Agenda Packets - 1989/11/20 - Laserfiche WebLink

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TO: Mayor & Council41, �) FROM: Don Brager, Finance Director - Treasurer DATE: November 15, 1989 SUBJECT: Budget Transfers Several purchases and projects which were approved in 1983 and intended to be funded by the 1988 budget were not delivered or completed until 1989. Fund balance was designated for committed contracts for these purchases and projects as they could not, under generally accepted accounting principles, be considered expenses of 1988 because either goods were not delivered or services contracted for were not performed in 1988. As a consequence they are considered to be 1989 expenses. Due to the substantial amount of these purchases and contracts the departments that they have been charged to will be subetantially over hudaet. The manner in which most governmental units have dealt with this situation is to modify the current year's budget in the amount of the expenses. Staff proposes that this be done. The purchases and projects and budget transfers required are listed below. 1) Office divider walls were purchased for the clerical staff from American Office Products in the amount of $10,224 and were charged to 100-4190-703 City Hall, Equipment. Staff recommends that this Equipment budget be increased by that amount and that under budgeted revenues the appropriation of fund balance account be increased by a like amount to offset the expenditure budget increase and thus maintain a balanced budget. 2) In the 1988 budget $5,000 of the Parks budget for capital expenditures was to be used for the Silver View Park irrigation system. Staff recommends that this amount be transferred from the General Fund to the Park Improvement Fund as the cost of the system was charged to that fund. 3) The replacement of the existing water system controls with new more efficient controls was approved in December 1988. Final payment to the contractor was made in October 1989. Total project costs were $64,630. Staff recommends that the budget of account 700-4121-703 be increased by this amount to cover the costs of the project and that the appropriation of retained earnings revenue account be increased by a like amount. 4) The contract for the rebuilding of the pump and motor of well number 3 was approved in December 1988. The project was completed in the summer of 1989 at a cost of s10,557. Staff recommends that the budget of account 700-4121-513 be increased by the cost of the project and that the appropriation of retained earnings revenue account be increased by a like amount. RECOMMENDATION: Direct staff to prepare a resolution authorizing the above budget transfers and to place it on the Consent .agenda for the next Council Meeting.