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Rls�kspvlffi� REQUEST FOR COUNCIL ACTION Department Approval x ,nt4 Item Description: Approve Amendments to the 2007 Budget Date: 4/14/08 Item No.: 7.e City Manager Approval 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 annual 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, 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 2007 General Fund budget is submitted for consideration: 1) $ 350, 000 in Public Safety expenditures which included; $ 2 50, 000 in purchases of federally - funded SCBA's for the Fire Department, $45,000 in Police overtime (offset by personnel vacancies) and $05,000 in Police department purchases paid for out of donations and/or forfeiture funds. 2) $150,000 in Public works expenditures which included; $50,000 in additional motor fuel and street maintenance materials, and $100,000 in engineering consulting services provided to the Cities of Arden Hills and Falcon Heights. Consulting services costs were offset by added fees. The following budget amendment to the 2007 Recreation Fund budget is submitted for consideration: 1) $35,000 for additional salaries expense. while the 2007 Budget included a cost of living adjustment and expected pay plan step increases, the Fund realized higher - than - expected healthcare premium costs and merit pay plan increases. Page 1 of 3