SUBJECT: ADOPTION OF AMENDMENTS TO THE ANNUAL APPROPRIATION ORDINANCE AND FUNDING SOURCES RESOLUTION FOR VARIOUS OPERATING FUNDS TO REFLECT ESTIMATED 2000-2001 REVENUE RECEIPTS, EXPENSES AND ENCUMBRANCES

Council District: City-Wide

RECOMMENDATION

It is recommended that the City Council approve Appropriation Ordinance and Funding Sources Resolution amendments in various funds as detailed in Attachment A of this memorandum.

BACKGROUND

Over the course of the last several weeks, the Budget Office has conducted a final detailed review of existing appropriations and revenue estimates as compared to year-end projected levels. This review was performed utilizing financial reports identifying expenditures, encumbrances and revenues through May, 2001.

This report is prepared as a result of that review. Included are recommendations for expenditure and revenue adjustment actions to provide for:

• adjustments to the Appropriation Ordinance and Funding Sources Resolution to address a number of technical problems identified during recent months;

• adjustments to the Appropriation Ordinance and Funding Sources Resolution needed to assure adequate funding in various departments through the end of the fiscal year and to bring revenue estimates in line with the latest information.

As in the past, an effort has been made to provide for adjustments in those cases where it appears there is a possibility that appropriations would be exceeded by year end. These actions are intended to be responsive to Council direction to discontinue the practice of after-the-fact ratifications of overexpenditures, except in emergency situations. In the action establishing that policy, the City Council directed staff to provide a year-end report and recommended clean-up actions necessary to avoid ratifications.

Included in addition to a narrative discussion of the proposed actions, is an attachment that summarizes the proposed adjustments to the General Fund and various Special Funds.

ANALYSIS

Total changes recommended to General Fund appropriations are as follows:

General Fund

Most of the proposed revisions to the General Fund can be described as falling into four primary groupings:

• General Fund Ending Fund Balance

In order to bring the General Fund Ending Fund Balance in line with the 2001-2002 Proposed Operating Budget, adjustments to operating revenues are recommended. These adjustments total $13.0 million and are in addition to the $17.0 million that was previously set aside at Mid-Year.

• Net Zero Movements Between Appropriation Categories

The largest number of proposed net-zero adjustments involve situations where total departmental level appropriations will not be exceeded by year-end, but adjustments between expenditure categories within a department are required to prevent an overexpenditure of an appropriation category.

• Net Zero Movements Within Appropriation Category

Technical adjustments for several departments have been recommended to reallocate personal services savings to offset projected shortfalls within their overtime line item. Because of the number of vacancies being experienced by departments and work necessary for high-profile projects, departments have expended funds greater than budgeted levels. Savings within each department’s personal services appropriations can offset all of these expenditures.

• Adjustments Requiring Additional/New Funding

Additional funding is recommended to reflect the receipt of additional revenues in the following departments: Parks, Recreation and Neighborhood Services, Fire, Public Works, Library, Conventions, Arts and Entertainment, and Planning, Building and Code Enforcement. There are two departments (Independent Police Auditor and Conventions, Arts and Entertainment) requiring additional funding to offset potential overexpenditures. The situations resulting in the required adjustments have been described in the Administration's Monthly Financial Reports. In addition, there are two new City-Wide appropriations to fund obligations approved by prior Council action (Silicon Valley Football Classic and Executive Recruitment Loans). Reductions to appropriations (Police Personal Services and Class/Comp Study) that are experiencing savings can be taken are recommended to be reduced to offset these potential overexpenditures.

Special Funds

The proposed appropriation revisions recommended for the various Special Funds can also be described in three primary categories:

• Appropriation Transfers to Prevent Potential Overexpenditures

Revisions are proposed in a number of funds to correct situations in which it appears that the current appropriation may be insufficient to support required expenditures. The specific reasons for each of the proposed actions are discussed in detail in Attachment A. In each instance, funding is available within the involved fund to offset the required adjustment.

• Net Zero Movements Within Appropriation Category

As in the General Fund, technical adjustments for several departments in a number of Special Funds have been recommended to reallocate personal services savings to offset projected shortfalls within their overtime line item. Because of the number of vacancies being experienced by departments, departments have expended funds greater than budgeted levels. Savings within each department’s personal services appropriations can offset all of these expenditures.

• Interfund Transfers and New Revenues

Revisions are proposed to several funds in order to recognize transfers among funds required to comply with operating agreements and to comply with operating agreements, properly reflect required accounting treatment of various financial transactions and additional operating revenues.

LARRY D. LISENBEE

Budget Director

I hereby certify that there will be available for appropriation in the amounts as listed in the fiscal year 2000-2001 monies in excess of those heretofore appropriated therefrom:

General Fund $20,406,456

Convention & Cultural Affairs Fund 300,000

Airport Cust Service & Trans Fee Fund 631,854

Airport Revenue Fund 3,922,995

Airport Surplus Revenue Fund 3,700,000

State Drug Forfeiture Fund 20,000

Maint Dist #1 Los Paseos Fund 2,700

Workforce Investment Act Fund 3,702,349

Emergency Reserve Fund 913,875

1943 Gas Tax Fund 300,000

1990 Gas Tax Fund 200,000

Life Insurance Fund 30,000

Benefit Fund 470,000

LARRY D. LISENBEE

Budget Director

GENERAL FUND

1. Council Offices

• Increase Council District 7’s appropriation by $2,250.

• Decrease Council General appropriation by $2,250.

A reallocation of resources between Council District 7 and Council General of $2,250 is recommended to reflect the appointment of Council Member Shirakawa Jr as Vice-Mayor in January and the additional funding that complements the office.

2. Office of the City Attorney

• Decrease the Office of the City Attorney’s Personal Services appropriation by $330,000.

• Increase the Office of the City Attorney’s Non-Personal appropriation by $330,000.

An increase of $330,000 to the non-personal appropriation to provide the funding necessary to address higher than anticipated expenditures for consultants, including employee relations consultants, subject area experts, legal support services, and equipment is recommended. Sufficient savings are available from the City Attorney’s personal services appropriation.

