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HomeMy WebLinkAboutItem 3 - Supplemental Budget 2EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Public Hearing and Action: Resolution 4829 Adopting a Supplemental Budget; Making Appropriations for the City of Eugene for the Fiscal Year Beginning July 1, 2004 and Ending June 30, 2005 Meeting Date: March 7, 2005 Agenda Item Number: 3 Department: Central Services Staff Contact: Kitty Murdoch www. cl. eugene, or. us Contact Telephone Number: 682-5860 ISSUE STATEMENT City Council approval of the second supplemental budget for FY05 is requested. Oregon Local Budget Law (ORS 294.480) allows for supplemental budgets for "an occurrence...which had not been ascertained at the time of the preparation of a budget for the current year..." Supplemental Budget #2 consists of $1 million in proposed changes to the FY05 Adopted Budget. A brief description of the proposed transactions is provided in Attachment A. This supplemental budget does not authorize any increased property tax levy. BACKGROUND The supplemental budget that occurs in March of a fiscal year recognizes budget authority for activities previously authorized by the council for the current fiscal year and provides other necessary adjustments to budget authority that are deemed essential for operation of city programs. The requested budget changes are described below. General Fund There are three changes proposed for the General Fund budget: 1) A request from the Planning and Development Department for one-time funding for the initial start- up of the rental housing program authorized by the City Council on November 22, 2004. The request moves $75,000 from the Reserve for Revenue Shortfall to the Planning and Development Department to support two months of staffing, the initiation of a rental housing database, and materials and services support for outreach and education efforts. Revenues collected by the Rental Housing program will replenish the reserve in FY06. 2) A request from the Police Department to transfer equity of $247,000 from the closure of the Interagency Narcotics Enforcement Team (1NET) Fund to the General Fund and establish budget authority for a Methamphetamine Lab Response Program in the Police operating budget. 3) A request to establish budget authority in the Library, Recreation and Cultural Services Department for $32,061 for the State Ready to Read Grant. The FY05 award is $18,489. The FY04 unspent balance of the grant was $13,572. This amount is reappropriated to the department's operating budget from the Reserve for Revenue Shortfall. L:\CMO\2005 Council Agendas\M050307\S0503073.doc Other Funds Four requests for budget authority are being proposed in other funds. They are: 1) The Eugene City Council adopted an amendment for a two-cent increase in the existing local motor vehicle fuel tax on January 24, 2005. This request recognizes $537,500 in expected additional revenue in FY05 and increases capital appropriation in the Transportation Utility Fund for the Street and Alley Preservation program by the same amount. 2) This request recognizes intergovernmental payments from partner agencies and revenues from pre- Ballot Measure 3 confiscations, and closes the Interagency Narcotics Enforcement Team (1NET) Fund. Fund assets ($247,000) are transferred to the General Fund for a Methamphetamine Lab Response Program in the Police Department. The 1NET agreement between the partner agencies (Lane County, Springfield, and Eugene) was dissolved in early FY05. 3) The budget for the General Obligation Debt Service Fund underestimated interest expense for the Parks and Open Space Bonds sold in 2004 by $3,000. This request increases interest expense and reduces the fund's Debt Service Reserve by $3,000. 