26. Year-end Budget Adjustments
ITY F
CUPElQ1NO
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City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
Fax: (408) 777-3366
DEPARTMENT OF ADMINISTRATIVE SERYICES
SUMMARY
Agenda Item No:;2,~
Meeting Date: December 6, 2005
SUBJECT AND ISSUE
Review and approve year-end budget adjustments for fiscal year 2004/05.
BACKGROUND
During the year staff reviews the budget, compares it to actual revenues and expenditures and
proposes final budget adjustments to more accurately reflect the status of operating and capital
project accounts. Our guidelines require that budget adjustments be approved by the City
Council.
To close out our fiscal year end, several budget adjustments were needed to reflect actual versus
projected activity in our funds. The first change is in our Enterprise Funds, to keep Senior
Center and Blackberry Farm in a positive fund balance position and to provide monies in the
Sports Center Fund for needed tennis court resurfacing. Second, in January of this year, Council
approved a $680,000 transfer from the Blackberry Farm (BF) Fund to the Stevens Creek
Corridor Fund to provide matching monies for the project grants. Our auditors would not permit
this transfer as adequate fund balance was not available and it would have put the fund in a
deficit position. With year-end close, we have realized enough money in the Recreation Fund to
accommodate this need. Third, operating transfers have been adjusted for both the Park
Dedication Fund to reflect actual revenues received and several other funds to close out actual
fund balances. The net effect of these changes to the General Fund will be $297,487. Due to a
very conservative fiscal approach this budget year (hiring freeze, maintenance deferral and early
State paybacks), the General Fund can absorb this adjustment without affecting reserves. Finally,
essential equipment purchases for the Public Information Office necessitated a budget transfer
from the Administration and Administrative Services Departments.
The following Operating Transfer (OT) adjustments and budget transfers are recommended by
staff to close out fiscal year 04105:
I. OT Out - Blackberry Farm to General Fund (GF)
2. OT Out - Sports Center to GF
3. OT Out - Senior Center to GF
4. OT Out - Recreation to GFI Stevens Creek Corridor
5. OT In - All Funds to the GF
6. OT In - Stevens Creek Corridor from all Funds
7. OT Out - Misc BBF capital projects to Steven's Creek Corridor
$-126,700
-100,000
-34,440
756,775
-297,487
720,885
40,885
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8. OT Out - Park Dedication to GF
9. OT Out - Leadership Cupertino to GF
10. OT Out - Sports Center CIP to GF
II. OT Out - Library CIP to GF
12. Transfer GF operating budget from Administration/Administrative Service
to Public Information
-76,950
-20,325
1,153
-17,000
20,394
With your approval, these adjustments will be incorporated into our financial statements and
final numbers available to the auditors. The audit report will be reviewed with the Audit
Committee in January, 2006 and presented to the City Council the second meeting of January.
RECOMMENDATION
Approve the year-end budget adjustments for fiscal year 2004/05.
Submitted by:
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Approved for submission:
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David W. Knapp
City Manager
Carol A. Atwood
Director of Administrative Services
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