Title
Resolution to Amend Ann Arbor City Budget for Fiscal Year 2011 (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to amend the Ann Arbor City Budget for Fiscal Year 2011.
The Michigan Public Act 621 of 1978, as amended, provides that the City shall not incur expenditures in excess of the amounts appropriated. In order to comply with PA 621, the City’s auditors, Abraham & Gaffney, P.C., have suggested the City monitor expenditures against the adopted budget on a periodic basis and appropriate budget amendments be adopted by Council as needed.
Management of the City has monitored the revenue and expenditure activity against the adopted budget for the various funds throughout the year. In addition, management has attempted to periodically forecast the remainder of the fiscal year’s revenue and expenditures.
In monitoring the various funds, management has forecasted certain variances versus budget that require budget amendments to remain in compliance with PA 621 as indicated above. These variances and the reasons for the variances are listed on the attachment.
The Government Accounting Standards Board adopted Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which changes the definition of what funds qualify as special revenue funds effective July 1, 2010. The Economic Development Fund was adopted in the FY 2011 budget as a special revenue fund and no longer fits the definition of a special revenue fund and therefore, must be blended with the General Fund.
The result of this blending is the Economic Development Fund’s fund balance of $967,161.00 must be moved into the General Fund; and the expenditures previously budgeted within the Economic Development Fund, now become expenditures of the General Fund.
The total requested General Fund budget amendment is $1,127,590.00; of which $750,000.00 is attributable to the transfer of the Economic Development Fund’s budget into the Gene...
Click here for full text