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HomeMy WebLinkAbout4.8 Budget Adjustments FY 1989-90 K CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 25, 1990 SUBJECT: 1989-90 Budget Adjustments (Prepared by Phil Molina, Finance Director) EXHIBITS ATTACHED: None RECOMMENDATION: 1 . Authorize a transfer of $109,409 from the General 7d9CFund Contingent Reserve Account to satisfy the budget increases needed in Police, Finance and part of the City Attorney's budget. 2. Appropriate $55,461 from the General Fund Balance to satisfy the remaining amount needed in City Attorney's budget. 3. Appropriate the amount of $1 , 087 from the San Ramon Assessment District Fund Balance for the operating costs incurred that will exceed the amount budgeted. 4. Appropriate the amount of $8,643 from the Internal Service Fund for the depreciation charges and the maintenance costs incurred. FINANCIAL STATEMENT: Current Estimated Amount of Budget Expenditures Budget Change City Attorney $ 104, 155 . $ 194,420 $ (90,265) Finance 175, 160 189,055 (13,895) Police 2, 179, 752 2,240,462 (60,710) San Ramon Assmnt 112,888 113,975 (1 ,087) Internal Sery fund 206,900 215,543 (8, 643) Total $2,778,855 $2,953,455 $(174,600) DESCRIPTION: According to the City's accounting procedures (Section VI.G. ) , the City Council must authorize budget changes which exceed an individual budget activity. At this time, only the City Attorney's Department reflects expenditures that exceed their budget, due to the greater than anticipated litigation costs. It is now estimated that the City Attorney's budget will need to be increased by $90,265 for Fiscal Year 1989-90 to provide a sufficient budget balance to pay all anticipated expenditures. Two other departments may also end the year with expenditures that exceed the amount currently budgeted: Finance and Police. The Finance Department budget includes costs for contract accounting services that were provided to Livermore Amador Valley Transit Authority (LAVTA) . Consistent with City Council's past policy, the City contracted directly for the accounting services provided to LAVTA. LAVTA's Director originally estimated that the Authority would need to pay for 3 months of contract accounting services before their new Finance Director could be hired to assume the accounting duties. It actually took approximately six months of contract accounting services before LAVTA's Finance Director could assume full responsibility for the finance activities. One hundred percent of the amount paid by the City was immediately reimbursed to the City by LAVTA. Nonetheless, the Finance Department's budget needs to be adjusted for the expenditures that exceeded the original budgeted amount. Also, the City estimated that the part-time Finance Technician would only be needed 20 hours per week. It was hoped that this amount of time would be enough to accomplish all the work that position performs, which includes bank reconciliation, computer transfer of all accounts receivable billing, financial statement prepara- tion, filing and other clerical duties. Approximately 27 hours per week were needed to perform the duties required of that position during Fiscal Year 1989-90. An increase of $13,895 will satisfy estimated additional COPIES TO: ITEM NO. Y. 7 expenditures beyond the current Finance Budget. This amount will be divided between personnel costs and LAVTA contract accounting costs. At the time the 1989-90 Budget was formalized, the County had not completed their negotiations with the Sheriff's Employees' Union for salary and benefit adjustments. Taking the negotiated settlements into consideration, it appears that the police budget will also need to be adjusted to accommodate total estimated expenditures. An amount of $60,710 will need to be added to the Police contract service personnel budget for Fiscal Year 1989-90. Any amounts of these budget changes that remain unused at year end will be returned to the General Fund balance. The San Ramon Road Assessment District has incurred operating costs of $1 ,087, which were not included in the original Budget. These expenditures will need to be covered by an appropriation of the fund balances in the Assessment District. There are sufficient unobligated balances in the fund to accommodate this need. The Internal Services Fund is also expected to exceed the budgeted amount. The two areas where the change occurs are the service & supplies area and the depreciation area. The depreciation charge does not use any cash, but instead simply provides an accounting for the usage of fixed assets. The City Council should budget for the increased depreciation due to equipment acquisitions approved after the depreciation estimates were prepared last ' year. The other expenses were caused primarily by increased costs °of police vehicle maintenance requirements during the year. The additional amount that needs to be appropriated for police is $8, 643.