3. Office of the City Manager

• Decrease the Office of the City Manager’s Personal Services appropriation by $500,000.

• Increase the Office of the City Manager’s Non-Personal appropriation by $500,000.

An increase of $500,000 to the non-personal appropriation to provide the funding necessary for executive search contracts recently approved by Council, upgraded equipment for Civic Center Television, and computer equipment is recommended. Sufficient savings are available from the City Manager’s personal services appropriation.

4. Office of the Independent Police Auditor

• Increase the Office of the Independent Police Auditor’s Personal Services appropriation by $30,000.

An increase of $30,000 to the personal services appropriation is recommended cover the cost of staff salary increases that occurred during 2000-2001. Expenditure savings in the Police Department and Class/Comp Study City-wide appropriations are recommended to be used to offset the costs.

5. Conventions, Arts & Entertainment Department

• Increase the Conventions, Arts and Entertainment Department's Personal Services appropriation by $32,852.

• Increase the Conventions, Arts and Entertainment Department's Non-Personal appropriation by $150,000.

Modifications to the Conventions, Arts and Entertainment Department's appropriations are recommended to provide sufficient funding as described below:

Salary Program: An increase of $32,852 to the personal services appropriation is recommended to cover costs incurred for recently negotiated salary increases for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the General Fund Earmarked Salary Reserve to the Conventions, Arts and Entertainment Department for these employees.

Water Usage: An increase of $150,000 to the non-personal appropriation is recommended to address the higher than budgeted usage of water costs. A portion of the costs ($75,000) can be offset by additional unbudgeted revenues in departmental charges. Expenditure savings in the Police Department and Class/Comp Study City-wide appropriations are recommended to be used to offset the remainder of the costs.

Overtime Adjustment: An increase of $140,000 to overtime is recommended to address the higher than budgeted overtime usage. Due to the higher than budgeted level of vacancies within the department and increased overtime usage related to maintenance of regional parks training, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

6. Environmental Services Department

An increase of $6,000 to overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

7. Finance Department

• Decrease the Finance Department’s Personal Services appropriation by $265,500.

• Increase the Finance Department’s Non-Personal Services appropriation by $15,500.

Modifications to the Finance Department's appropriations are recommended to provide sufficient funding as described below:

Payroll/Human Resources Project: Due to the high number of departmental vacancies, including the Director position for a portion of the fiscal year, there are personal services savings well beyond the budgeted level. Those savings ($250,000) are recommended to be transferred to help support the Payroll/Human Resources Project City-Wide account).

Temporary Support: An increase of $15,500 to the non-personal appropriation is recommended to provide for expenses incurred for temporary personnel in the Treasury program. These temporary positions, which have been charged to the non-personal appropriation, were back-filling permanent positions funded in the personal services appropriation. As a result, it is necessary to transfer funding from personal services to non-personal to reflect the actual expenditure pattern.

Overtime Adjustment: An increase of $31,000 to overtime is recommended to address the higher than budgeted use of overtime. Due to the number of vacancies within the Department, in particular within the Accounting Program, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime is recommended.

8. Fire Department

• Increase the Fire Department's Personal Services appropriation by $5,588,540.

• Increase the Fire Department's Non-Personal appropriation by $115,000.

Modifications to the Fire Department appropriations are recommended to provide sufficient funding as described below:

Salary Program: An increase of $5,579,651 to the personal services appropriation is recommended to cover costs incurred for recently negotiated salary increases for employees represented by International Association of Fire Fighters. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Association of Fire Fighters bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the General Fund Earmarked Salary Reserve to the Fire Department for these employees.

Strike Team – King City: An increase of $8,889 to the personal services appropriation is recommended to reimburse the department for unbudgeted overtime expenditures incurred during a strike team activity in King City. Additional unbudgeted revenues from this activity are available to offset these costs.

Remodeling – Bureau of Fire Prevention: An increase of $35,000 to the non-personal appropriation is recommended to complete the purchase of items related to a remodeling of the Bureau of Fire Prevention. Additional unbudgeted revenues from fee activities are available to offset these costs.

Fire Apparatus Retrofits: An increase of $80,000 to the non-personal appropriation is recommended to complete the retrofitting of four pumpers to front line status that were previously earmarked for replacement but funding was inadvertently omitted. Expenditure savings in the Police Department and Class/Comp Study City-wide appropriations are recommended to be used to offset the costs.

Overtime Adjustment: An increase of $800,000 to overtime is recommended to address the higher than budgeted overtime usage. Due to the higher than budgeted level of vacancies within the department and increased overtime usage related to training and development-related activities, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included. Higher overtime usage has been necessary to meet minimum staffing requirements.

9. General Services Department

• Increase the General Services’ Department's Personal Services appropriation by $14,693.

Modifications to the General Services’ Department's appropriations are recommended to provide sufficient funding as described below:

Salary Program: An increase of $14,693 to the personal services appropriation is recommended to cover costs incurred for recently negotiated salary increases for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the General Fund Earmarked Salary Reserve to the General Services Department for these employees.

10. Information Technology Department

• Decrease the Information Technology Department’s Personal Services appropriation by $250,000.

Modifications to the Information Technology Department's appropriations are recommended to provide sufficient funding as described below:

Payroll/Human Resources Project: Due to the high number of departmental vacancies, including the Chief Information Officer for a portion of the fiscal year, there are personal services savings well beyond the budgeted level. Those savings ($250,000) are recommended to be transferred to help support the Payroll/Human Resources Project City-Wide account.

Overtime Adjustment: An increase of $65,000 to overtime is recommended to address the higher than budgeted use of overtime. Due to the number of vacancies within the Department, in particular within the Communications Program, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime is recommended.

11. Library Department

• Decrease the Library Department's Non-Personal appropriation by $68,220.

• Increase the Library Department's Grants appropriation by $95,720.

