Item 4 - Adoption of FY13 COE Supplemental Budget

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 $30,629 increase in the Central Services Department operating budget to cover an additional payment for the FY13 Lane Council of Governments (LCOG) dues (FY13 total of $60,629);  $15,000 increase in the Central Services Department operating budget to cover the costs associated with the Downtown Public Safety Zone court-appointed attorney. Reserve for Revenue Shortfall The City Manager is recommending that the remaining $227,620, after taking into account the above uses of MBWC, be placed in the Reserve for Revenue Shortfall. After this Supplemental Budget, there will be a total of $10,655,727 in the Reserve for Revenue Shortfall, which represents 8.8 percent of the FY13 adopted General Fund operating expenditures. This represents an increase in the Reserve for Revenue Shortfall of $921,088 from the end of the previous fiscal year. This reserve balance will assist the City organization in weathering the revenue shortfalls in the current and future years and the uncertainty associated with the City’s future fiscal condition. It should be noted, however, that the City also expects to receive about $800,000 less than budgeted in property tax revenues, which will bring the reserve down to 8.1 percent. Animal Services Budget Adjustments This Supplemental Budget includes adjustments to revenues and appropriations associated with the Animal Services Program. These adjustments complete the transition of the Animal Services Program to the City of Eugene. In prior years, animal code enforcement and field services, shelter services and licensing services were provided by Lane County under intergovernmental agreement with the City. The County ended these services in June 2012. City animal code enforcement, field services and licensing services are now provided by the Eugene Police Department, while shelter and adoption services are operated by Greenhill Humane Society under a contract with the City. The City Spay and Neuter Clinic has been and will continue to be operated by the City. The FY13 Adopted Budget was based on prior years’ funding strategy. To complete the transition of animal services, this Supplemental Budget moves current appropriations for contractual services, including shelter and adoption services, from the Central Services Department to the Police Department. This Supplemental Budget also recognizes additional revenues and increases appropriation authority to support the full implementation of the new contract for shelter services, animal code enforcement, field services and licensing services within the Police Department. The City Spay and Neuter Clinic appropriations will remain in the Central Services Department’s operating budget; its revenues and appropriation are adjusted to recognize additional fee revenues and associated expenditures. All of the additional Animal Service expenditures in this Supplemental Budget are backed by additional revenues from clinic services, animal license sales, and shelter and adoption fees, which total $331,000, so there a zero net impact to the General Fund. General Fund Revenue Adjustments This Supplemental Budget includes a total of $1,765,420 in General Fund (Main Subfund) revenue increases, not including Animal Services revenue adjustments described above. These revenues include grant revenues rebudgeted from the prior fiscal year, new FY13 grant revenues, Police S:\CMO\2012 Council Agendas\M121210\S1212104.doc