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FC CASE AUTHORIZE LINE ITEM REALLOCATIONS IN THE 1997 ADOPTED BUDGET FOR COST CENTER #452 - PARK MAINTENANCE By: Jessie Hart, Finance Officer Background: Each month a detail report comparing actual expenditures to the annual operating budget is distributed to those individuals who have responsibility over those areas [department heads and supervisors]. Through analysis of these reports we are able to identify areas where problems are likely to occur - due to changing factors from when the budget was originally adopted. An analysis such as this occurred in May of this year with the Park Maintenance budget. There were several areas identified where actual expenditures and commitments already exceeded the adopted budget and others where it looked as though the actual may be substantially less than the budgeted amounts. Several conversations and written memos were shared with the Parks/Utilities Supervisor and the City Engineer requesting recommendations on how we might resolve this issue. Due to no response to the situation, former City Administrator Ryan Schroeder issued a memorandum stating that the request to purchase the 1-ton in the parks budget would not be placed on the Council agenda until the situation is resolved. An additional opportunity was given to resolve this issue when each department head and supervisor was requested to provide projections as to the anticipated status of each cost center and department for 1997. These responses were due back to me by October 15, 1997, in anticipation of presenting a 1997 budget amendment case at this meeting. Because of lack of time constraints, the Finance Department has not been able to address the entire budget at this time, although it is necessary that we address at least the Park Maintenance cost center at this time. The next case on your agenda is to approve the purchase of the 1-ton truck included in the 1997 budget. This is being placed on this agenda in response to the vendor notification that the last day orders will be accepted for the 1-ton chassis is October 29, 1997. We have also been informed that the 1-ton chassis will not be manufactured in the 1998 model, thus creating the need to order now if so authorized. In order to facilitate the reconciliation of the budgetary issues I have attached a report showing the status of each line item within the Parks Maintenance budget. As you can see there are several line items that are over budget and others that are under. Based on recommendations from the Parks/Utilities Supervisor, the following line item reallocations could be made in order to keep the budget in line without increasing the total amount originally budgeted for the cost center.