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<br />CJerklcll t=lIlld f lIlHI 1:3,11(JIH ~ 1\ (:;S<:::,I \ '- f ldhl !\Pf [UJed III Addlll(Jl1S III I:=ndlllq FUlld
<br />DeslglldtlOrlS Galc1llce Buclget Reser ves B(ilclllce
<br />Reserve for Carryovers (see below) 4,259,605 (2,759,605) 3,153,565 4,653,565
<br />10% Reserve for Economic
<br />Uncertainties 8,000,000 450,000 160,000 8,610,000
<br />Capital Improvement Program Reserve 1,800,000 - 2,000,000 3,800,000
<br />Reserve for Golf Debt Service 3,600,000 (1,100,000) - 2,500,000
<br />Temporary Recession Reserve 5,100,000 - - 5,100,000
<br />Reserve for Inventories 44,422 - (115 44,307
<br />Total 22,804,027 13,409,605 5,313,450 24,707,872
<br />
<br />Reserve for Carrvovers (from above)
<br />~ Department Requests, Purchase Orders, Contracts $ 1,859,840
<br />~ Add to current budgeted Contingency 130,351
<br />~ Energy Programs 250,000
<br />~ 800 MHz Radio Project 1,025,000
<br />~ Veterans Memorial Building Furniture & Fixtures 75,000
<br />~ City-wide Tree Trimming Program 200,000
<br />~ Grant Revenue Carryover (386.626)
<br />Net Carryover $3,153,565
<br />
<br />Aside from the Reserve for Carryovers (explained later in this report), staff is recommending
<br />that $2 million of the positive budget variance be used to increase the Capital Improvement
<br />Program Reserve (CIPR), and $160,000 be used to increase the Reserve for Economic
<br />Uncertainties to maintain the 10% level consistent with the City's Reserve Policy. As the
<br />Council recalls, as part of the FY 2005-06 Mid-Term Capital Improvement Program, the City
<br />Council approved the establishment of a Capital Improvement Program Reserve (CIPR). The
<br />CIPR represents an approach to funding current and future CIP projects that differs from the
<br />past practice of establishing multiple project reserves for individual CIP projects. Under the
<br />new approach available funding for future CIP projects will be placed in the CIPR to be made
<br />available based on City Council priorities. This enables the Council to openly discuss the
<br />funding of CIP projects as community needs and expectations change without eliminating or
<br />modifying existing project reserves. Staff is recommending increasing the CIPR an additional
<br />$2 million which will result in balance of $3.8 million at the close of the prior fiscal year.
<br />However, since the beginning of the current fiscal year, City Council has authorized the use of
<br />$603,072 of the CIPR for Kottinger Creek restoration ($228,313), Donlon School sports field
<br />($150,000), and renovation of the Veteran's Memorial Building ($224,759). The budget will be
<br />amended to reflect that action in the 1st Quarter FY 2006-07 Financial Report that will be
<br />presented to City Council in December. After making that budget adjustment the balance ofthe
<br />CIPR will be approximately $3.2 million. As stated above, staffwill work with the City Council
<br />toward identifying capital improvement priorities for the balance of this funding.
<br />
<br />SR 06:259
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