4) The Library Bond Debt Service Fund requests expenditure authority of $271,412 to provide an arbitrage rebate on the Library Full Faith and Credit Obligations, Series 2000 as required by federal law. The Arbitrage Rebate Reserve in the fund is reduced by the same amount. Expenditure authority is needed immediately to carry out City Council direction or to meet legal or program requirements. RELATED CITY POLICIES Not applicable. COUNCIL OPTIONS Particular requests requiring more information or discussion may be removed from the supplemental budget and delayed for action until the third supplemental budget in June. In certain cases there may be a financial or legal impact to delaying budget approval. Council may also adopt amended appropriation amounts or funding sources for specific requests in the supplemental budget. CITY MANAGER'S RECOMMENDATION The City Manager recommends adoption of the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to adopt Resolution 4829 adopting a Supplemental Budget; making appropriations for the City of Eugene for the Fiscal Year beginning July 1, 2004 and ending June 30, 2005. ATTACHMENTS A. Transaction Summary B. Resolution L:\CMO\2005 Council Agendas\M050307\S0503073.doc FOR MORE INFORMATION Staff Contact: Kitty Murdoch Telephone: 682-5860 Staff E-Mail: kitty.m.murdoch~ci.eugene.or.us L:\CMO\2005 Council Agendas\M050307\S0503073.doc Attachment A Transaction Summary 010 General Fund FY05 FY05 FY05 FY05 Adopted SB1 Action SB2 Action Revised I. RESOURCES BEGINNING WORKING CAPITAL 27,577,069 8,023,613 0 35,600,682 CHANGE TO WORKING CAPITAL REVENUE Taxes 73,120,164 402,000 0 73,522,164 Licenses/Permits 3,548,400 1,505,868 0 5,054,268 Intergovernmental 2,422,879 1,260,122 18,489 c 3,701,490 Rental 47,000 0 0 47,000 Charges for Services 10,799,412 117,278 0 10,916,690 Fines/Forfeitures 3,171,688 0 0 3,171,688 Miscellaneous 760,448 0 0 760,448 Interfund Transfers 6,695,037 0 247,000 b 6,942,037 Total Revenue 100,565,028 3,285,268 265,489 104,115,785 TOTAL RESOURCES 128,142,097 11,308,881 265,489 139,716,467 I1. REQUIREMENTS Department Operating Central Services 20,355,418 1,049,562 0 21,404,980 Fire & Emergency Medical Svcs 17,699,785 252,674 0 17,952,459 Library, Rec & Cultural Svcs 16,411,174 428,088 32,061 c 16,871,323 Planning and Development 5,802,971 586,714 75,500 a 6,465,185 Police 32,158,913 1,277,740 247,000 b 33,683,653 Public Works 5,553,322 260,417 0 5,813,739 Total Department Operating 97,981,583 3,855,195 354,561 102,191,339 Capital Projects Total Capital Projects 0 0 0 0 Non-Departmental Debt Service 281,775 0 0 281,775 Interfund Transfers 2,733,483 8,655,000 0 11,388,483 Interfund Loans 62,500 0 0 62,500 Contingency 340,000 (228,000) 0 112,000 Intergovernmental Expenditures 378,000 0 0 378,000 Reserve 9,200,687 380,425 (89,072) a,c 9,492,040 Reserve for Encumbrances 1,353,739 (1,353,739) 0 0 UEFB 15,810,330 0 0 15,810,330 Total Non-Departmental 30,160,514 7,453,686 (89,072) 37,525,128 TOTAL REQUI REM ENTS 128,142,097 11,308,881 265,489 139,716,467 010 Genera~ Fund Main Subfund a) A request from the Planning and Development Department for one-time funding for the initial start-up of the rental housing program authorized by the City Council on November 22, 2004. The request moves $75,000 from the Reserve for Revenue Shortfall to the Planning and Development Department to support two months of staffing, the initiation of a rental housing database, and materials and services support for outreach and education efforts. Revenues collected by the Rental Housing program will replenish the reserve in FY06. Main Subfund (continued) b) A request from the Police Department to