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REQUEST FOR COUNCIL ACTION Date: 4l26/2004 Item No: 5. Department Approval: Manager Approved: Agenda Section: �''�` '"�' ��'`� ~ j�,(,� �(�?�� j Staff Reports Item Description: Consider Necessary Amendments to the 2003 Budget 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, 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 adjustrnents 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 bv unbudgeted grants, fees, or other revenues. Budget Amendments The following budget amendment to the 2003 Community Development Fund budget is submitted for consideration: a) $60,000 additional appropriation for salaries. Community Development Departrnent Staff also provide services to the Roseville HRA. The proportionate share of salary for the HRA was charged within the Community Development Fund, but was not reflected in the origina12003 budget. The additional salary expense was covered by HRA funds. b) $50,000 additional appropriation for Other Services and Charges. This represents pass- through monies from the Met Council and was offset by a Livable Communities grant received earlier in the fiscal year.