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05. Mid-year budget adjustmentsADMINISTRATIVE SERVICES DEPARTMENT CUPERTINO CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 (408) 777-3220 • FAX (408) 777-3109 SUMMARY Agenda Item No. 5 SUBJECT AND ISSUE Meeting Date: February 19, 2008 Review and approve 2007/08 mid-year budget adjustments. BACKGROUND AND FISCAL IMPACT During the year staff reviews the budget and compares it to actual revenues and expenditures. As a result of this review process, the attached mid-year budget adjustments are being presented to the City Council to adjust our original revenue projections and to reflect changes in operating and capital project needs. General Fund Revenues As discussed in the monthly ixeasuxer reports to Council, the revenue budget is being boosted in the sales, property, hotel and utility user tax areas, in investment earnings, and in fines. Budget projections are being reduced for building permits, planning and engineering fees, vehicle license fees, and state mandated cost reimbursements. The overall General Fund revenue budget is $1,252,000 higher from the current budget that was adopted last June. Buried in this protection though is a definite turnaround in the economy. A blistering first half of the year in sales tax revenues is anticipated to be flat in the second half of the year, with declines to be realized in 2008-09. State borrowing and takeaways of up to $1 million in 2008-09 are being forecasted. General Fund Expenditures and Capital Projects Some of the $1,252,000 in additional revenues is needed to fund $374,000 in added General Fund outlays, earmarked mostly for capital work as follows: • Library window storm damage repair - $200,000 • Civic Center Fountain public health protection study - $25,000 • Community Development department office reconfiguration - $50,000 with some funding coming from budget savings in completed capital projects. • Upgrade of vacant Senior Traffic Technician position to Assistant/Associate Civil Engineer - $10,372 prorated this year; $20,744 ongoing annually 5-1 2007/08 Mid-Year Budget Adjustments February 19, 2008 Page 2 of 2 • Various information technology (IT) projects and copier maintenance- $43,750 in General Funds; $20,000 from TT fund. • ADA ramp at Blue Pheasant - $18,000 • Converting archives to digital media - $36,810 • Cable franchise issues - $10,000 In addition the following projects or purchases will be getting new or additional funding resulting in shifts from other budgets and funding sources: • Sterling-Barnhart Park acquisition - $525,000 additional funding shifted from the Lawrence Linear Park purchase budget • Library book drops and stairway modifications - $89,444 from other finished capital projects and County reimbursements • Stocklmeir Orchard rehabilitation - $28,000 from salary savings • Code Enforcement patrol vehicle - $24,000 from replacement reserves • Mobile radio upgrade for public works - $35,000 from replacement reserves Funding for a community charette on the Crossroads Streetscape Plan will be considered for the 2008/09 budget. The remaining $878,000 in additional revenues to the General Fund will be temporarily placed in the capital project reserve pending a review of other current capital projects. The attached lists all of the proposed adjustments in detail. RECOMMENDATION Review and approve the 2007/O8 mid-year budget adjustments. Submi by: Approved for submission: David Woo [ ~„~David W. Knapp Finance Director ~ City Manager Attachments: 2007/08 Mid-Year Budget Adjustments 5-2 City of Cupertino 2007/08 Midyear Budget Adjustments ~~ .s of 2-19-08 Capital Eqaipment/ __ cc A t Namber General Improvemt IT Funds Revenue Adjustments: _ _ Taxes Sales Taxes 110-0000-4020 ~ 1,320,000 Property Taxes 11 p-0000-4010 200,00 0 Transient Occupancy Taxes 110-0000-4030 _ 110,004 Utility Users Taxes 110-0000-4040 1,140,000 UUT Reserve 110-0000-3043 -570,000 Other Taxes (Construction) 110-0000-4060 -370,000 Use_ of Money and Property Investment earnings 110-0000-4211 _ Y 617,000 Intergovernmental VLF 110-0000-4415 _ -146,000 Other State Monies _ 110-0000-4420 -100,965 _ Safe Routes to School -Garden Gate grant adj 420-0000-4430 ~ y -33,500 _ Licenses and Permits 110-0000-4110 -142,000 ~~ Charges for Services 110-4510/4530 -916,000 Fines and Forfeitures 110-0000-4310 110,000 'ether Revenue SCC Library -Book Drop Reimbursement 420-0000-4427 20,000 Operating Transfers In MapGuide improvements ($21,250), security improvements ($5,000), video programming storage ($5,000), advisor for city technology plans ($2,500) 610-0000-4910 33,750 Stocklmeir Orchard Rehab-Phase 1 Study 420-0000-4910 28,000 Civic Center Fountain/Library Windows 420-0000-4910 225,000 Community Development office reconfiguration 420-0000-4910 30,000 Total Adjustments to Revenue $1,252,035. $269,500 $33,750 Expenditure Adjustments: Administrative City Attorney-shift from salaries to contract services 110-1500-7014 47,000 _ 110-150_0-5501 -47,000 Legal fees for cable franchise issues 110-1031-7075 10,000 Administrative Services ___ Code Enf patrol vehicle replacement 630-9820-9400 __ 24,000 Copier maintenance 110-4310-7013 10,000 _ Parks and Recreation ~ ~~ Director salary savings 110-6100-5501 -28,000 ADA Ramp -Blue Pheasant 110-6660-7014 18,000 Pegs 1 City of Cupertino _ 2007/08 Midyear Budget Adjustments As of 2-19-08 Capital Equipment/ Acct Number General _... I_mprovemt IT Funds _ _ Community Development ____ Converting archives to electronic media 110-7200-7014 ~ 15,380 Public Works ~. _ _ ~ M Sr Traffic Tech upgrade to ACE (prorated 50%) 110-8601-5501 10,372 Mobile radio bandwidth changes-City Ha11 630-9820-4400 _ 35,000 i Converting archives to electronic media 110-8101-7014 _ 21,430 Information Technology _ MapGuide improvements ($21,250), PC bulk buying ($20,000 from fund balance}, security improvements ($5,000), video programming storage ($5,000), advisor for city technology plans ($2,500) 10-48xx 3,750 Capital Projects Civic Center Fountain public health protection study 420- 25,000 Library Window storm damage repair 420- 200,000 Sterling-Barnhart Park Acquisition Incr 420-9122-9300 525,004 Lawrence Linear Park $1.5M 420-9127-9300 ____ -525,000 Stocklmeir Orchard Rehab-Phase 1 Study 420- 28,000 Safe Routes to School -Garden Gate grant adj 420-9549-9300 _ -33,500 Library Lighting Project 420-9232-9300 -36,844 ~_ Community Halt Door 420-9233-9300 -46,000 City Hall Kitchenette 110-8501-9300 -6,600 Library Book Drops/Stair Modifications 420- 89,444 Community Development office reconfiguration 420- _ ~ ~ 50,000 Operating Transfers Out _ MapGuide improvements ($21,250), security improvements ($5,000), video programming storage ($5,000), advisor for city technology plans ($2,500) 10-0100 3,750 ' Civic Center FountainJLibrary Windows 110-0100 ~ 225,000 Community Development office reconfiguration 110-0100 30,000 Stocklmeir Orchard Rehab-Phase 1 Study 110-0100 28,000 Total Adjustments to Expenditures $373,932 $269,500 $112,750 Net Fund Impact $878,103 $0 -$79,00() 1'sge 2