Item 6: PH on Resolution Adopting Supplemental Budget 1

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totaling $4,247,521 are appropriated to departments. The Police Department is receiving the majority of those funds. Significant Budget Changes ? The General Fund is appropriating $700,000 to refund the franchise fees paid by IGI according to the court ruling rendered in November 2005. ? The Airport Fund is sending the unspent balance in its Airport Development Fund ($72,895) to the General Fund according to the FY06 budget direction received from the Budget Committee and City Council. ? The Partnerships for Youth Fund is closed and the remaining resources are moved into the Youth and School Services Levy Fund. ? The self-insured City Health Plan had excellent experience in FY05, for the first year in many years. The average medical claims cost was actually 6% less in FY05 than in FY04. As a result of this good experience, the Risk and Benefits Fund is able to increase Balance Available by $550,000 and fully fund a $1.15 million Rate Stabilization Reserve (RSR) recommended by Aon Consulting, the City’s benefits actuary. The RSR is used to provide a margin for “adverse deviations” between projected and actual claims costs. This action should also reduce the need for future supplemental budget transfers into the fund. ? The Fleet Fund is increasing its operating budget by $350,000 to cover higher than anticipated fuel prices. ? The Stormwater Fund is using $125,000 received from Lane County for support of the River Road/Santa Clara Basin Plan. Significant Capital Budget Adjustments ? Recognize a $900,000 transfer from the General Fund 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 FY06. ? The budget for street trees is raised by $256,755 using $19,614 in new revenues and $237,141 in Balance Available in the General and Road Capital Projects Fund. ? The Systems Development Capital Projects Fund is budgeting $350,000 for the local match on the Delta Pond Path project. ? The Stormwater Fund is appropriating $121,000 received from intergovernmental partners for vegetation management in the West Eugene Wetland Program. 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 FY06 Annual Budget and approved by the council. These estimates have been reconciled with actual FY05 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. Timing In some cases, expenditure authority is needed immediately to carry out City Council direction or to L:\CMO\2005 Council Agendas\M051212\S0512126.doc