Title
Resolution to Amend Ann Arbor City Budget for Fiscal Year 2012 (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to amend the Ann Arbor City Budget for Fiscal Year 2012.
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 have suggested the City monitor expenditures against the adopted budget on a periodic basis and appropriate budget amendments be adopted by Council as needed.
In monitoring the various funds, management has forecasted certain variances versus budget that require budget amendments to remain in compliance with PA 621. These variances and the reasons for the variances are listed on the attachment. This amendment is necessary because Council adopts the General Fund budget by Service Area so favorable variances in one Service Area may not offset unfavorable variances in another from a budgeting perspective.
The FY2012 General Fund expenditure budget is $79,642,485. The requested General Fund amendment is $1,351,461, which will result in an amended budget of $80,993,946. Despite this increase in budgeted expenditures, staff forecasts that the General fund will end the year with a net use of fund balance of less than ½ million dollars in FY 2012 due to other positive offsetting items.
For all funds outside of the General Fund, the requested budget amendment totals $2,836,100, which is primarily driven by refinancing a bond at a lower interest rate. The detail of the requested appropriations is attached.
Staff
Prepared by: Kenneth J. Bogan, Senior Finance Specialist
Reviewed by: Tom Crawford, CFO
Approved by: Steven D. Powers, City Administrator
Body
Whereas, On May 21, 2011, City Council adopted the annual operating budget for FY 2012 for the City of Ann Arbor;
Whereas, The Michigan Public Act 621 of 1978, as amended, provides that the City shal...
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