Item 4: Resolution Adopting a Supplemental Budget 1

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The audited adjustment to the City of Eugene’s FY09 Budgeted Beginning Working Capital is a $16.04 million reduction, meaning that the aggregate beginning resources were overestimated. Most of the reductions occur in those funds with revenues dependent on bond sales, grants and payments from other jurisdictions that have not yet occurred. In the General Fund, the Marginal Beginning Working Capital Adjustment is an increase of $2.25 million; $1.58 million in the Main subfund and $.67 million in the Cultural Services subfund. 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 FY08. In the General Fund’s Main Subfund, the amount set aside for prior year encumbrances was $2.00 million. The Main Subfund’s reconciliation of the encumbrances distributes $1.48 million to departments to pay outstanding FY08 orders, leaving $527,485 in excess carryover, either because goods were received and paid for by the end of FY08, or orders were cancelled. The excess is used to pay for $102,170 of reappropriations (see below), $59,000 is allocated to Fire & Emergency Medical Services to correct their appropriation for Fleet Rates paid on maintenance of fire trucks, and the balance of $366,315 is transferred to the General Capital Projects Fund for building preservation and maintenance according to adopted policy. The Cultural Services Subfund distributes $.07 million to the Library, Recreation and Cultural Services Department to pay FY08 purchase order obligations and moves the remaining small balance to the Cultural Services Reserve ($8,694). This reconciliation is shown in Attachment A. Reappropriations Reappropriation transactions recognize appropriations for programs initiated or projects authorized in FY08 by the council, but not completed in the last fiscal year and for which a purchase order had not been issued by June 30, 2008. The General Fund reappropriations are: the unspent balances for one-time funding for the Sustainability Program, River Road and Santa Clara neighborhood funds, the FY08 Neighborhood Empowerment Initiative, the Neighborhood Matching Grant program, the Opportunity Siting and Standards project, annexation processing, the Olympic Trials, the Eugene Comprehensive Lands Assessment, equipment replacement, and the net difference between revenues and expenditures in the Rental Housing program. The resource for most of these transactions is the Beginning Working Capital adjustment. Total reappropriations by department in the General Fund are shown on Attachment A. 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 FY08 expenditures 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. Other types of adjustments on this supplemental budget are: Recognition of New Revenues and Rebudgeting of Grants 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. Grants that are received over a period of more than one fiscal year have their appropriation balances and revenues rebudgeted in the current fiscal Z:\CMO\2008 Council Agendas\M081208\S0812084.doc