RES 97030 - Laserfiche WebLink

Undesignated After all midyear adjustments and transfers are made, a remaining balance of $1.3 million is expected (including balances from Quarter 1 adjustments). Use of these funds will be examined during the upcoming Operating Budget and CIP review. It is possible that some of this money will be needed to supplement funding to our Replacement Funds and to complete existing CIP projects. SUMMARY OF RECOMMENDED REVISED GENERAL FUND BUDGET Net recommended adjustments to General Fund revenue projections reflect a $2.76 million increase due primarily to property and hotel taxes, building fee revenues, interest income, and a one-time PERS credit. Staff is recommending that net expenditure appropriations be increased by $294,000; reflecting the use of salary savings ($760,000 million) for overtime, equipment and services primarily related to the development fees collected and special projects. Staff is recommending that $500,000 be transferred to the Workers Comp Fund and Retirees' Medical Fund to make up for previous funding shortfalls; and that $300,000 be transferred to the Facility Renovation and Data Processing Replacement Funds to help fund significant expenditures expected in the next two year budge~. With these recommended changes to the General Fund 1996-97 Budget, there will be a projected increase of $1.637 million added to the General Fund Reserves. Staff is recommending that $130,000 be added to the Reserve for Economic Uncertainties, $400,000 be added to the Carryover Reserve to help fund Building and Public Works costs in 1997-98, and the remaining $1.11 million be left undesignated until the upcoming Operating and CI2P budgets are presented to Council in June. WATER AND SEWER OPERATING FUNDS Water Maintenance and Operating .(M & O) Fund Only minor adjustments are being recommended to the Water Division budget, as reflected in Appendix B (page 18). Actual ending fund balance last June 30, 1996 was $2.95 million. Projected ending fund balance for the year ending June 30, 1997 is $3.37 million, including $46,000 for debt service. This reserve is necessary for cash flow, contingency, and to improve bond ratings, which will in turn lower borrowing costs. Optimally, the Fund should maintain a reserve of approximately 30% or $3 million. Any excess balances in the reserve could be used for capital replacement to help offset future rate increases that might otherwise be necessary. SR97:110 10