Agenda Packet 12-10-18 Meeting - Laserfiche WebLink

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December 10, 2018, Meeting – Item 5 EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Public Hearing and Action: A Resolution Adopting a Supplemental Budget; Making Appropriations for the City of Eugene for the Fiscal Year Beginning July 1, 2018 and Ending June 30, 2019 Meeting Date: December 10, 2018 Agenda Item Number: 5 Department: Central Services Staff Contact: Jamie Garner www.eugene-or.gov Contact Telephone Number: 541-682-5502 ISSUE STATEMENT Council approval of the first Supplemental Budget for Fiscal Year 2019 is requested. Oregon Local Budget Law (ORS 294.471) allows for supplemental budgets in the event of “An occurrence or condition that is not ascertained when preparing the original budget or a previous supplemental budget for the current year or current budget period and that requires a change in financial planning.” ORS 294.471 also allows for a supplemental budget if there are “funds that are made available by another unit of federal, state or local government and the availability of which could not reasonably be foreseen when preparing the original budget or a previous supplemental budget for the current year or current budget period.” This Supplemental Budget does not authorize any increase in the property tax levy and has been published in compliance with the Oregon Local Budget Law. BACKGROUND The Supplemental Budget that occurs in December of a fiscal year is usually the largest because of the audit adjustments to budgeted Beginning Working Capital and the reappropriation of funds from the prior fiscal year for contracts, program initiatives or projects that were started but not completed in that fiscal year. This Supplemental Budget also recognizes new revenue and authorizes other unanticipated changes in legal appropriations. Transactions Related to Beginning Working Capital Isler & Company, LLC, the City's external auditor, has completed its Fiscal Year 2018 (FY18) audit of Beginning Working Capital, and this Supplemental Budget includes Marginal Beginning Working Capital (MBWC) adjustments for all City funds. The MBWC is the difference between the estimate of FY18 ending working capital that was made in the FY19 Adopted Budget and the audited actual FY18 ending working capital. This adjustment is recognized on SB1 and is the largest component of the transactions included in this budget request. City Council Contingency This Supplemental Budget does not include any recommendations to use City Council Contingency funds. City Council Contingency is currently budgeted at $12,000.