Title
Resolution to Amend Ann Arbor City Budget for Fiscal Year 2013 (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to amend the Ann Arbor City Budget for Fiscal Year 2013.
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, Rehmann, 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 total requested General Fund budget amendment is $567,000.00. The budget amendment for all other funds totals $403,280.00. A detail of the requested appropriations is attached.
Passage of this Resolution and approval of the fiscal year 2013 budget amendments as prepared is recommended.
Staff
Prepared by: Kenneth J. Bogan, Senior Finance Specialist
Reviewed by: Tom Crawford, CFO/Financial Services Area Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, On May 21, 2012, City Council adopted the annual operating budget for FY 2013 for the City of Ann Arbor;
Whereas, The Michigan Public Act 621 of 1978, as amended, provides that the City shall not incur expenditures in excess of the amounts appropriated;
Whereas, The City's management have monitored revenues and expenditures and have forecasted revenues and expenditures against the adopted budget;
Whereas, The forecasted expenditures are in excess of the City's adopted budget for some units in the General Fund, and certain other funds in total as listed below;
Whereas, The recommended appropriation will require the use of General Fund Balance;
Whereas, The FY 2013 Budget Resolution authorized the City Administrator to transfer funds between services units within the designated service areas; and
Whereas, There exists an unused contingency in General Fund Non-departmental for $206,000.00;
RESOLVED, That Council amend the General Fund expenditure budgets by $567,000.00 for the FY 2013 as indicated below, funded with a use of fund balance:
GENERAL FUND EXPENDITURES
CITY ADMINISTRATOR
City Administrator $12,000.00
Clerk Services 15,000.00
COMMUNITY SERVICES
Planning & Development 34,000.00
Parks & Recreation 234,000.00
FINANCIAL SERVICES 37,500.00
NON-DEPARTMENTAL -206,000.00
FIFTEENTH DISTRICT COURT 440,500.00
TOTAL GENERAL FUND EXPENDITURES $567,000.00
RESOLVED, That the following other funds' expenditure budgets for FY 2013 be amended as follows, and that the source of funding for these expenditures be use of prior years fund balance:
EXPENDITURES
Fund Fund Name Amount
0046 FARMERS MARKET FUND $ 28,280.00
0072 SOLID WASTE FUND 375,000.00
TOTAL NON-GENERAL FUNDS EXPENDITURES $403,280.00
SEE ATTACHMENT