Memorandum

City of Lawrence

City Manager’s Office

 

DATE:

June 16, 2008

TO:

David L. Corliss, City Manager

FROM:

Casey Liebst, Budget Manager

CC:

Cynthia Boecker, Assistant City Manager

Diane Stoddard, Assistant City Manager

RE:

Amendment to the 2008 Budget - Transportation Fund

 

Please place the following items on the City Commission agenda for consideration at their June 24, 2008 meeting:

 

Background

The City Manager’s Recommended 2008 Operating and Capital Improvement Budget included a reduction to the number of hours of service of the City’s public transit system necessary due to revenue limitations in Fund 210, the Transportation Fund. 

 

Rather than reduce service levels, the City Commission instructed staff to transfer funds from the City’s Equipment Reserve Fund into Fund 210 to cover the increase in operating costs.  Transfers totaling $800,000 had been made in prior years from the Transportation Fund to the Equipment Reserve Fund for the future acquisition of buses.     

 

Resolution 6734 was adopted on August 14, 2007, authorizing the transfer of $232,000 from the Equipment Reserve Fund into the Transportation Fund.  This transfer resulted in Fund 210 having a larger beginning fund balance in 2008 than was budgeted.  In order to spend the additional resources, it is necessary to amend the 2008 Operating and Capital Improvement Budget. 

 

Process to Amend the Budget

K.S.A. 79-2929a authorizes the governing body of a municipality to amend its adopted current budget when the actual beginning balance exceeds the estimated beginning balance so that there is sufficient budget authority to use the excess balance. 

 

The statute allows the budget to be amended during the year in which such budget is in effect subject to the same publication, notice and public hearing requirements as required by K.S.A. 79-2929, and amendments thereto, for the adoption of the original budget.

 

Action Item

Staff requests the City Commission authorize the publication of the proposed amendment to the 2008 Budget and set July 8, 2008 as the public hearing date, if appropriate.