1976-12-14 - Laserfiche WebLink

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December 4, 1976 TO: The Honorable Mayor and Members of the Council FROM: Thomas F. Lewcock, City Manager SUBJECT: Annual Contingency Transfer As we move into the month of December, we have the eleven prior months of experience to aid us in projecting required expenditures for the General Fund Operating Budget. Each year at this time we present to the Council a contingency fund transfer in order to fund .each department adequately for. the remainder of the year. Our policy has continually been to recommend transfers which have become necessary because of extraordinary circum- stances not contemplated when the budget was put together and do not see it in any way as a vehicle to permit expenditures beyond the authorized ceiling. You will note on the resolution of transfer that some $30,000 is recommended to be transferred from the Contingency Fund to various depart- ments within the General Fund. As of October 31, 1976, $40,768 remained in the Contingency Fund. Barring additional necessary transfers, this should mean that at year end approximately $10,000 of the Contingency Fund will not be expended. Additionally, we have had a continuing practice of transferring from Contingency even though there may be monies available in. given departments to cover portions of the needed transfer. This has been done because normally the department has not expended its full budget due to the fact that it did not for the full year operate at full authorized employment strength. We prefer, however, to keep the budgeted amounts as shown so that this will reflect in the audit and the upcoming budget and be a realistic statement of the departments full authorized strength. It is estimated that the General Fund Operating Budget expenditures, exclusive of the Contingency Fund, will be in the neighborhood of $15,000 less than that which was budgeted. In total, then, for 1976 it is estimated that we will expend $25,000 less than was appropriated. While this does indicate good budgetary control, it does not necessarily have a positive impact on the City's year-end financial position. The reason for this is that some $60,000 in unappropriated surplus was used to balance the budget. This means that if revenues are as were projected, it would be necessary to expend $60,000 less than budgeted if the General Fund surplus is to remain the same. In other words, if General Fund revenues are as were projected in the budget, the General Fund surpluswould be expected to be $40,000 smaller than year end 1976. We have no sound basis at this time to project what our revenues will be; however, we do have good reason to believe that they will be in excess of the figure projected, and, therefore, the General Fund should remain very sound.