This memorandum presents a recommended budget adjustment to bring FY 2014 – 2015 expenditures in line with FY 2014 – 2015 estimated levels.  The final reconciliation will be presented in the FY15 Comprehensive Annual Financial Report (CAFR).  The City Charter requires City Council approval of any budget amendment that “transfers part or all of any unencumbered appropriation balance from one department and office to another.”  Therefore, the City Council is being asked to review and approve the Year-end Budget Amendment Request for FY 2014 – 2015.

As part of completing the FY 2014 – 2015 year-end closeout, appropriation adjustments to certain expenditure accounts are necessary to address overspending when compared to the FY15 Budget.  The total budget amendment request is for $262,213.  The accounts that will be affected and the reasons for the increase are as follows:

City Attorney Services – The City was involved in more legal matters/cases during FY 2014 – 2015 than what was expected, resulting in an additional $75,476 of attorney service fees being incurred than was budgeted for.

Professional Services – Misc. – An outside CPA firm was engaged to assist with year-end closing procedures and the preparation of the FY14 CAFR.  The cost of this was $63,755, which was not originally budgeted for.

Annual Audit Services –The cost for the audit of the FY14 financial statements exceeded the amount budgeted by $92,850.  The Auditors had to perform additional work that was not included in the original scope of audit services. 

Credit Card Charges – Credit Card processing charges have historically been around $40,000/year.  The original budgeted amount for this expenditure does not coincide with this historical trend or what was incurred in  FY15.  The amendment request includes an increase of $37,984 to better reflect the amount typically incurred annually.

Automotive Parts – The vehicle used by the Billing & Collection Division was under repair for a large amount of the fiscal year.  The nature of the repairs were more significant than what was budgeted for.