[Council Communication]  [Memo]  [ Budget Committee Changes ]

Council Communication

Title:	Public Hearing to consider adopting the annual budget
Dept:	Finance Department
Date:	June 3, 2003
Submitted By:	Lee Tuneberg, Finance Director
Approved By: ..........................	Gino Grimaldi, City Administrator

Synopsis:	The third phase of the annual budget process is the City Council holding a public hearing and adopting the budget as approved by the Budget Committee with or without further adjustments by Council. Oregon Budget law allows the elected body to increase expenditures by $5,000 or 10% (whichever the greater) of any fund without further review and approval by the Committee. Council cannot increase the tax rate without referring the change back to the committee for approval. Changes to any fund beyond the 10% requires re-publishing the amended budget and a second hearing to be held prior to July 1. Enclosed within the packet are four actions requiring Council approval to complete this phase and "set" the budget for FY 2003-04: 1. A resolution certifying Ashland qualifies for State subventions. 2. A resolution declaring the City's election to receive State subvention revenue. 3. A resolution adopting the annual budget and making appropriations. 4. An Ordinance levying taxes for the period of July 1, 2003 - June 30, 2004.
Recommendation:	Staff recommends approval of the accompanying three resolutions and first reading of the ordinance.
Fiscal Impact:	Establishes the budget, levies taxes and authorizes state subvention revenues to be received for FY 2003-04.
Background:	The Budget Committee and/or Budget Sub Committee met numerous times this winter and spring and thoroughly reviewed this budget. On May 8, 2003, the Budget Committee met and approved the budget and recommended it for adoption. The Council must take action as proscribed above to establish the FY 2003-2004 budget. The Committee approved changes are reflected within the attached memo and table.

DATE: June 3, 2003
TO: Ashland City Council
FROM: Lee Tuneberg, Budget Officer
RE: Fiscal Year 2003-2004 Budget Message Addendum

Overview
I am pleased to submit the approved Fiscal year 2003-/2004 Budget in the amount of $87,432,105.

The approved budget differs from that proposed in total by $133,000. A detailed accounting of the changes to the expenditure classifications follows this narrative. There were no structural revisions made to those originally proposed by management.

General Fund
Finance - Social Service Grants expenditures were increased $25,000 beyond the Proposed amount of $107,400 for a total of $132, 400 in FY 2003-2004. The additional $25,000 is a one-year increase and will not be re-budgeted or increased in FY 2005.

Public Works - Boulevard Maintenance was deleted from the General Fund and returned to the Street Fund where it had been budgeted in prior years reducing expenditures by the total proposed amount of $151,100. The net effect across funds is zero.

Transfers was increased by $133,000 from the Proposed amount of $500 to fund School athletic field maintenance in a similar fashion as the prior year. The increased amount is a transfer to the Parks & Recreation Fund where it will be expended causing the FY 2004 Appropriation level to increase by that amount.

Ending Fund Balance was reduced by $6,900 to $1,315,669 as part of the above General Fund changes.

Street Fund
Public Works - Street Operations increased $151,100 for Boulevard Maintenance as part of the General Fund changes explained above. This amount is also a reduction in Ending Fund Balance unless there is a change in revenues to pay for this work. This change returns the expense to this fund as it had been budgeted in prior years.

Electric Fund
Other Financing Uses was added to the Proposed Budget funding an Interfund Loan of $400,000 to the Telecommunications Fund, Ashland Fiber-optic Network recognizing the potential of a revenue shortfall in Charges for Service. The change is a reduction of $400,000 in Electric Fund's Ending Fund Balance and there is no impact in the Telecommunications Fund appropriations since this is a change in revenue.

Central Services Fund
Administration Department appropriation was reduced by $73,275 to $1,131,131 reflecting a) a budget input error of $30,000 b) reduction in the Assistant Attorney wage of $20,000 and c) reduction in the amount budgeted for the City Source production of $23,275.

Parks and Recreation Fund
Parks Division appropriations were increased by $133,000 by authorization of the Budget Committee to reflect increased ground maintenance support to School District 5 in return for greater public access to school grounds. Recognition of the Interfund Transfer from the General Fund offset this appropriation.

There were no changes to the Property Tax levies proposed by the Budget Committee.

• Budget Committee Changes
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Budget Committee Changes 2004.pdf (50.9KB)

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