Item 3: Resolutions on FY13 Budget

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Public Works Department:  No recommended changes to FY13 proposed budget. Non-Departmental:  Increase the General Fund Unappropriated Ending Fund Balance (UEFB) by $70,000 and decrease the Reserve for Revenue Shortfall by the same amount to comply with the City policy to maintain two months of expenditures in UEFB. This change was not explicitly approved by the Budget Committee; however, it only affects the UEFB and the Reserve for Revenue Shortfall, neither of which is appropriated for spending. The Budget Committee approved including appropriations for prior fiscal year encumbrances and estimated unexpended capital project funds in the FY13 budget. Encumbrance carryover is for operating budget items encumbered but not expended in FY12. Capital project carryover is for capital appropriations that are estimated to remain unexpended at the end of FY12. Attachment A provides the information on encumbrance and capital project carryover by fund. The Budget Committee also made a recommendation to the City Council to increase funding for parks and open space operations and maintenance via the supplemental budget process. This motion does not affect the FY13 approved budget; full text of this recommendation is included in Attachment B. Timing Under the state statute, a budget must be approved prior to July 1, 2012, and a jurisdiction must elect to receive State Revenue Sharing funds and file a copy of the resolution or ordinance with the State of Oregon by July 31, 2012. Other Background Information The FY13 Proposed Budget document, Budget Committee packets, information distributed at Budget Committee meetings, and Budget Committee motions are available on the City’s website at: www.eugene-or.gov/budget. RELATED CITY POLICIES Council Goals The budget supports department work plans designed to further Council Goals and Priorities. Financial Management Goals and Policies The budget was prepared following guidelines established in the Financial Management Goals and Policies. COUNCIL OPTIONS According to ORS 294.456, the City Council is limited to increasing expenditures in a fund by no more than $5,000 or 10 percent, whichever is greater, of the Budget Committee’s approved total in each or any fund. If a larger expenditure increase is desired, republishing the budget summary in the local newspaper and conducting a second public hearing is required. The City Council may reduce revenues, move allocations within a fund and may decrease expenditures; however, all actions must result in a balanced budget, where revenues equal expenditures, for each fund. Any increase to property taxes S:\CMO\2012 Council Agendas\M120521\S1205213.doc