[Council Communication]  [Attachments]

Council Communication

Title:	A Public Hearing and Resolution Adopting a Supplemental Budget for FY 2003-2004.
Dept:	Finance Department
Date:	June 29, 2004
Submitted By:	Lee Tuneberg, Finance Director
Approved By:	Gino Grimaldi, City Administrator

Synopsis:	A Public Hearing and a resolution are needed to adjust the FY 2003-04 Budget and keep the City in compliance with Oregon Budget Law. This year we saw completion of Siskiyou Boulevard and related peripheral projects at the same time that Tolman Creek and Strawberry Lane street projects were substantially completed. Shifts in project timing and expense recognition are the primary reasons for this budget change, not cost overruns. Staff projects capital expenditures in February and the budget is set before most of June's work is in progress. A delay of a project one month can impact the budget by several hundred thousand dollars. If this happens and no other projects shift the next June a supplemental budget change may be needed to meet Oregon Budget Law compliance. Delays in projects from the prior year and the inability to provide Local Improvement District financing (Bancroft bonds) until final assessment in FY 2004-05 has caused the need to increase appropriations for FY 2003-04. Paula Brown will review the changes in project timing at the hearing. This supplemental budget recognizes added jurisdictional exchange revenues and related appropriations required and an internal loan to provide adequate appropriations. Internal borrowing will only occur to the extent necessary and repayment will be made in FY 2004-05 by bond proceeds and assessments paid directly to the city.
Recommendation:	Staff recommends approval of the attached resolution.
Fiscal Impact:	Adjusts the FY 2003-2004 budget for unforeseen events including unanticipated revenues and corresponding expenses as follows: 000 a. Appropriates for an increased amount of Intergovernmental Revenue in the Street Fund recognizing receipt of over $350,000 in jurisdictional exchange revenue and the related project expenditures. b. Increases appropriations in the Street Fund for total costs of the Tolman Creek and Strawberry Lane projects recognizing an interfund loan from the Wastewater Fund. The Wastewater Fund was a participant in the above projects but did not use all of the appropriations established for its portion thus being able to make the internal loan. c. Borrowing and lending of the cash will only be done if, and to the extent necessary.
Background:	There are three ways in which to change appropriations after the Budget is adopted. 000 1. A transfer of appropriations decreases an appropriation and increases another. This is the simplest budget change allowed under Oregon Budget law. This does not increase the overall budget. This is approved by a City Council resolution. 2. A supplemental budget of less than 10 percent of total appropriations within an individual fund follows a process similar to the transfer of appropriations. 3. A supplemental budget in excess of 10 percent of total appropriations requires a longer process. This process includes a notice in the paper and a public hearing. The third type of budget change is necessary and has been duly advertised and noticed. Attached is a resolution for your approval. The recommended changes in the budget are explained after each request. Attached is the notice published in the local paper on June 23, 2004.
Attachments:	•   Resolution •   Notice of Supplemental Budget

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