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Councilor Bettman asked if this represented an indirect transfer if one was decreasing and the other funds were increasing. Ms. Murdoch replied that this was not so; the supplemental budget had to do with resources and how spending came out and what the audit said happened in the previous year. She reiterated that the process sought to adjust estimates in the case of the working capital reconciliation and there were also reserves for capital and encumbrances for purchase order reconciliations. She underscored that the supplemental budget dealt with a variety of accounting adjustments. Councilor Bettman commented that there was a point at which there would be a supplemental budget because the budgeting process “guessed” at what the beginning working capital would be and when the money came in over that amount then it “gets plugged into different departments.” She declared that the council did not have a discussion about that money; “it just shows up like this and is a big number.” She asked why excess money was not being put into the reserve for revenue shortfall. Ms. Murdoch clarified that the $8.3 million was not General Fund money, rather it was from all different funds including the Telecom Fund, capital projects funds, wastewater funds and so on. It was not necessarily money that could be placed into the reserve for revenue shortfall. Mayor Piercy asked if any councilors objected to taking action at the present meeting. Councilor Bettman indicated that she opposed taking action at this time. Councilor Bettman averred that the reconciliation was not specific to the way the budget was looked at. She asserted that it was “just numbers” and the justification were “always just in terms of … doing this to be consistent with the budgeting process.” She wanted to see a breakdown of the $12.9 million. She understood that some of the funds that had beginning working capital that turned out to be higher than necessary were not General Fund. She asserted that the money was being “funneled” back into the departments. Ms. Murdoch said she was unsure how she could quickly satisfy that requirement in that there were thousands of transactions. She related that she and her staff had worked long hours on it. Councilor Bettman questioned whether the $12.9 million could really represent “thousands of transactions.” Ms. Murdoch reaffirmed that this was so. She asked what information would satisfy Councilor Bettman’s concerns. She explained that the Finance Division had journals with hundreds of lines of beginning working capital adjustments. She said the City had “many, many” purchase orders; the purchase order encumbrance reconciliation took all of the outstanding purchase orders and looked at what was actually spent and what the balances were. She stated that staff tried to inform the council by each fund what each of those encumbrance balances were, but if the councilor wished to know where every one of the encumbrances went back in each department it would be time consuming. Councilor Bettman averred that she was not interested in the encumbrances. She said she would be happy if staff indicated that two-thirds of the money was to pay for projects that were planned and funded in 2007, but the money was not expended in 2007. Ms. Murdoch responded that this MINUTES—Eugene City Council December 10, 2007 Page 11 Regular Meeting