18 - Proposed Budget Discussion and Direction

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balance the FYI 9/20 Budget. It then came to his attention that this figure in 01-9999-91-00 is an accounting adjustment that is artificially and incorrectly canceling out three specific expenses in the FYI 9/20 Budget, thus causing the appearance that the FY20/21 Budget is approximately $848k more than FY19/20. Actually, the $650,000.00 consists of the following: 1. $20,000.00 Transfer from General Fund to Capital Fund for Library Building Repairs. This was budgeted and approved in Ordinance 2019-031, but was not entered in to the budget software until the error was discovered on April 22, 2020. This is not specifically identified in its own line item, but likely under 01-0401-64-00. 2. $120,000.00 Transfer from General Fund Reserves to the Police Department Budget for a new Police Phone System, via Ordinance 2019-047 to amend the Budget adopted in Ordinance 2019-031. This item is found under 01-1003-31-99. 3. $510,000.00 Transfer from General Fund Reserves to the General Expense Budget for CoVid-19 Testing Kits, via Ordinance 2020-010 to amend the Budget adopted in Ordinance 2019-031. This item is found under 01-0370-89-00. In the end, depending on how one views "increases" in budget from year to year, the City Manager still states that the Proposed FY20/21 Budget is $198,218.00 more than the FY19/20 Budget, instead of the previously shown $848,218.00 when the $650,000.00 adjustment is listed which cancels these three expenses out incorrectly. Staff are looking into this issue. It nevertheless does not impact the Proposed FY20/21 Budget, but it was important enough to correct and restate here. BUDGET: This item represents the Proposed FY20/21 Budget. OPTIONS: 1. Continue to review, ask questions, and/or request edits to the Proposed FY20/21 Budget. 2. Approve the Budget as drafted in preparation for Public Hearings to be held in September. RECOMMENDATION: Approve the Budget as drafted in preparation for Public Hearings to be held in September. The following agenda item will accomplish this via Resolutions.