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REQUEST FOR COUNCIL ACTION Date: 5/12/2003 Item o= v111.13. Department Approval: Manager Approved: Agenda Section: Item Description: Amending the 2002 Budget Deports & recommendations Background The City annually adopts budgets on the basis set forth by State Statute, and generally accepted accounting principles. Although the City adopts a single all - encompassing budget, additional measures are necessary to show that all expenditures within the General Fund and certain Special Purpose Funds are within budget appropriations, when presented in the Financial statements. The legal level of budgetary control (i.e. the level at which expenditures may not legally exceed appropriations) has been established at the fund level, not line -item or individual programs. It is recognized that the City's Department Heads, under the approval of the City Manager, may make transfers of appropriations within the department. However, if the expenditures exceed the total fund budget, a budget amendment must be shown. It's worth noting, that these types of year -end adjustments are typical for local governments like Roseville given the size and scope of operations. Rather than make numerous budget adjustments throughout the year and incur the significant administrative costs of monitoring the budget on a daily basis, it has become customary to reflect the changes in one all- encompassing adjustment. The year -end budget adjustments typically reflect reallocated or additional costs that are covered by unbudgeted grants, fees, or other revenues. Budget Amendments The following budget amendment to the 2002 Recreation Fund Budget is to be considered: a) $38,982 transfer from the general Fund to the recreation Fund. The 2002 cost -of- living adjustment was budgeted in the General Fund for all city employees, rather than in the individual funds. The amount shown here is the recreation Funds portion of these Momes. b) $38,982 additional appropriation for salaries. This was the amount needed to offset the 2002 cost -of- living adjustment for recreation employees, and was prodded for with the General Fund transfer noted above. c) $8,018 additional appropriation for salaries. This amount is needed to offset higher-than- expected part -tine /seasonal wages in the Skating Center. The additional appropriation will come from reserves.