transfer equity of $247,000 from the closure of the I nteragency Narcotics Enforcement Team (INET) Fund to the General Fund and establish budget authority for a Methamphetamine Lab Response Program in the Police operating budget. C) A request to establish budget authority in the Library, Recreation and Cultural Services Department for $32,061 for the State Ready to Read Grant. The FY05 award is $18,489. The FY04 unspent balance of the grant was $13,572. This amount is reappropriated to the department's operating budget from the Reserve for Revenue Shortfall. 133 Transportation Utility Fund FY05 FY05 FY05 FY05 Adopted SB1 Action SB2 Action Revised I.RESOURCES BEGINNING WORKING CAPITAL 729,666 423,898 0 1,153,564 CHANGE TO WORKING CAPITAL REVENUE Taxes 2,000,000 0 537,500 a 2,537,500 Intergovernmental 0 700,000 0 700,000 Miscellaneous 10,000 0 0 10,000 Total Revenue 2,010,000 700,000 537,500 3,247,500 TOTAL RESOURCES 2,739,666 1,123,898 537,500 4,401,064 I1. REQUIREMENTS Department Operating Total Department Operating 0 0 0 0 Capital Projects Capital Projects 1,744,000 1,124,600 537,500 a 3,406,100 Capital Carryover 316,225 (68,638) 0 247,587 Total Capital Projects 2,060,225 1,055,962 537,500 3,653,687 Non-Departmental Debt Service 21,000 0 0 21,000 Interfund Loans 235,000 0 0 235,000 Interfund Transfers 0 13,400 0 13,400 Balance Available 423,441 54,536 0 477,977 Total Non-Departmental 679,441 67,936 0 747,377 TOTAL REQUIREMENTS 2,739,666 1,123,898 537,500 4,401,064 133 Transportation Utility Fund a) The Eugene City Council adopted an amendment for a two-cent increase in the existing local motor vehicle fuel tax on January 24, 2005. This request recognizes $537,500 in expected additional revenue in FY05 and increases capital appropriation in the Transportation Utility Fund for the Street and Alley Preservation program by the same amount. 141 iNET Fund FY05 FY05 FY05 FY05 Adopted SB1 Action SB2 Action Revised I. RESOURCES BEGINNING WORKING CAPITAL 0 73 0 73 CHANGE TO WORKING CAPITAL REVENUE Intergovernmental 0 0 108,000 a 108,000 Charges for Services 69,000 0 0 69,000 Fines/Forfeitures 0 0 134,646 a 134,646 Miscellaneous 1,000 0 4,354 a 5,354 Total Revenue 70,000 0 247,000 317,000 TOTAL RESOURCES 70,000 73 247,000 317,073 I1. REQUIREMENTS Department Operating Police 70,000 0 0 70,000 Total Department Operating 70,000 0 0 70,000 Capital Projects Total Capital Projects 0 0 0 0 Non-Departmental Interfund Transfers 0 0 247,000 a 247,000 Balance Available 0 73 0 73 Total Non-Departmental 0 73 247,000 247,073 TOTAL REQUIREMENTS 70,000 73 247,000 317,073 141 INET Fund a) This request recognizes intergovernmental payments from partner agencies and revenues from pre-Ballot Measure 3 confiscations, and closes the Interagency Narcotics Enforcement Team (INET) Fund. Fund assets ($247,000) are transferred to the General Fund for a Methamphetamine Lab Response Program in the Police Department. The INET agreement between the partner agencies (Lane County, Springfield, and Eugene) was dissolved in early FY05. 211 General Obligation Debt Service Fund FY05 FY05 FY05 FY05 Adopted SB1 Action SB2 Action Revised I.RESOURCES BEGINNING WORKING CAPITAL 602,040 43,238 0 645,278 CHANGE TO WORKING CAPITAL REVENUE Taxes 4,243,396 0 0 4,243,396 Miscellaneous 43,000 0 0 43,000 Total Revenue 4,286,396 0 0 4,286,396 TOTAL RESOURCES 4,888,436 43,238 0 4,931,674 I1. REQUIREMENTS Department Operating Total Department Operating 0 0 0 0 Capital Projects Total Capital Projects 0 0 0 0 Non-Departmental Debt Service 4,399,271 0 3,000 a 4,402,271 Reserve 0 43,238 (3,000) a 40,238 UEFB 489,165 0 0 489,165 Total Non-Departmental 4,888,436 43,238 0 4,931,674 TOTAL REQUIREMENTS 4,888,436 43,238 0 4,931,674 211 General Obligation Debt Service Fund a) The budget for the General Obligation Debt Service Fund underestimated interest expense for the Parks and Open Space Bonds sold in 2004 by $3,000. This request increases interest expense and reduces the fund's Debt Service Reserve by $3,000. 