Modifications to the Library Department's appropriations are recommended to provide sufficient funding as described below:

Kiosk Grant: An increase of $27,500 to Library Department’s grants appropriation is recommended to recognize the grant received from the State for a Kiosk. Additional unbudgeted revenues from the State are available to offset this cost.

Technical Adjustment: An increase of $68,220 to Library Department’s grants appropriation and corresponding decrease to its non-personal is recommended. This is necessary to correct an error that was made at mid-year for two grants that were inadvertently appropriated to Library’s non-personal appropriation.

Overtime Adjustment: An increase of $60,000 to overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department and the usage of overtime to backfill for staff who were on paid vacation, sick and disability leave, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

12. Parks, Recreation & Neighborhood Services Department

• Decrease the Parks, Recreation & Neighborhood Services Department's Non-Personal appropriation by $454,206.

• Decrease the Parks, Recreation & Neighborhood Services Department's Personal Services appropriation by $33,500.

• Increase the Parks, Recreation & Neighborhood Services Department's Fee Activities appropriation by $350,000.

Modifications to the Parks, Recreation & Neighborhood Services Department's appropriations are recommended to provide sufficient funding as described below:

Temporary Support: An increase of $33,500 to the non-personal appropriation is recommended to provide for expenses incurred for temporary personnel. These temporary positions, which have been charged to the non-personal appropriation, back-filled permanent positions funded in the personal services appropriation. As a result, it is necessary to transfer funding from personal services to non-personal to reflect the actual expenditure pattern.

Child Care Conference & Fair: An increase of $5,884 to the non-personal appropriation is recommended to offset costs associated with two fee-generating events held on a yearly basis: the Child Care Conference and the fair for the Month of the Young Child. Additional unbudgeted revenues in departmental charges are available to offset these costs.

Gang Task Force Retreat: An increase of $6,410 to the non-personal appropriation is recommended to offset costs associated with this fee-generating, annual retreat. Additional unbudgeted revenues in departmental charges are available to offset these costs.

Fee Activities: An increase of $350,000 to fee activities is recommended for various fee activity programs. Due to increased participation in various fee programs, costs and revenues were greater than anticipated. A corresponding increase to fee activity revenue is also recommended.

Technical Adjustment: A decrease of $500,000 to the non-personal appropriation is recommended to correct an error that was made during the Mid-Year Budget Review by appropriating Planning, Building and Code Enforcement Department’s moving and lease costs to Parks, Recreation and Neighborhood Services Department’s non-personal.

Overtime Adjustment: An increase of $110,000 to overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

13. Parks Maintenance

• Increase the Parks Maintenance Personal Services appropriation by $53,033.

Modifications to the Parks Maintenance appropriations are recommended to provide sufficient funding as described below:

Salary Program: An increase of $53,033 to the personal services appropriation is recommended to cover costs incurred for recently negotiated salary increases for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the General Fund Earmarked Salary Reserve to Parks Maintenance for these employees.

14. Planning Building and Code Enforcement Department

• Increase the Planning Building and Code Enforcement Department Non-Personal appropriation by $665,000.

• Decrease the Planning Building and Code Enforcement Department Personal Services appropriation by $50,000.

• Decrease the Planning Building and Code Enforcement Department Equipment appropriation by $50,000.

Modifications to the Planning, Building and Code Enforcement Department’s appropriations are recommended to provide sufficient funding as described below:

Miscellaneous Projects: An increase of $50,000 to the non-personal appropriation is recommended to provide for expenses incurred for public meeting notices and handouts for the Strong Neighborhood Initiatives process. Sufficient savings are available from the department’s personal services appropriation.

Technical Adjustment: As described above, an increase of $500,000 to the non-personal appropriation is recommended to correct an error that was made during the Mid-Year Budget Review by appropriating the moving and lease costs in Parks, Recreation and Neighborhood Services Department’s non-personal.

Consultant Study: An increase of $50,000 to the non-personal appropriation is recommended to recognize a pass-through agreement with a consultant for an area study for FMC to develop guidelines for future development of existing property. Additional unbudgeted revenues from this activity are available to offset these costs.

14. Planning Building and Code Enforcement Department (Cont’d.)

Imaging Center: An increase of $50,000 to the non-personal appropriation is recommended to accurately account for expenditures related to the imaging center. Sufficient savings are available from the department’s equipment appropriation.

Burrowing Owls: An increase of $15,000 to the non-personal appropriation is recommended to perform a survey to identify land parcels that can be exempted from the soon to be proposed Anti-Discing ordinance that has been reviewed by the Economic Development & Environment Committee. This ordinance has been developed to restrict the discing of vegetation on lands that have an impact on the survival of the Western Burrowing Owl. Offsetting the augmentation is a reduction to the Burrowing Owls Reserve.

Overtime Adjustment: An increase of $550,000 to overtime is recommended to address the higher than budgeted use of overtime. Due to the number of vacancies within the Department, in particular within the fee areas and Code Enforcement, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime is recommended.

15. Police Department

• Decrease the Police Department's Non-Personal appropriation by $80,500.

• Decrease the Police Department's Personal Services appropriation by $460,000.

• Increase the Police Department's Equipment appropriation by $255,500.

Modifications to the Police Department's appropriations are recommended to provide sufficient funding as described below:

Decentralization Study: An increase of $100,000 to the non-personal appropriation is recommended to provide funding for expanded scope of work for the Police Facility Decentralization study. This will increase funding for this study from $150,000 to $250,000. Sufficient savings are available from the department’s Personal Services appropriation.

Regional Auto Theft Task Force: An increase of $75,000 to the non-personal appropriation is recommended to purchase non-personal items for the Regional Auto Theft Task Force. This transfer of funding from personal services to non-personal is recommended to correct an appropriation error that occurred in the Adopted Budget process.

Airport Traffic Team: An increase of $255,500 to the equipment appropriation is recommended for the Airport Traffic Team. This transfer of funding from non-personal to equipment is recommended to correct an appropriation error that occurred in the Mid-Year Budget Review.

Vacancy Savings: A decrease of $285,000 to the personal services appropriation is recommended to provide funding for several departments and City-Wide appropriations who are expected to exceed their .

