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AI- 3595   8.    
City Council Agenda
Meeting Date: 04/09/2013  
Subject:    Budget Adjustment Ordinance
Presenter: Cliff Craig
Department: Finance Department  

Information
Recommended Action
Approve first reading of an ordinance amending the 2013 Budget.
Background
This ordinance provides adjustments to the 2013 Budget as authorized by RCW 35A.33.120. The amendments reflect changes that have occurred since City Council adoption of the 2013 Budget via Ordinance No. 3021. The budget amendments included in this ordinance essentially fall under four specific types, each clearly identified in the accompanying exhibits which detail the budget changes. Most of these adjustments have already been approved by prior Council action as part of total expenditures by fund. Changes that Council has not yet approved are indicated as "pending" in the approval date column in Exhibit B.
 
Categories by Type:
1. Changes previously approved by Council action. Nearly all necessary changes fall into this grouping. Typical examples are new revenues, new appropriations, and adjustments to actual based on better information. Approval date is indicated.
2. Capital project continuation. These changes move the unexpended portion of projects previously approved by Council into the current year.
3. Recommended adjustments. Some of these are technical adjustments made to reflect new or improved information or calculations. For example, corrections to the insurance fund charges reflect the correct object code to be charged and the corrected corresponding share for each department and fund. Another technical adjustment transfers $100,000 from the General Fund to the Wastewater fund to pay down the Civic Center interfund loan as described in the 2013 budget. This payment is expected to come from savings in other line items. Other recommended adjustments include the allocation of available LIFT Grant taxes as a revenue source to fund eligible projects which have been identified since the budget was adopted. The projects include railroad crossings, 3rd Street SW infrastructure improvements, the 39th Avenue SE asphalt overlay in conjunction with an STP grant, and SR 161 safety improvements (Adaptive Traffic System) matching a state grant.
4. "No effect" items (i.e., no change in appropriations). The major "no effect" entries in this ordinance include project transfers. Project transfers move budget from projects where it is not currently needed to where the need is greater. Other entries are intrafund transfers used to move resources to specific projects. Both types of transfers are fully contained within the same fund--for example, ___________________________. These adjustments are included for transparency. There are no staffing adjustments included in this ordinance.
Previous Actions (Discussions/Presentations)
The 2013 Budget was adopted by ordinance 3021 on November 27, 2012. The last budget adjustment ordinance was No. 3025 which amended the 2012 budget, passed December 4, 2012. At that time, Council directed moving to a quarterly process; this ordinance is the first quarterly ordinance according to that direction.
Summary of Proposal
This ordinance formally amends the 2013 budget consistent with prior Council direction. The few items that have not already been approved by Council are consistent with prior direction and are presented for your approval at this time. One such change adjusts transfers available funds out of the Real Estate Excise Tax funds to pay down an interfund loan by $400,000. That would leave a balance of $350,000 owed by Real Estate Excise Tax - First Quarter Percent fund due at the end of 2014.
Alternatives/Options
Any amendments to the budget made during the year may be adopted by a series of budget amendment ordinances. The best management practice--and preferred approach by the State auditor--is to have all adjustments adopted by ordinance by year-end.

Fiscal Impact
Attachments
Draft ordinance
Exhibit A
Exhibit B

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