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k" REQUEST FOR COUNCIL ACTION Item Description: Approve Amendments to the 2 010 Budget Date: 03/28/11 Item No. 7. d City Manager Approval 11 BACKGROUND 2 The City annually adopts budgets on the basis set forth by State Statute, and generally accepted accounting 3 principles. Although the City adopts a single all-encompas sing budget, additional measures are necessary 4, to show that all expenditures within the General Fund and certain Special Purpose Funds are within budget 5 appropriations, when presented in the annual financial statements. 6 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 as opposed to 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 is customary to reflect the changes in one all-encompassing adjustment. The year-end budget adjustments typically reflect reallocated or additional costs that are offset by unbudgeted grants, fees, or other revenues. The following budget amendment to the 20 10 General Fund budget is submitted for consideration: 1) $ 177,000 in police equipment purchases funded by forfeiture funds. 2) $ 15,000 in Police overtime detail that was offset by federal and state monies for special enforcement details. 3) $91,000 in Public Works engineering consulting services provided to the City of Arden Hills. The additional costs were reimbursed by the City of Arden Hills. Page I of 2