16. Public Works Department

• Increase the Department of Public Works’ Personal Services appropriation by $190,000.

Modifications to the Public Works’ Department's appropriations are recommended to provide sufficient funding as described below:

Development Program: An increase of $190,000 to the personal services appropriation is recommended to recognize expenses associated with the increased activity in the Development Program. Additional unbudgeted fee revenues are available to offset these costs.

Overtime Adjustment: An increase of $60,000 to overtime is recommended to address the higher than budgeted use of overtime. Due to the number of vacancies within the Department, in particular within the fee area, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime is recommended.

17. Streets and Traffic Department

• Increase Streets and Traffic Department's Personal Services appropriation by $70,129.

• Increase Streets and Traffic Department's Equipment appropriation by $81,295.

Modifications to Streets and Traffic Department's appropriations are recommended to provide sufficient funding as described below:

Salary Program: An increase of $70,129 to the personal services appropriation is recommended to cover costs incurred for recently negotiated salary increases for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the General Fund Earmarked Salary Reserve to the Streets and Traffic Department for these employees.

Equipment: An increase of $81,295 to equipment is recommended to cover increased costs incurred for new equipment approved for 2000-2001. Funding is available from savings for replacement of Streets’ vehicles. Those savings are recommended to be transferred to help support the new equipment.

17. Streets and Traffic Department (Cont’d.)

Overtime Adjustment: An increase of $305,000 to overtime is recommended to address the higher than budgeted use of overtime. Due to the number of vacancies within the Department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime is recommended.

18. Citywide

• Increase the State of the City Convocation appropriation by $35,000.

This funding would support increased expenses related to the State of the City Convocation. This funding is supported by revenue collected from the attendees and donations.

• Increase the HR/Payroll city-wide appropriation by $500,000.

As described in the Information Technology and Finance Departments, funds are available for reallocation from the departments’ personal services to support this project.

• Establish an Energy Usage appropriation in the amount of $1,000,000.

The establishment of an Energy Usage appropriation for use by departments for higher than budgeted costs for gas and electric is recommended. Due to the volatility of the electric and gas markets, a reserve was established for Potential Gas and Electric Costs during the Mid-Year Budget. The action recommended here is to transfer the funds from that Reserve ($350,000) to a live appropriation and to augment those funds to accommodate additional costs due to rate increases recently approved by the Public Utilities Commission the size of which was not anticipated at the time the reserve was established. Revenue in the form of higher utility tax collections is available to offset the augmentation ($650,0000).

• Increase the Silicon Valley Football Classic appropriation by $150,000.

Additional funding of $150,000 for the Silicon Valley Football Classic is recommended. This completes the City’s obligation to help support this new annual event. San Jose State University, who co-sponsored the event, has requested the additional City support. Expenditure savings in the Police Department and Class/Comp City-wide appropriations are recommended to be used to offset this cost.

• Increase the Executive Recruitment Loans appropriation by $250,000.

Additional funding of $250,000 for Executive Recruitment Loans is recommended. As part of the terms of a recent executive employment agreement, one additional loan has been executed. Expenditure savings in the Police Department and Class/Comp City-wide appropriations are recommended to be used to offset this cost.

• Decrease the Class/Comp appropriation by $300,000.

This clean-up decreases the amount of funding appropriated for the Class/Comp study that was erroneously double-budgeted as part of Annual Report actions.

• Establish an Energy Consultant appropriation in the amount of $115,000.

Funding of $115,000 for Energy Consultants used by the Environmental Services Department to assist in delivering the City’s Summit Energy Plan. Additional utility tax revenues are available to offset this cost.

• Establish a Community Based Aftercare Program appropriation in the amount of $800,000.

Grant funding in the amount of $800,000 for a Community Based Aftercare Program has been received by Parks, Recreation and Neighborhood Services. Additional unbudgeted revenues from the State can offset this cost.

19. Other City-Wide

• Decrease the Burrowing Owl Habitat Reserve by $15,000.

This adjustment is necessary to provide the funds for the previously identified survey in Planning, Building and Code Enforcement Department for property discing.

• Decrease the Potential Gas and Electric Costs Reserve by $350,000.

This adjustment is necessary to provide the funds held in reserve for use by departments for increased gas and electric costs.

• Decrease the Transfer to the Vehicle Maintenance and Operations Fund by $81,295.

This adjustment is necessary to provide the funds necessary for the previously identified funding shortfall in Streets and Traffic Department’s equipment appropriation.

• Increase the Fire Fee Supported Reserve appropriation by $965,000.

• Increase the Building Fee Supported Reserve appropriation by $3,300,000.

• Increase the Planning Fee Supported Reserve appropriation by $560,000.

These adjustments are necessary to recognize higher than budgeted revenues to be received by the Fire and Planning, Building and Code Enforcement Departments for their fee programs, and place these funds in reserve for later use in the Fire, Building and Planning Fee Programs.

• Decrease the Earmarked Salary Reserve appropriation by $5,750,358.

A decrease of $5,750,358 is recommended for the Earmarked Salary Reserve to cover costs incurred for recently negotiated salary increases for employees represented by International Operating Engineers and International Association of Fire Fighters. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases which became effective after the adoption of the 2000-2001 Operating Budget. At that time there were still two bargaining groups (International Operating Engineers and International Association of Fire Fighters) whose contracts had not yet expired. This adjustment is necessary to support increased expenditures in several departments.

• Decrease the Transfer to the Gift Trust Fund by $500.

• Increase the Ending Fund Balance by $500.

This action reverses an error in the accounting for a VOLT Program gift. It was previously assumed that the revenue associated with this gift had been received in the General Fund and needed to be transferred to the Gift Trust Fund. However, it was subsequently discovered that these funds had been recorded in the Depositor’s Fund and had been correctly transferred to the Gift Trust Fund.

• Establish a Transfer to the Airport Revenue Fund in the amount of $206,618.

• Decrease the Ending Fund Balance by $206,618.

