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HomeMy WebLinkAboutFS 2009-04-07 Item 2D - Discussion - General Fund Contribution to Equipment Rental FundTO: FROM: Shawn Hunstock, Finance Directo DATE: April 1, 2009 SUBJECT: General Fund Contribution to Equipment Rental Fund ISSUE Given the current economic condition the City finds itself in, the administration is looking for ways to reduce the overall level of expenditures in the General Fund. One of the ideas being considered is not funding the equipment replacement contribution from the General Fund to the Equipment Rental Fund for 2009, which would save $464,964. This expenditure reduction would not affect the General Fund contribution to the Equipment Rental Fund for operations and maintenance, which totals $1,115,298 for 2009. BACKGROUND The Equipment Rental fund (501) ended 2007 with over $3.3 million in cash, $6.1 million in Net Assets and $3.4 million in unrestricted fund balance. Preliminary estimates for 2008 show revenue of $2.3 million and expenditures of $2.4 million, meaning the cash and fund balance did not change substantially during 2008. During the last five years, the Equipment Rental fund earned over $589,000 in investment income. DISCUSSION The attached Authorization for Transfer of Funds will move the budgeted equipment replacement contributions for the General Fund out of individual departments and into Department 20 to segregate the cost savings and prevent this amount from being spent. Budgeted revenue for the Equipment Rental Fund will not be adjusted at this time until it can be determined if this amendment is temporary or permanent. RECOMMENDATION The Council is being asked to approve the Authorization for Transfer of Funds and consider this item at the April 7, 2009 Finance and Safety Committee meeting, the April 13, 2009 Committee of the Whole meeting and subsequent April 20, 2009 Regular Meeting. ATTACHMENTS City of Tukwila Mayor Haggerton Rhonda Berry Finance and Safety Committee Authorization for Transfer of Funds form INFORMATIONAL MEMORANDUM Jim Haggerton, Mayor Department: Finance Department Date: April 1, 2009 Under the provisions of Ordinance No. 2221, the follozving transfer of funds within the budget class is requested: From: To: the City of Tukwila AUTHORIZATION FOR TRANSFER OF FUNDS Budget Line Item Number/ BAR 000.03.513.100.45.94 Mayor's Office 000.07.574.100.45.94 Parks Rec 000.07.574.200.45.94 000.08.558.100.45.94 DCD 000.08.558.600.45.94 000.10.521.100.45.94 Police 000.10.521.210.45.94 000.10.521.220.45.94 000.10.521.250.45.94 000.10.521.700.45.94 000.11.522.100.45.94 Fire 000.11.522.200.45.94 000.11.522.300.45.94 000.11.522.400.45.94 000.11.522.601.45.94 000.13.518.300.45.94 Public Works 000.13.532.100.45.94 000.13.532.101.45.94 000.13.532.200.45.94 000.15.576.800.45.94 Parks Maint. 000.16.543.300.45.94 Streets Div. Total Budget Line Item Number/ BAR 000.20.291.840.00.00 End Fund Balance Total APPROVED BY THE DEPARTMENT HEAD: Signature: APPROVED BY THE MAYOR: Signature: CO:ksn 4/1/2009 464,964 Detailed justification for transfer: Remove General Fund contribution for 2009 to the Eauipment Rental Fund. APPROVED BY THE TUKWILA CITY COUNCIL AT A MEETING THEREOF: day of 20 464,964 Date: Date: Amount 9,323 2,247 14,358 6,987 3,804 16,985 22,737 119,886 4,994 13,206 30,028 4,564 17,474 5,081 6,811 10,864 2,455 4,134 1,929 30,106 136,991 Amount 464,964