Item 4 - Adoption of FY13 COE Supplemental Budget

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing and Action: Resolution Adopting a Supplemental Budget; Making Appropriations for the City of Eugene for the Fiscal Year Beginning July 1, 2012 and Ending June 30, 2013 Meeting Date: December 10, 2012 Agenda Item Number: 4 Department: Central Services Staff Contact: Mia Cariaga www.eugene-or.gov Contact Telephone Number: 541- 682-5408 ISSUE STATEMENT City Council approval of the first Supplemental Budget (SB1) for Fiscal Year 2013 (FY13) 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.” 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.” 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 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 2012 (FY12) audit, and this Supplemental Budget includes Marginal Beginning Working Capital (MBWC) adjustments for all City funds. The MBWC is the difference between the estimated and audited actual FY12 revenues and expenditures. This adjustment is recognized on SB1 and is the largest component of the transactions included in this budget request. General Fund Carryover Reconciliation The total of the MBWC adjustment and the FY13 budgeted reserve for encumbrances in the Main Subfund of the General Fund is $4,694,224. This amount is available to be appropriated or put into reserves in the General Fund on SB1. Of this amount, $1,070,034 is dedicated to prior fiscal year encumbrances. S:\CMO\2012 Council Agendas\M121210\S1212104.doc