HomeMy WebLinkAboutItem 4.8 Budget Adjustments FY 1989-90 (2) 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.