14. Mid-year budget adjustment
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408)777-3366
CITY F
CUPEIQINO
ADMINISTRATIVE SERVICES DEPARTMENT
SUMMARY
Agenda Item No. I L..(
Meeting Date: May 15, 2007
SUBJECT AND ISSUE
Approve the third mid-year budget adjustment for fiscal year 2006/07.
BACKGROUND
During the year staff reviews the budget and compares it to actual revenues and expenditures. As a
result of this review process, mid-year budget adjustments are brought back to the City Council to
adjust our original budget projections and reflect the current status of operating and capital project
accounts. This is the third and final midyear budget adjustment proposed for fiscal year 2006/07.
The General Fund is forecasted to end fiscal year 2006/07 with $ 4.035 million more in revenues
than the adopted budget, led by the passage of the Tax Equity Allocation legislation and sales tax
from our new business, Insight. In addition, almost all of our revenue categories are up over the
prior year. Transient Occupancy Tax has increased 15% over last year and interest income has
risen due to both increased portfolio balances and interest rates. In addition, construction tax,
charges for services and franchise fees continue to be strong as a reflection of the current economy.
The General Fund has increased appropriations by $2.146 million this year primarily due to the
funding of additional sheriff services, the Mary Avenue Bridge project and the loss of grant revenue
for the Steven's Creek Corridor project. To offset this increase however, staff is estimating that all
departments will end the fiscal year with operating savings in the amount of approximately $1.5
million. The two largest contributors are the departments oflaw enforcement and public works.
Accordingly, the Council is requested to authorize the following mid-year 2006/07 budget
adjustments to the General Fund:
Revenue Expenditure
General Fund:
Approved by Council on 11-6-06
Approved by Council on 12-6-06
Total to date
$1,780,000
240.000
$2,020,000
$375,000
1.365.000
$1,740,000
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Printed on Recycled Paper
Revenue Expenditure
New Requests for consideration:
Sales Tax - Insight agreement (1) 775,000
TOT Tax 140,000
Franchise Fees 300,000
Other Taxes 400,000
Charges for Services 250,000
Use of Money and Property 300,000
Sale of Property -150,000
Hsinchu Sister City program (3) 2,000
Beautification project 3-17-07 (2) 3,010
Transfers - Steven's Creek Corridor-
replace grant funding (4) 401,000
Total this request - General Fund $2.015.000 $406.010
Total 06/07 - General Fund $4.035.000 $2.146.010
Park Dedication Fund:
Approved by Council on 12-6-06 -500,000 -500,000
Park Dedication Fees - various projects 200,000 200,000
Total 06/07 - Park Dedication Fund -300.000 -300.000
Steven's Creek Corridor Project:
Grant Revenue (4) -401,000
Operating Transfer In from G/F (4) 40 1.000
Total 06/07 - Steven's Creek Fund !!
(1) Reflects projected sales tax sharing from Insight, Inc. for the period 1-1-07 to 6-30-07.
This revenue stream is to be reserved for park capital projects and is not to be used for
operations per staffreport from 12-6-06.
(2) Reimburse the City Manager contingency fund per Council direction.
(3) Provide funds for the delegation to attend the Commissioner's Dinner.
(4) Backfills lost grant allocation of $401,000 from DWR Urban Stream Restoration.
Monies were not spent within the time limit of the grant allocation.
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RECOMMENDATION
It is recommended that the City Council approve the third mid-year budget adjustment for fiscal
year 2006/07.
Submitted by:
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Carol A. Atwood
Director of Administrative Services
Approved for submission:
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David W. Knapp
City Manager
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