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Department Approval: �� REQUEST FOR COUNCIL ACTION Manager Approved: � � �� :�� . �� -:�� r Item Description: Consider Necessary Amendments to the 2005 Budget Date: 4/24/2006 Item No: 3.f Agenda Section: c �tti:��:,; 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.P. the level at which expenditures m: �- 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 Llti�� are covered bv unbudgeted �rants, fees, or other revenues. Budget Amendments The following budget amendment to the 2005 License Center Fund budget is submitted for consideration: a) $92,000 additional appropriation for salaries and renovation costs. The volume of customers served at the License Center was higher than expected. This was primarily due to increased volume in auto dealer licensing and the issuance of passports, which required additional part-time staffing hours. In addition, a renovation of the License Center was made to accommodate growth. The additional expenditures were covered by added revenues, which were approximately $177,000 higher than expected.