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HomeMy WebLinkAbout05. 19-617 DECEMBER 10, 2019 19-617 RESOLUTION (CARRIED____7-0____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE AMENDMENT TO 2019 GENERAL FUND BUDGET FOR EXPENDITURE RESTRAINT PROGRAM TO ADJUST BASE BUDGET TO MAXIMUM AMOUNT OF 3.2% ($46,000.00) INITIATED BY: FINANCE DEPARTMENT WHEREAS, the Common Council has adopted the 2019 General Fund Budget, which is on file in the Office of the City Clerk and available for public inspection; and WHEREAS, it is necessary to amend the 2019 General Fund Budget to provide for the percentage increase of expenditures subject to the Expenditure Restraint Program in order to position the City in the most favorable position for the 2020 Expenditure Restraint Program. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the 2019 General Fund Budget, on file in the City Clerk's Office, is hereby amended with adjustments as listed in the attached Expenditure Restraint Budget Worksheet. TO: Honorable Mayor and Members of the Common Council FROM: Russ Van Gompel, Director of Finance DATE: December 2, 2019 RE: Amendment to 2019 General Fund Operations Budget BACKGROUND When the City Council approved the 2019 Operations Budget in November of 2018, the percentage increase of expenditures subject to the Expenditure Restraint Program (ERP) was at 3.12%. The 2019 allowable increase in expenditures to qualify for the ERP is 3.2%. After making various budget amendments in 2019, the City has $46,970 to reach the maximum amount of budgetary increase in 2019 (Please see the attached worksheet). ANALYSIS To position the City in the most favorable position for the 2020 Expenditure Restraint Program, it is best to adjust the base year budget (2019) to the maximum amount. To adjust the base year budget (2019), it is recommended that the Contingency Account, 0100-0914-6461, be increased by $46,000. This is a one-sided entry and would place the General Fund in a position where the Budget is not in balance or in theory using $46,000 from Fund Balance. FISCAL IMPACT There is no anticipated financial impact from the approval of the resolution since it will be a budgetary entry only. It is anticipated that no additional expenditures will occur. RECOMMENDATION Staff recommends that Council approve this resolution. Respectfully Submitted, Russ Van Gompel Finance Director Approved: Mark A. Rohloff City Manager Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1 130 920.236.5005 http://www.ci.oshkosh.wi.us City of Oshkosh Expenditure Restraint Budget Worksheet Revisions as Directed By DOR 2019 2019 Original Amended Total General Fund Budget Expenditures $ 46,662,400 $ 46,658,060 Tax levy Special Revenue Funds: Garbage Collect & Disposal 1,332,100 1,332,100 Street Lighting 1,052,000 1,052,000 Senior Services 321,100 321,100 GO Transit Utility 786,600 786,600 Library 2,700,300 2,700,300 Museum 979,600 979,600 Grand Opera House 2,000 2,000 Cemetary 304,600 304,600 Equipment Fund 1,000,000 1,000,000 Leach Amphitheater 14,000 14,000 Pollock Community Water Park 64,000 64,000 Debt Service - Levy 11,617,200 11,617,200 Agency Funds /Safety & Workers Compensation - - Total Expenditures 66,835,900 66,831,560 Less: Long Term Debt Princ & Interest (Levy) (11,617,200) (11,617,200) Less: General Fund Expenditures for contracted services provided to another local government - 55,218,700 55,214,360 Increase (Decrease) 1,670,900 1,666,560 % change 3.1207% 3.1126% Allowable Change 3.20% 3.20% Maximum Increse Difference UPDATED 10.31.19 $ 55,261,330 $ 46,970 I:\Finance\_Admin\Budget\2020 BUDGET\2020 Budget Spreadsheets\Expenditure Restraint Budget Worksheet - Oshkosh 10.7.17.xlsx