RES 89169 - Laserfiche WebLink

spent on Capital Improvement projects. Since the Budget was adopted, it has become evident that the General Fund is in a better financial position to pay those costs than are the Capital Improvement Funds. This is evidenced by the decision to fund several added capital projects this year from the General Fund, and by the need to fund some of next year's requested capital projects from the General Fund. Staff, therefore, recommends that the budgeted transfer of $515,399 to the General Fund from the Capital Improvement Funds be deleted from the 1988-89 Budget. The beginning fund balances presented in the 1989-90/1993-94 Capital Improvement Program assumes that this transfer from the CIP funds will not be made. Earlier this year, Council approved a contract with the firm of Hinderliter, de Llamas and Associates to audit the allocations of sales tax to the City. The contract provided compensation on the basis of a percentage of recovered sales tax dollars. It is estimated that the City will receive an additional $600,000 in sales tax this fiscal year as a result of the discovery of several geographic misallocations of sales tax. These additional funds were included in the revenue estimates, but a budget amendment is required in the amount of $90,000 for the agreed- upon commission due the contractor. Staff recommends that Council amend the General Fund Budget by $90,000 to pay the commission to the sales tax auditors. Water Fund When staff prepared the 1988-89 Budget, an estimate was made of the cost of water to be purchased from Zone 7 this fiscal year. This cost estimate now appears to be too conservative. Staff recommends that Council amend this Water Fund Budget by $215,000 to more accurately reflect the current estimated cost of purchased water this year. Respectfully submitted, Susan Rossi es R. Walker Assistant Finance Director City Manager SR/JRW/ml(sr89157.mll) SR:89:157