#3 Authorize a 2010 General Fund supplemental appropriation (File Res. #2011-772)
ADMINISTRATIVE SERVICES MEMORANDUM
February 7, 2011
TO: City Council
FROM: Patty Lynch, Comptroller
Rebecca Smith, Management Assistant
SUBJECT: Action on a Proposed Resolution Authorizing a 2010 General Fund
Supplemental Appropriation (File Resolution #2011-772)
Summary
The 2010 General Fund budget results indicate that council action is necessary to
provide a budget amendment for funding of Leisure Services. The Leisure Services
group of budgets has exceeded its budget appropriation due primarily to equipment
operation/maintenance, recreation partnerships, and Ice Skating Center consultant
expenses. Council action is required to provide a supplemental appropriation in
accordance with Council Policy Statement 58.
Department Recommendation
Staff recommends Council adopt Resolution #2011-772 authorizing supplemental
appropriation for the Leisure Services budgets.
Suggested Motion
Move to adopt File Resolution #2011-772.
City Manager Recommendation
Overall I believe the 2010 year end results are positive. The City was able to increase
funding into the fund balance of the General Fund. Major factors in this include
unanticipated one-time revenues, changes in our budgeting of areas such as snow
plowing and positive budget controls in public safety. Leisure Services was over
budget, but the factors that led to this are able to be reversed with different
management strategies and due to some of the expenses being one-time costs.
The City Manager recommends approval.
Budget Results
The preliminary 2010 General Fund operating results indicate that actual expenditures
are $515,093, or 1.2% under the amount appropriated. However, the Leisure Services
budget group is $45,154 or 1.6% over budget.
Amount
Percentage
Unexpended
Unexpended
(Overexpended)
General Government
$237,065 7.0%
Public Safety
(including Police and Fire)
264,638 1.2%
Public Works
(including Public Works Administration,
Engineering, Street Maintenance & Repairs, Public
7,172 0.1%
Buildings and Parking Facilities, Traffic Management,
Transit Subsidy)
Leisure Services
(including Leisure Services
Administration, Senior Citizens Center, Aquatics, Youth
(45,154) -1.6%
and Adult Recreation, Parks, and Ice Skating Center)
Community Development (including Economic
Development, Community Development and Property
17,989 1.2%
Maintenance)
Other
(including Economic Adjustments, Employee
Fringe Benefits and Insurance, Contingency Account,
29,188 3.1%
and Special Assessments Transfer)
General City Debt Service
4,195 0.1%
TOTAL
$515,093 1.2%
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
Leisure Services program is over budget in 2010, 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 2010 General Fund
operating budget, as originally adopted, was $2,039,862 under the expenditure restraint
limit. Since there is ample room within the expenditure restraint program, we are
requesting to increase the 2010 Leisure Services budgets by $50,000.
Leisure Services
The 2010 Leisure Services budgets exceeded the budget appropriation by $45,154, or
1.6% greater than the 2010 budget of $2,873,042. Staff has performed analysis to
determine the reasons for the over expenditures.
For Parks, the overages are primarily related to equipment rental costs for work on a
few unplanned special projects and for equipment rental costs to respond to unsafe tree
situations. Projects include relocating a hiking trail that was found to be incorrectly on
private property; dog run clearing at Palmer Park; building retaining walls at Riverside &
Lustig Parks; and rubber surface repairs at Rockport Park. Tree situations include
removing trees at the arboretum that were scraping school buses and the need for
immediate removal of three large, hazardous trees within the park system.
For Recreation, the overages are primarily related to the ice skating center consulting
fees, equipment repairs, and recreation partnerships. At the February 22, 2010 meeting,
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the Council chose to approve up to $10,000 to evaluate the City’s current facility and the
feasibility of a new facility. The actual cost for the consultant was about $6,475. The
Division also had to repair the compressors for the ice making system ($5,500) and
purchase a floor scrubber for maintenance of the center ($3,900). Recreation
Partnerships was also over expended by $9,658 due to Midwest Adventure Group
rental equipment purchases for Summer activities at Lions Beach and Traxler Park.
In both parks and recreation, funding for salaries and hourly wages, including overtime,
were within budget.
Fund Balance Analysis
The preliminary 2010 budget reports indicate favorable results for both revenues and
expenditures. Instead of a drawdown of fund balance of $850,000 as budgeted, the
2010 fund balance will increase by approximately $262,000.
Revenues are approximately $597,000 over budget (1.5%). The Transfers In revenue
account is approximately $388,000 over budget due to the closure of certain Special
Revenue accounts. All other revenues combine for a net revenue over-realization of
$209,000.
Expenditures are roughly $515,000 under budget (1.2%), primarily due to the General
Government and Police expenditures under the budgeted amount.
Approval of the supplemental appropriation does not impact the fund balance at year-
end. Fund balance change is based upon the actual revenue and expenditures, as
shown in the table below.
General Fund
Changes in Fund Balance
Last Five Fiscal Years
20062007200820092010
Revenue$ 37,586,029$ 39,296,706$ 39,922,962$ 40,642,421$ 41,165,350
Expenditures 37,208,723 39,473,648 40,963,454 41,186,393 40,902,906
Net change in fund balance 377,306 (176,942) (1,040,492) (543,972) 262,444
Fund balance -beginning of year 8,614,371 8,991,677 8,814,735 7,774,243 7,230,271
Fund balance -end of year$ 8,991,677$ 8,814,735$ 7,774,243$ 7,230,271$ 7,492,715
With the approval of this supplemental appropriation, the 2010 General Fund
expenditure budget will increase by $50,000 to $41,467,999.
cc: Jacob J. Winzenz, Director of Administrative Services
Eric J. Levitt, City Manager
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RESOLUTION NO. 2011-772
A RESOLUTION AUTHORIZING A 2010 GENERAL FUND SUPPLEMENTAL
APPROPRIATION
WHEREAS
, the City’s 2010 budget for the purpose of Leisure Services has been
over expended primarily in areas of vehicle/equipment operation/maintenance, Ice Skating
Center consultant expenses, and Recreation Partnerships; and
WHEREAS,
the Common Council finds that it is in the best interest of the City to
provide supplemental funding for such activities; 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 $50,000 be and hereby is made from the General Fund’s
Undesignated Fund Balance and placed into the amended 2010 Leisure Services budget
accounts.
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 Wald Klimczyk
Proposed by: Administrative Services Department
Prepared by: Comptroller & Management Asst.