A transfer to the Airport Revenue Fund is proposed to reflect the Airport’s portion of the proceeds from a legal settlement with Bank of America that were recorded in the General Fund in 1999-2000.

• Increase the Ending Fund Balance estimate by $232,773.

This technical adjustment increases the Ending Fund Balance to correct an error made when the 1999-2000 Ending Fund Balance was reconciled in October 2000 as part of the 1999-2000 Annual Report.

• Increase the Ending Fund Balance estimate by $13,000,000.

This action increases the Ending Fund Balance appropriate in the amount assumed in the 2001-2002 Proposed Operating Budget. It reflects the net impact of adjusting various revenue estimates in the General Fund.

20. Revenue Estimate Revisions

• Increase the Beginning Fund Balance estimate by $232,773.

This technical adjustment increases the Beginning Fund Balance to correct an inadvertent omission when the 1999-2000 Ending Fund Balance was reconciled in October 2000 as part of the 1999-2000 Annual Report.

• Increase the estimate for revenue from Departmental Charges by $1,187,294.

This adjustment is required to recognize revenues received by Public Works ($190,000), Parks, Recreation & Neighborhood Services Department ($362,294), Planning, Building and Code Enforcement ($560,000), and Conventions, Arts and Entertainment ($75,000).

• Increase the estimate for revenue from Utility Tax by $765,000.

This adjustment is required to recognize revenues received from utility tax revenues to be used to support departmental gas and electric costs for departments and Energy Consultant costs.

• Increase the estimate for Other Revenue by $85,000.

This adjustment is required to recognize revenues received from attendees and donors for the State of the City Convocation ($35,000) and a reimbursement from FMC for a consultant study in Planning, Building and Code Enforcement Department ($50,000).

• Increase the estimate for revenue from the State by $836,389.

This adjustment is required to recognize revenues received by Parks, Recreation and Neighborhood Services ($800,000), Library ($27,500), and the Fire Department ($8,889) from the State.

• Increase the estimate for revenue from Licenses and Permits by $4,300,000.

This adjustment is required to recognize revenues estimated to be received by Planning, Building and Code Enforcement ($3,300,000) and Fire Departments ($1,000,000).

• Increase the estimate for revenue from Transfers and Reimbursements by $913,875.

• Decrease the estimate for revenue from the Federal Government by $913,875.

This technical adjustment is required to reclassify the disaster relief revenue received from the Emergency Reserve Fund that was recognized in October 2000 as part of the 1999-2000 Annual Report actions.

• Decrease the estimate for revenue from the State of California by $493,751.

• Increase the estimate for revenue from Departmental Charges by $493,751.

This technical adjustment is required to reclassify the POST reimbursement for the driver-training program in the Police Department.

The actions recommended below are necessary to bring the year-end revenue estimates in line with the General Fund Ending Fund Balance estimate as described in the 2001-2002 Proposed Operating Budget ($13.0 million).

• Increase the estimate for revenue from Property Tax by $1,500,000.

• Increase the estimate for revenue from Sales Tax by $3,700,000.

• Increase the estimate for revenue from Utility Tax by $500,000.

• Increase the estimate for revenue from Fines and Forfeitures by $750,000.

• Increase the estimate for revenue from Money and Property by $3,500,000.

• Increase the estimate for revenue from the State of California by $750,000.

• Increase the estimate for revenue from the Other Revenue by $800,000.

• Increase the estimate for revenue from Transfers and Reimbursements* by $1,500,000.

* (This action includes a transfer in the amount of $738,000 from the Services for Redevelopment Capital Projects Fund (450) to transfer the interest earnings estimated for 2000-2001.)

LOW AND MODERATE INCOME HOUSING FUND (443)

• Increase the Planning, Building and Code Enforcement Department’s Personal Services appropriation by $20,000.

• Decrease the Ending Fund Balance by $20,000.

Modifications to appropriations in the Low and Moderate Income Housing Fund are recommended to provide sufficient funding as described below:

Planning, Building and Code Enforcement Department: An increase of $20,000 to the Planning, Building and Code Enforcement Department’s personal services appropriation is recommended. This increase is necessary to cover the cost of staff salary increases that occurred during 2000-2001. Sufficient funding is available from the Ending Fund Balance.

Overtime Adjustment: An increase of $10,000 to Planning, Building and Code Enforcement Department’s overtime is recommended to address the higher than budgeted use of overtime. Due to the number of vacancies within the Department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime is recommended.

CONVENTION AND CULTURAL AFFAIRS FUND (536)

• Increase the Earned Revenue by $300,000.

• Increase the Office of Cultural Affairs' Non-Personal appropriation by $50,000.

• Increase the Convention Arts and Entertainment's Non-Personal appropriation by $250,000.

Modifications to the Conventions, Arts and Entertainment Department's appropriations are recommended to provide sufficient funding as described below:

Packard Foundation Arts grant: An increase of $50,000 to the Office of Cultural Affairs’ non-personal for the arts program is recommended. The department was awarded a grant from the Packard Foundation to provide support and technical assistance grants to San Jose arts organizations. Additional unbudgeted revenues are available to offset these costs.

Non-Personal: An increase of $250,000 to the department’s non-personal is recommended. High occupancy levels and services required for several events at Convention Center facilities and vacancies in several key areas have caused the department to increase its non-personal expenditures to maintain customer satisfaction levels. In addition, increased funding for gas and electric is necessary cover the high costs of gas and electric. Additional unbudgeted revenues of $250,000 are available to offset these costs.

Overtime Adjustment: An increase of $150,000 is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

AIRPORT CUSTOMER SERVICE & TRANSPORTATION FEE FUND (519)

• Increase Earned Revenue by $631,854.

• Increase the Airport Department’s Non-Personal appropriation by $636,316.

• Decrease the Contingency Reserve by $4,462.

The demand for rental car shuttle service made it necessary to increase the number of service hours from the budgeted 42,000 to approximately 60,000 per year. This level of service required the lease of two additional shuttle buses and resulted in an increase in program costs, expenses for the operation and maintenance of the buses. A small decrease to the Contingency Reserve and additional unbudgeted revenues will offset this increase.