221 Library Bond Debt Service Fund FY05 FY05 FY05 FY05 Adopted SB1 Action SB2 Action Revised I.RESOURCES BEGINNING WORKING CAPITAL 772,599 1,529 0 774,128 CHANGE TO WORKING CAPITAL REVENUE Intergovernmental 2,345,000 0 0 2,345,000 Miscellaneous 14,000 0 0 14,000 Total Revenue 2,359,000 0 0 2,359,000 TOTAL RESOURCES 3,131,599 1,529 0 3,133,128 II.REQUIREMENTS Department Operating Total Department Operating 0 0 0 0 Capital Projects Total Capital Projects 0 0 0 0 Non-Departmental Debt Service 2,350,000 0 271,412 a 2,621,412 Reserve 781,599 1,529 (271,412) a 511,716 Total Non-Departmental 3,131,599 1,529 0 3,133,128 TOTAL REQUIREMENTS 3,131,599 1,529 0 3,133,128 221 Library Bond Debt Service Fund a) The Library Bond Debt Service Fund requests expenditure authority of $271,412 to provide an arbitrage rebate on the Library Full Faith and Credit Obligations, Series 2000 as required by federal law. The Arbitrage Rebate Reserve in the fund is reduced by the same amount. Resolution Number A RESOLUTION ADOPTING A SUPPLEMENTAL BUDGET; MAKING APPROPRIATIONS FOR THE CITY OF EUGENE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004, AND ENDING JUNE 30, 2005. The City Council of the City of Eugene finds that Adopting the Supplemental Budget and Making Appropriations is necessary under ORS 294.480. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, A Municipal Corporation of the State of Oregon, as follows: Section 1. That the Supplemental Budget for the City of Eugene, Oregon, for the fiscal year beginning July 1, 2004, and ending June 30, 2005, as set forth in attached Exhibit "A" is hereby adopted. Section 2. The Supplemental amounts for the fiscal year beginning July 1, 2004, and ending June 30, 2005, and for the purposes shown in attached Exhibit "A" are hereby appropriated. Section 3. That this Supplemental Budget is prepared in accordance with ORS 294.480(1)(a), which authorizes the formulation of a supplemental budget resulting from "An occurrence or condition which had not been ascertained at the time of the preparation of a budget for the current year or current budget period which requires a change in financial planning." Section 4. This resolution complies with ORS 294.480(5), and does not authorize an increase in the levy of property taxes above the amount published in the Annual Budget publication. The foregoing resolution adopted this 7th day of March, 2005. City Recorder EXHIBIT "A" In dollars GENERAL FUND Departmental Operating Library, Recreation and Cultural Services 32,061 Planning and Development 75,500 Police Department 247,000 Total Departmental Operating 354,561 Non-Departmental * Reserves (89,072) Total Non-Departmental (89,072) TOTAL GENERAL FUND 265,489 TRANSPORTATION UTILITY FUND Capital Projects Capital Projects 537,500 Total Capital Projects 537,500 TOTAL TRANSPORTATION UTILITY FUND 537,500 INET FUND Non-Departmental Interfund Transfer 247,000 Total Non-Departmental 247,000 TOTAL INET FUND 247,000 GENERAL OBLIGATION DEBT SERVICE FUND Non-Departmental Debt Service 3,000 * Reserves (3,000) Total Non-Departmental 0 TOTAL GENERAL OBLIGATION DEBT SERVICE FUND 0 LIBRARY BONDS DEBT SERVICE FUND Non-Departmental Debt Service 271,412 * Reserves (271,412) Total Non-Departmental 0 TOTAL LIBRARY BONDS DEBT SERVICE FUND 0 TOTAL REQUIREMENTS -ALL FUNDS 1,049,989 * Reserves, Balance Available, and UEFB amounts are not appropriated for spending and are shown for information purposes only.