TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY

DATE: MAY 6, 2003

SUBJECT: BUDGET RESOLUTION TO FORMALY ADOPT CONTINGENCY

PLAN

Staff Coordinator: Kathryn Downs, Accounting Manager

RECOMMENDATION:

Adopt Resolution No. 2003- , amending Resolution 2002-45, the budget appropriation for FY2002-2003, to decrease budgeted appropriations in the General fund, Street Maintenance fund and Capital Improvements Projects fund.

BACKGROUND:

The City Manager presented a short-term budget contingency plan at the February 18, 2003 City Council meeting. The contingency plan detailed recommendations to help the City Council plan for the possible elimination of Vehicle License Fee backfill from the state. The attached resolution merely formalizes City Council actions taken on February 18, 2003. The attached resolution details the following FY2002-2003 budget appropriation reductions:

1. Emergency Preparedness:
1. Reduced Professional Services account from $55,600 to $26,900 (savings of $28,700).
2. Capital Outlay:
1. Reduced the Traffic Signal account from $108,000 to $0.
2. Deferred the FY2002-03 Residential Overlay project until the next fiscal year (savings of approximately $623,000).
3. Street Maintenance:
1. Deferred the FY2002-03 Slurry Seal project until the next fiscal year (savings of approximately $500,000).

FISCAL IMPACT:

Based on City Council action at the February 18, 2003 City Council meeting, staff has prepared the attached budget resolution, which reduces budgeted appropriations for FY2002-2003 in the amount of $1.26 million. As a result, the projected fund balance as of June 30, 2003 for the General fund is expected to be $8.2 million.

Respectfully submitted,
Dennis McLean
Director of Finance and Information Technology

Reviewed:
Les Evans
City Manager