AIRPORT REVENUE FUND (521)

• Increase Earned Revenue by $3,700,000.

• Increase the Transfer to the Airport Surplus Revenue Fund by $3,700,000.

The above actions reflect an increase in the Passenger Facility Charge (PFC) revenue estimate due to higher enplanement levels. As a result, an increase in the estimated transfer is necessary to accommodate this greater level of enplanement activity.

• Increase Interfund Transfers $16,377

• Increase Ending Fund Balance by $16,377.

The above actions are necessary since the debt service requirement in the Airport Fiscal Agent Fund (525) had declined, and the corresponding increase in the excess reserve must be transferred back to this fund.

• Increase Interfund Transfers $206,618

• Increase Ending Fund Balance by $206,618.

A transfer from the General Fund is proposed to reflect the Airport’s portion of the proceeds from a legal settlement with Bank of America that were recorded in the General Fund in 1999-2000.

AIRPORT SURPLUS REVENUE FUND (524)

• Increase Interfund Transfers by $3,700,000

• Increase the Transfer to the Airport Passenger Facility Charge Fund by $3,700,000

AIRPORT MAINTENANCE AND OPERATIONS FUND (523)

• Increase the Airport Department’s Non-Personal appropriation by $2,900,000

• Increase Workers’ Compensation Claims Payments appropriation by $100,000

• Decrease the Operating Contingency Reserve by $3,000,000

Modifications to the Airport Department's appropriations are recommended to provide sufficient funding as described below:

Space Requirements: An increase of $719,000 to the department’s non-personal for additional lease costs is recommended. In order provide sufficient space for the department’s administrative staff and Master Plan consultants in the same facility, additional space was leased.

Energy Costs and Small Energy Efficiency Projects: An increase of $339,000 to the department’s non-personal is recommended to cover higher costs of gas and electric ($221,000) and to improve energy efficiency at Airport facilities ($118,000).

Consultant/Legal Services: An increase of $1,724,000 to the department’s non-personal is recommended for several attorney/consultant agreements that were essential to operations. These agreements were related to the Airport capital improvement program and include financial feasibility and environmental studies.

Insurance: An increase of $118,000 to the department’s non-personal is recommended for increased insurance costs. This increased cost is primarily due to the exclusion of the coverage for the shuttle buses, which was previously covered by the shuttle provider. The Airport now leases the buses.

Workers Compensation Claims: An increase of $100,000 to the Finance Department’s Workers Compensation Claims appropriation is recommended. Additional funding is necessary to cover increased expenditures. Funding is available from the Operating Contingency.

Overtime Adjustment: An increase of $300,000 is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

AIRPORT FISCAL AGENT FUND (525)

• Increase Interfund Transfer to the Airport Revenue Fund by $16,377

• Decrease the Ending Fund Balance by $16,377.

The above actions are required since the debt service requirement in Fund 525 had declined, and there was an increase in the excess reserve that must be transferred back to Fund 521.

MUNCIPAL HEALTH SERVICES PROGRAM FUND (132)

• Decrease the City Attorney’s Personal Services appropriation by $20,000.

• Increase City Attorney’s Non-Personal appropriation by $20,000.

• Decrease Certified Cost Reports appropriation by $15,194.

• Decrease overhead appropriation by $32,000.

• Increase patient Services Information appropriation by $2,000.

• Increase Phase Down Plan appropriation by $1,200.

• Increase Quality Assurance/Utilization Review appropriation by $17,000.

• Decrease Community Information appropriation by $8,000.

• Increase Ending Fund Balance by $34,994.

Modifications to appropriations in the Municipal Health Services Program (MHSP) Fund are recommended to provide sufficient funding as described below:

Office of the City Attorney Non-personal: An increase of $20,000 to the Office of the City Attorney’s non-personal is recommended to cover unanticipated expenditures associated with special meeting costs. Sufficient funding is available from the Ending Fund Balance.

Certified Cost Reports, Community Information & Overhead: These decreases are recommended to reflect the reduced number of hours for the audit and the decrease in overhead costs. 2000-2001 is the third year that the same accounting firm has been used and their familiarity with the City’s cost reporting process has resulted in this savings. The funds are available to be added to the Ending Fund Balance.

Patient Services: An increase in the amount of $2,000 for Patient Services is recommended to cover the increased demands of the Vial of Life program sponsored by the San Jose Fire Department and the production of the quarterly newsletter. Sufficient funding is available from the Ending Fund Balance.

Phase Down Plan: An increase of $1,200 to the Phase Down Plan appropriation is recommended. MHSP is conducting a survey of its participants to assess patient satisfaction and benefits derived from services provided by MHSP clinics. To ensure complete validity, objectivity, and integrity of the research survey, MHSP contracted with a private firm that has demonstrated survey analysis and implementation expertise. Additional funding is necessary to complete the analysis and the written report. Sufficient funding is available from the Ending Fund Balance.

Overtime Adjustment: An increase of $5,000 is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

STORM SEWER OPERATING FUND (446)

• Increase Streets and Traffic’s Personal Services appropriation by $18,346.

• Establish a Non-Personal appropriation for Public Works in the amount of $100,000.

• Increase the Finance Department’s Workers’ Compensation Claims Payments appropriation by $17,000.

• Decrease the Ending Fund Balance by $135,346.

Modifications to the Storm Sewer Operating Fund’s appropriations are recommended to provide sufficient funding as described below:

Salary Program: An increase of $18,346 to Streets and Traffic Department’s personal services is recommended to cover costs incurred for recently negotiated salary increases for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the Ending Fund Balance to Streets and Traffic Department for these employees.

Guadalupe River Park: An increase of $100,000 to Public Works’ Department’s non-personal is recommended to cover costs incurred by the Public Works Department to coordinate and review the design of the storm drain potion of the Guadalupe River Park project. This adjustment is recommended to be offset by a reduction to the Ending Fund Balance.

