Agenda Item - 2024-02-20 - Number 10.1 - Resolution 24-07, Adjusting the Budget by Adopting a Supplemental Budget 10.1
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Subject: Resolution 24-07, Adopting a Supplemental Budget
Meeting Date: February 20, 2024 Staff Member: Shawn Cross, Finance Director
Report Date: February 2, 2024 Department: Finance
Action Required Advisory Board/Commission Recommendation
❑ Motion ❑ Approval
❑X Public Hearing ❑ Denial
❑ Ordinance ❑ None Forwarded
❑X Resolution ❑X Not Applicable
❑ Information Only Comments:
❑ Council Direction
❑ Consent Agenda
Staff Recommendation: Adopt Resolution 24-07 as submitted.
Recommended Language for Motion: Move to adopt Resolution 24-07, modifying the 2023-
25 biennial budget through a supplemental budget.
Project/ Issue Relates To: 2023-25 Biennial Budget
Issue before Council (Highlight Policy Question):
❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑S Not Applicable
BACKGROUND
Throughout a budget year, new information may give reason to make adjustments to the
adopted budget. Local Budget Law allows these adjustments under certain conditions and with
certain requirements. This request is brought forward as a consent resolution transfer and
does not require a public hearing.
DISCUSSION
This budget amendment is requested after a staff review of the comparison of actual biennium-
to-date revenues and expenditures with the current budget. Budgets were also evaluated to
Respect, Excel'erce. Trust. Service.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
Page 2
ensure there was sufficient appropriation for transactions that will occur before the end of the
biennium (Bn).
Explanations for all of the adjustments contained in this supplemental budget are included
below.
• The Parks Bond Fund needs to reallocate some appropriations from Bn 2021-23 to Bn
2023-25. A few of the capital projects costs were not as high as we estimated they
would be during the budget process. The projects are still on track for overall project
cost, the timing of when the expenditures are happening has changed. Because of this
the fund started the biennium with a larger beginning balance than was budgeted. Now
we are basically rolling over those appropriations into to current biennium from the
previous. The expenditures pertain to the Willamette Greenway and Golf Course
projects.
The same rollover of appropriation is needed for both the Stormwater and Street Funds.
The expenditures originally estimated to happen in Bn 2021-23 are now happening in Bn
2023-25. The Stormwater Fund projects are specifically the Daniel Way, Lake View
Boulevard, and the Blue Heron Outfall projects. The North Shore Bridge, Lake View
Boulevard, and the'22 Pathway Program projects are the projects for the Street Fund.
• The SDC Fund needs an adjustment related to the Jean Road Signal project. The scope
of the project has increased requiring additional funding. The additional amount will
come from both a larger beginning balance than originally budgeted and a small amount
from the Fund's contingency.
• The Water Fund is requiring an adjustment to continue the Automated Meter
Infrastructure (AMI) project. The City has been working on the residential meters for
the past few years. With this phase of the project nearing completion early than
originally budgeted, it is time to transition to the commercial meters. This adjustment
covers the cost of purchasing all the meters and the labor to have them installed. It is
coming from a larger beginning balance than originally budgeted due to savings and
higher summer revenues due to a dry summer in fiscal year 2022-23.
FISCAL IMPACT
The fiscal impact is described in detail on the resolution itself.
RECOMMENDATION
Adopt Resolution 24-07
ATTACHMENTS
1. Resolution 24-07
Respect, Excel'ence. Trust. Service.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
ATTACHMENT 1
RESOLUTION 24-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ADJUSTING THE
BUDGET FOR THE BIENNIUM COMMENCING JULY 1,2023 BY ADOPTING A SUPPLEMENTAL
BUDGET,APPROVING RESOURCES/REQUIREMENTS,AND MAKING APPROPRIATIONS.
WHEREAS, Certain conditions and situations have arisen since the initial
preparation of the 2023-25 budget and necessitate changes in financial planning, now,therefore,
BE IT RESOLVED by the City Council of the City of Lake Oswego that:
Section 1. The City Council hereby adjusts the budget for biennium 2023-25 in the amount of$6,187,000.
Section 2. The City Council hereby authorizes:
A) The appropriation of resources and approval of requirements listed below;
B) The transfers of funds and transfers of fund appropriations as listed herein;
Parks Bond Fund Adopted Revised Difference
Resources:
Beginning Balance $ 9,426,781 $ 10,659,781 $ 1,233,000
Requirements:
Parks Bond Department $ 2,440,000 $ 3,673,000 $ 1,233,000
$ 1,233,000
Explanation of Major Changes:
To roll over expenditure appropriation from the prior biennium for the Willamette Greenway and Golf
Course projects.
Water Fund _ Adopted Revised Difference
Requirements:
Water Department $ 29,264,000 $ 31,309,000 $ 2,045,000
Contingency 3,608,068 1,563,068 (2,045,000)
$Explanation of Major Changes:
For the purchase and installation of the commercial AMI meters.
Stormwater Fund Adopted Revised Difference
Resources:
$ 3,863,521 $ 5,063,521 $ 1,200,000
Requirements:
Stormwater Department $ 10,295,000 $ 11,495,000 $ 1,200,000
Explanation of Major Changes:
To roll over expenditure appropriation from the prior biennium for the Daniel Way, Lake View Blvd, and
Blue Heron Outfall projects.
Resolution#24-07 Page 1 of 2
Street Fund Adopted Revised Difference
Resources:
Beginning Balance $ 10,056,670 $ 12,681,670 $ 2,625,000
Requirements:
Street Department $ 25,294,000 $ 27,919,000 $ 2,625,000
Explanation of Major Changes:
To roll over expenditure appropriation from the prior biennium for the North Shore Bridege, Lake View
Blvd, and '22 Pathway Program projects.
System Development Charges Fund Adopted Revised Difference
Resources:
Beginning Balance $ 18,954,849 $ 20,083,849 $ 1,129,000
Requirements:
System Development Charges Dept $ 9,200,000 $ 10,700,000 $ 1,500,000
Contingency 12,600,849 12,229,849 (371,000)
$ 1,129,000
Explanation of Major Changes:
To cover the costs for the increase in scope for the Jean Road Signal project.
Considered and enacted at a regular meeting of the City Council held on the 20th day of February, 2024.
AYES:
NOES:
ABSTAIN:
ABSENT:
Joseph M. Buck, Mayor
ATTEST:
Kari Linder, City Recorder
APPROVED AS TO FORM:
Ellen Osoinach, City Attorney
Resolution#24-07 Page 2 of 2