RELATED CITY POLICIES These transactions conform to the City’s Financial Management Goals and Policies. F:\CMO\2007 Council Agendas\M071210\S0712103.doc