SR 05:166 - Laserfiche WebLink

which is primarily due to closing certain projects such as various storm drain projects ($648,194) and the Radio System project ($144,575). In the Water CIP (Quarter 2 adjustments page B23), interest income estimates did not change. The estimate for Water Connection developer fees has been decreased by $404,094. The estimated ending fund balance has been increased by $1,238,091 because of closing old projects. In the Sewer CIP (Quarter 2 adjustments page B25), interest income estimates did not change. The estimate for Sewer Connection developer fees has been decreased by $129,675. The estimated ending fund balance has been increased by $309,922 because of closing old projects. The 2005-06/2008-09 CIP as presented in a separate staff report (SR 05:168) assumes these midyear changes are approved. Thus any midyear increases or decreases in projected fund balances as of June 30, 2005 reflected herein, have already been factored into the upcoming CIP. CONCLUSION Staffhas now completed the update to the current year (FY05) Operating and Capital Improvement Program (CIP) budgets, as well as preparation of the upcoming Operating and CIP budgets. The current year update is presented herein and is an integral part of the solution to expected State impacts in the upcoming two-year budget. Therefore, the recommended amendments to the current FY05 operating budget in conjunction with the adoption of the upcoming FY06/FY07 operating budget should result in balanced budgets for all three years, barring any major unforeseen events. The upcoming Operating and CIP budgets were presented to the City Council at a budget workshop on June 8, 2005. Following adoption of the midyear amendments for FY05 proposed herein, the FY06 and FY07 budgets will also be considered for adoption at the regularly scheduled June 21, 2005 City Council meeting. As part of staff's recommendations, the Temporary Recession Reserve will remain intact through the next two-year budget cycle. In the event that the economy is slower to recover than projected, and/or additional State budget impacts materialize, the City will then be able to utilize the Temporary Recession Reserve as an interim measure until the budget can be brought back into balance. Respectfully submitted, Steven Bocian Susan Rossi Nelson Fialho Deputy City Manager Director of Finance City Manager SR 05:166 Page 9