Workers Compensation Claims: An increase of $17,000 to the Finance Department’s Workers Compensation Claims appropriation is recommended. Additional funding is necessary to cover increased expenditures. Funding is available from the Ending Fund Balance.

Streets and Traffic Overtime Adjustment: An increase of $10,000 to Streets and Traffic Department’s overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

Environmental Services Overtime Adjustment: An increase of $10,000 to Environmental Services Department’s overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

SEWER SERVICE AND USE CHARGE FUND (541)

• Increase Streets and Traffic’s Personal Services appropriation by $34,972.

• Increase the Collection Costs appropriation by $11,000.

• Increase the Finance Department’s Workers’ Compensation Claims Payments appropriation by $59,000.

• Decrease the Ending Fund Balance by $104,972.

Modifications to Sewer Service and Use Charge Fund appropriations are recommended to provide sufficient funding as described below:

Salary Program: An increase of $34,972 to Streets and Traffic Department's personal services is recommended to cover costs incurred for recently negotiated salary increases for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the Ending Fund Balance to Streets and Traffic Department for these employees.

Collection Costs: An increase of $11,000 to the Collection Costs appropriation is recommended to provide sufficient funding for higher than budgeted collection costs. Funding is available from the Ending Fund Balance.

Workers Compensation Claims: An increase of $59,000 to the Finance Department’s Workers Compensation Claims appropriation is recommended. Additional funding is necessary to cover increased expenditures. Funding is available from the Ending Fund Balance.

Streets and Traffic Overtime Adjustment: An increase of $160,000 to Streets and Traffic Department's overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

Environmental Services Overtime Adjustment: An increase of $1,000 to Environmental Services Department’s overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

STATE DRUG FORFEITURE FUND (417)

• Increase the Beginning Fund Balance by $20,000.

• Increase the Ending Fund Balance by $20,000.

These actions correct a technical error in the Appropriation Ordinance.

MAINT. DISTRICT #1 LOS PASEOS FUND (352)

• Increase the Beginning Fund Balance by $2,700.

• Increase the Ending Fund Balance by $2,700.

• Decrease Streets and Traffic Department’s Personal Services appropriation by $50,000.

• Increase Streets and Traffic Department’s Non-Personal appropriation by $50,000.

Modifications to the Streets and Traffic Department's appropriations are recommended to provide sufficient funding as described below:

Fund Balance Adjustment: An increase of $2,700 to both the Beginning and Ending Fund Balance is recommended to correct for an error in the calculation that was made in the Annual Report.

Landscape Maintenance: A reallocation of $50,000 to non-personal from personal services is recommended to reflect the transfer of responsibilities for landscape maintenance to contractual services.

MAINT. DISTRICT #6 RIVER OAKS FUND (359)

• Increase Streets and Traffic Department’s Personal Services appropriation by $238.

• Decrease the Ending Fund Balance by $238.

An adjustment of $238 to personal services is recommended to cover the cost of staff salary increases for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired. This adjustment will appropriate sufficient resources from the Ending Fund Balance to Streets and Traffic Department for these employees.

MAINT. DISTRICT #15 SILVER CREEK FUND (368)

• Increase Streets and Traffic Department’s Personal Services appropriation by $2,000.

• Decrease the Ending Fund Balance by $2,000.

An adjustment of $2,000 to personal services is recommended to cover the cost of staff salary increases. for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired This adjustment will appropriate sufficient resources from the Ending Fund Balance to Streets and Traffic Department for these employees.

GENERAL PURPOSE PARKING FUND (533)

• Increase Streets and Traffic Department’s Personal Services appropriation by $1,684.

• Decrease the Ending Fund Balance by $1,684.

An adjustment of $1,684 to personal services is recommended to cover the cost of staff salary increases. for employees represented by International Operating Engineers. During the Mid-Year Budget Review, funding was distributed to various departments for negotiated salary increases, which became effective after the adoption of the 2000-2001 Operating Budget. At that time the International Operating Engineers bargaining group’s contract had not yet expired This adjustment will appropriate sufficient resources from the Ending Fund Balance to Streets and Traffic Department for these employees.

VEHICLE MAINTENANCE AND OPERATIONS FUND (552)

• Decrease the Interfund Transfers by $1,295.

• Decrease the Vehicle Replacement by $81,295.

• Increase the Non-Personal appropriation by $80,000.

• Increase the Workers’ Compensation Claims Payments appropriation by $46,000.

• Decrease the Ending Fund Balance by $46,000.

Modifications to the General Services Department's appropriations are recommended to provide sufficient funding as described below:

Vehicle Replacement: As previously discussed, a decrease of $81,295 to Vehicle Replacement appropriation is recommended to reflect anticipated savings from the replacement of vehicles for Streets and Traffic. These savings are recommended to be utilized to cover higher than anticipated costs of new equipment for the same department.

Fire Apparatus Retrofit: An increase of $80,000 to non-personal to complete the retrofitting of four pumpers to front line status that were previously earmarked for replacement. Additional unbudgeted revenues of $80,000 are available to these costs.

Workers Compensation Claims: An increase of $46,000 to the Finance Department’s Workers Compensation Claims appropriation is recommended. Additional funding is necessary to cover increased expenditures. Funding is available from the Ending Fund Balance.

WORFORCE INVESTMENT ACT FUND (290)

• Increase the Earned Revenue estimate by $3,702,349.

• Increase the Adult Workers’ appropriation by $7,039.

• Increase the Youth Workers’ appropriation by $987.

• Increase the Dislocated Workers’ appropriation by $207,722.

• Establish a Caregiver Training Grant appropriation in the amount of $2,690,210.

• Increase the NOVA Matching Funds appropriation by $245,000

• Increase the One-Stop Career System Implementation Grant appropriation by $9,391

• Establish a Packard Foundation Grant appropriation in the amount of $64,500.

• Establish the Workforce Investment Act - SALT appropriation in the amount of $25,000.

• Increase the Rapid Response Grant appropriation by $452,500.

These actions are recommended to recognize current year revenues anticipated to be received by the end of the fiscal year in the Workforce Investment Act Fund and their related expenditures.

