TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Transfer of fiscal year (FY) 2025 budget appropriations in the General Fund, City Services Fund, Community Renewal Fund, and Airport Fund
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Natural Environment Stewardship; Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
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SUMMARY:
summary
Several year end budget authority transfers are needed to maintain compliance with Oregon budget law. Transfer of budget appropriation is required when actual spending is anticipated to exceed budget authority.
end
ISSUE:
Shall City Council adopt Resolution No. 2025-15 authorizing a transfer of appropriations within the City’s FY 2025 budget?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2025-15 authorizing a transfer of appropriations within the City’s FY 2025 budget.
body
FACTS AND FINDINGS:
General Fund and City Services Fund, Fleet Division
FROM: General Fund, Non Departmental, Contingency, 101-60961000-61110, $350,000
TO: General Fund, Non Departmental, Interfund Transfers, 101-60961000-62110, $350,000
ADD: City Services Fund, Fleet Services, Interfund Transfers General Fund, 355-20305000-39105, $350,000
ADD: City Services Fund, Fleet Services, Vehicle Maintenance, 355-20305000-53310, $350,000
The Fleet Services division of the City Services Fund has continued to experience high utilization of their services. Also, contracted increases to employee wages were not known in time to include in the FY 2025 budget. To remain in budget compliance, a transfer to increase budget authority is required. No actual cash transfer will occur.
General Fund and City Services Fund, IT Telecom Division
FROM: General Fund, Non Departmental, Contingency, 101-60961000-61110, $40,000
TO: General Fund, Non Departmental, Interfund Transfers, 101-60961000-62110, $40,000
ADD: City Services Fund, IT Telecom, Interfund Transfers General Fund, 355-59170000-39105, $40,000
ADD: City Services Fund, IT Telecom, Controlled Equipment, 355-59170000-52815, $40,000
The IT Telecom division of the City Services Fund experienced higher than anticipated costs than were contemplated during budget development. During the year, the need arose for replacement of two servers. Because of this, IT Telecom requires an increase of budget authority to remain within budget compliance. No actual cash transfer will occur.
General Fund and Community Renewal Fund
FROM: General Fund, Non Departmental, Contingency, 101-60961000-61110, $289,080
TO: General Fund, Non Departmental, Interfund Transfers, 101-60961000-62110, $289,080
ADD: Community Renewal Fund, HOME, Interfund Transfers General Fund, 165-64205000-39105, $289,080
ADD: Community Renewal Fund, HOME, Other Special Payments, 165-64205000-54850, $289,080
For many years, the City has awarded some of the federal HOME grant in the Community Renewal Fund as a pass through to community partners to run the Tenant Based Rental Assistance (TBRA) program for individual clients. In recent years, an independent file review was conducted of the partner’s use of funding, and it was found that $289,075 of federal dollars were not spent in compliance with grant requirements. Due to the noncompliance, a repayment to the US Department of Housing and Urban Development needs to occur before June 30, 2025, and this budget action makes cash available for the repayment.
Airport Fund
FROM: Airport, Continency, 160-64131500-61110, $150,000
TO: Airport, Salaries & Wages, 160-64131500-51010, $50,000
TO: Airport, Other Special Payments, 160-64131500-54850, $100,000
Since contracted increases to employee wages were not known in time to incorporate into the FY 2025 budget and more expense than expected will occur to fulfill the minimum revenue guarantee for commercial air service, the Airport Fund requires additional budget authority through a contingency transfer within the Airport Fund to remain in budget compliance.
Interfund Transfer Revenue Reconciliation
FROM: General Fund, Non Departmental, Bad Debt Recovery, 101-60961000-36810, $320
TO: General Fund, Non Departmental, Interfund Transfers, 101-60961000-39110, $320
FROM: Capital Improvements Fund, Streets Non-Assessed Construction, Other Government Agencies, 255-58901010-35395, $140
TO: Capital Improvements Fund, Streets Non-Assessed Construction, Interfund Transfers Bikeway, 255-58901010-39107, $140
FROM: Capital Improvements Fund, Stormwater Non-Assessed Construction, Interfund Transfer Rates, 255-58903005-39102, $100,000
TO: Capital Improvements Fund, Stormwater Non-Assessed Construction, Other Government Agencies, 255-58903005-35395, $100,000
FROM: Capital Improvements Fund, Water Non-Assessed Construction, Interfund Transfer Rates, 255-58902010-39102, $74,160
TO: Capital Improvements Fund, Water Non-Assessed Construction, Other Government Agencies, 255-58902010-35395, $74,160
FROM: Capital Improvements Fund, Parking Structure Improvements, Interfund Transfers, 255-64901200-39110, $7,010
TO: Capital Improvements Fund, Parking Structure Improvements, Interest, 255-64901200-36210, $7,010
Recently the State of Oregon informed the City that budgeted transfer revenue must equal budgeted transfer expense to remain in compliance with Oregon budget law. The above actions reconcile the transfer revenue authority with the transfer expenditure authority in the General Fund and Capital Improvements Fund.
BACKGROUND:
State law allows local governments to approve transfers of appropriations within the limits established by the adopted budget to address unanticipated changes.
Kali Leinenbach
Budget Manager
Attachments:
1. Resolution No. 2025-15