#1 Authorize a supplemental appropriation (File Res. #2010-674)
ACCOUNTING DIVISION MEMORANDUM
February 1, 2009
TO: City Council
FROM: Patty Lynch, Comptroller
SUBJECT: Action on a Proposed Resolution Authorizing a 2009 General Fund
Supplemental Appropriation (File Resolution #2010-674)
Summary
The 2009 General Fund budget results indicate that council action is necessary to
provide a budget amendment for funding for Public Works. The Public Works group of
budgets has exceeded its budget appropriation due primarily to snow removal costs and
council action is required to provide a supplemental appropriation in accordance with
Council Policy Statement 58.
Department Recommendation
Staff recommends Council adopt Resolution #2010-674 authorizing supplemental
appropriation for the Public Works budget.
Suggested Motion
Move to adopt File Resolution #2010-674.
City Manager Recommendation
The City Manager recommends approval.
Budget Results
The preliminary 2009 General Fund operating results indicate that actual expenditures
are $469,763, or 1.1% under the amount appropriated. However, Public Works budgets
are $221,768, or 4.2%, over budget due to the snow removal activities exceeding the
2009 budget by $345,038.
Amount
Percentage
Unexpended
Unexpended
(Overexpended)
General Government
$164,743 4.9%
Public Safety
(including Police and Fire)
305,539 1.4%
Public Works
(including Public Works Administration,
Engineering, Street Maintenance & Repairs, Public
(221,768) -4.2%
Buildings and Parking Facilities, Traffic Management,
Transit Subsidy)
Leisure Services
(including Leisure Services
Administration, Senior Citizens Center, Aquatics, Youth
79,869 2.7%
and Adult Recreation, Parks, and Ice Skating Center)
Community Development (including Economic
Development, Community Development and Property
140,719 8.8%
Maintenance)
Supplemental Appropriation Memo
Resolution #2010-674
Other
(including Economic Adjustments, Employee
Fringe Benefits and Insurance, Contingency Account,
661 0.1%
and Special Assessments Transfer)
General City Debt Service
0 0.0%
TOTAL
$469,763 1.1%
Budget Adjustment
In accordance with Council Policy Statement 58, when the adopted program
appropriation does not contain sufficient funds, such funding may be provided by
council action. The supplemental appropriation may be funded by transfers from other
program appropriations or by appropriation from the General Fund’s undesignated fund
balance. To be in accordance with the budget policy, each program, or group of budgets
as listed above, must be within the adopted budget resolution amount. Since the Public
Works program is over budget in 2009 due to excessive snow removal costs, council
action is needed to provide a supplemental appropriation.
In previous years, budget adjustments were structured with a combination of
supplemental appropriations and budget transfers because of limitations imposed by the
State Shared Revenue- Expenditure Restraint Program. The 2009 General Fund
operating budget, as originally adopted, was $1,965,254 under the expenditure restraint
limit. Since there is ample room within the expenditure restraint program, we are
requesting to increase the 2009 snow removal budget by the amount of the budget
shortfall, or $345,000.
Snow Removal
The 2009 snow removal budget exceeded the budget appropriation by $345,038, or
39.8% greater than the 2009 budget of $867,260. As shown in the table below, for
calendar year 2009 the City of Janesville had measurable snow fall of 45 inches. The
removal of this snow lead to six full plow events compared to a normal year of four. The
cost for snow removal and salt purchases in December 2009 was $429,057. During the
past three years, heavy December snow falls have pushed the snow removal cost to be
over budget requiring supplemental appropriations.
Comparison of Annual Snow Events and Expenditures
20052006200720082009
Total Inches of Snow42.928.268.3100.945
Snow Event Type (number of events)
Full Plow8413116
Partial Plow (arterials only)30242
Full Salt12226257
Partial Salt (arterials and/or hills only)733116
Downtown Snow Removal33843
Total No. of Events 3312525524
Expenditures
Original Budget$697,122$738,111$808,314$822,455$867,260
Actual 1,030,643 690,623 1,604,891 1,576,344 1,212,298
(Over) Under Budget ($333,521)$47,488($796,577)($753,889)($345,038)
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Supplemental Appropriation Memo
Resolution #2010-674
Fund Balance Analysis
Approval of the supplemental appropriation does not impact the fund balance at year-
end. Fund balance change is based upon the actual revenue and expenditures. The
General Fund preliminary 2009 operating results indicate another year of fund balance
decline. When the 2009 budget was adopted, the revenue budget was $40,411,684 and
the expenditure budget was $41,642,684, which left a balance of $1,231,000 to be
provided by use of fund balance. The preliminary 2009 budget results indicate favorable
results for both revenue and expenditures. Revenue will be approximately $215,000
over budget and expenditures will be roughly $470,000 under budget. However,
because the positive budget variances do not cover the $1,231,000 of applied fund
balance in the adopted budget, fund balance will decline approximately $546,000. We
projected at budget submittal that it would decline about $500,000.
General Fund
Changes in Fund Balance
Last Five Fiscal Years
20052006200720082009
Revenue$ 36,380,458$ 37,586,029$ 39,296,706$ 39,922,962$ 40,627,000
Expenditures 35,691,914 37,208,723 39,473,648 40,963,454 41,173,000
Net change in fund balance 688,544 377,306 (176,942) (1,040,492) (546,000)
Fund balance -beginning of year 7,925,827 8,614,371 8,991,677 8,814,735 7,774,243
Fund balance -end of year$ 8,614,371$ 8,991,677$ 8,814,735$ 7,774,243$ 7,228,243
With the approval of this supplemental appropriation, the 2009 General Fund
expenditure budget will increase by $345,000 to $41,987,684. The unexpended budget
appropriation will increase by the same amount to $815,000 and will be returned to the
General Fund’s Undesignated Fund Balance.
cc: Jacob J. Winzenz, Director of Administrative Services
Eric J. Levitt, City Manager
3
RESOLUTION NO. 2010-674
A RESOLUTION AUTHORIZING A 2009 GENERAL FUND SUPPLEMENTAL
APPROPRIATION
WHEREAS
, the City of Janesville experienced atypical weather conditions in 2009;
and
WHEREAS,
the weather conditions required an increase in the level of snowplowing
and snow removal efforts; and
WHEREAS
, the City’s 2009 budget for the purpose of snow plowing and snow
removal has been over expended; and
WHEREAS,
the Common Council find that it is in the best interest of the City to
provide supplemental funding for such snow removal; and
WHEREAS,
Council Policy Statement #58 requires the Council’s approval to amend
the current year’s budget to provide funding when the adopted program appropriation does
not contain sufficient funds; and
WHEREAS
, it is within the authority of the Common Council, pursuant to Section
65.90(5)(a), Wisconsin Statutes to authorize and direct such supplemental appropriations.
NOW, THEREFORE, BE IT RESOLVED,
by the Common Council of the City of
Janesville that all of the above recitals are incorporated herein by reference as if fully set
forth verbatim; that pursuant to Section 65.90 (5)(a) of the Wisconsin Statutes, the
Common Council of the City of Janesville hereby authorize and direct that a supplemental
appropriation in the amount of $345,000 be and hereby is made from the General Fund’s
Undesignated Fund Balance and placed into the now amended 2009 General Fund Snow
Removal budget account.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Administrative Services Department
Prepared by: Administrative Services Department