INTEGRATED WASTE MANAGEMENT FUND (423)

• Increase the Single Family Recycle Plus appropriation by $80,000.

• Increase the Yard Trimmings appropriation by $161,160.

• Decrease the Muli-Family Recycle Plus appropriation by $241,160.

• Increase the Finance Department’s Workers’ Compensation Claims Payments appropriation by $60,000.

• Decrease the Contingency Reserve by $60,000.

Modifications to the Environmental Services’ Department’s appropriations are recommended to provide sufficient funding as described below:

Residential Recycle Plus Program: An increase of $80,000 to the Environmental Services’ Department SFD RP (single family dwelling recycle plus) for increases in residential recycling is recommended to meet contractual obligations. Green Team and USA Waste are expected to meet all of their recycling incentive payments as well as a need to cover increased hauling activity. In addition, an increase in the Yard Trimmings program is recommended to cover increased levels of activity for the Zanker road and IDC/Green Waste (BFI) contracts. Funding is available in the Multi-Family program due to Green Team not meeting their incentive payment goals and is available to offset the requested increase in the two appropriations.

Workers Compensation Claims: An increase of $60,000 to the Finance Department’s Workers Compensation Claims appropriation is recommended. Additional funding is necessary to cover increased expenditures. Funding is available from this fund’s Contingency Reserve.

TREATMENT PLANT OPERATING FUND (513)

• Increase the Environmental Services Department’s Non-Personal appropriation by $1,012,000.

• Decrease the Environmental Services Department’s Personal Services appropriation by $1,012,000.

Modifications to the Environmental Services’ Department’s appropriations are recommended to provide sufficient funding as described below:

Energy Costs: An increase of $1,012,000 to non-personal is recommended to cover the projected costs of higher energy costs ($1,000,000) at the Water Pollution Control Plant, as well as the additional costs of six electric carts ($12,000).

TREATMENT PLANT OPERATING FUND (513) (Cont’d.)

Overtime Adjustment: An increase of $131,000 to Environmental Services Department’s overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

SEWAGE TREATMENT PLANT CONNECTION FEE FUND (539)

• Increase Collection Costs appropriation by $40,000.

• Decrease the Reserve for Treatment Plant Expansion appropriation by $40,000.

Modifications to the Sewage Treatment Plant Connection Fee Fund appropriations are recommended to provide sufficient funding for increased collection costs. Funding is available from the Reserve for Treatment Plant Expansion.

LIBRARY BENEFIT ASSESSMENT DISTRICT FUND (412)

An increase of $20,000 to Library’s overtime is recommended to address the higher than budgeted usage of overtime. Due to the number of vacancies within the department and the usage of overtime to backfill for staff who were on paid vacation, sick and disability leave, a reallocation of personal services savings to overtime to offset the projected shortfall in overtime has been included.

EMERGENCY RESERVE FUND (406)

• Increase the Beginning Fund Balance by $913,875.

• Establish a Transfer to the General Fund in the amount of $913,875.

These technical corrections are necessary to correctly reflect the Beginning Fund Balance as recorded in the Comprehensive Annual Financial Report (CAFR) and to reflect the transfer of $913,875 to the General Fund to reimburse this fund for disaster relief cost.

GIFT TRUST FUND (139)

• Decrease the Interfund Transfers by $500.

• Decrease the Reserve for Gifts by $500.

These actions reverse an error in the accounting for a VOLT Program gift. It was previously assumed that the revenue associated with this gift had been received in the General Fund and needed to be transferred to the Gift Trust Fund. However, it was subsequently discovered that these funds had been recorded in the Depositor’s Fund and had been correctly transferred to the Gift Trust Fund.

• Establish a Major Awards Banquet appropriation of $6,150.

• Decrease the Reserve for Gifts by $6,150.

The creation of an appropriation is recommended to provide funds for the First Annual Major Awards Banquet. The Major Awards Banquet will recognize unique deeds of the Police Department’s personnel and members of the community. Members of private industry, community groups, employee associations and other donors have donated funds and services to help defray the expenses of the banquet.

GAS TAX MAINTENANCE & CONSTRUCTION FUNDS

• Increase the estimate for earned revenue in the 1943 Gas Tax Maintenance and Construction Fund by $300,000.

• Increase the Transfer to the General Fund in the 1943 Gas Tax Maintenance and Construction Fund by $300,000.

• Increase the estimate for earned revenue in the 1990 Gas Tax Maintenance and Construction Fund by $200,000.

• Increase the Transfer to the General Fund in the 1990 Gas Tax Maintenance and Construction Fund by $200,000.

These actions are recommended to recognize current year revenues anticipated to be received by the end of the fiscal year in two of the Gas Tax Maintenance and Construction Funds. The corresponding actions to recognize these revenues as part of the General Fund were approved by the City Council in February.

LIFE INSURANCE FUND (156)

• Increase the Interfund Transfers by $30,000.

• Increase the Non-Personal appropriation by $30,000.

It is anticipated that revenues and expenditures for the Life Insurance premiums will be higher than budgeted due to staff salary increases and hiring activity greater than was anticipated.

UNEMPLOYMENT INSURANCE FUND (157)

• Decrease the Interfund Transfers by $5,000.

• Increase the Claims Reserve appropriation by $15,000.

• Decrease the Ending Fund Balance by $20,000.

An adjustment of $5,000 to revenues is recommmended due to Employer contributions being lower than anticipated. Expenditures for claims from the State Employment Development Department were higher than budgeted. The recommended increase can be offset by a decrease to the Ending Fund Balance.

BENEFIT FUND (160)

• Increase the Earned Revenue estimate by $67,000.

• Increase the Interfund Transfers by $403,000.

• Increase the Health Premiums appropriation by $421,000.

• Increase the Employee Assistance Program (EAP) appropriation by $49,000.

These offsetting adjustments to the Health Premiums and EAP revenue and expenditure appropriations are necessary to accommodate unexpected activity levels. These increases are primarily increased efforts by departments to fill vacancies in the second half of the year greater than anticipated.