Finance Committee Agenda and Packet 2017 10 16

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SUBJECT: DATE: BUDGET AMENDMENT & PROCESS DISCUSSION OCTOBER 16, 2017 PAGE2OF2 The obvious disadvantage is that the current year budget ceases to be a relevant financial projection tool once the next year's budget process starts. This proposal also extends to the 2018 Recommended Budget. Staff proposes that if a project is known to extend to a year beyond its appropriation, and that knowledge occurs during the next year's budget process, the "carry -forward" adjustment will be included in the next year's budget at the time of initial adoption. For example, note the Miner's Field Park Improvement Project in Exhibit 2 (page one, line seven). The 2017 Budget is $35,000. However, staff is confident that not more than $25,000 will be spent on the project during 2017, but the total project estimate is still $35,000, with $10,000 estimated to be spent in 2018. Under this proposal, the current year budget of $35,000 will not be reduced. Instead, the new estimate of $25,000 will be reflected in the 2017 Estimate column, which will adjust the estimated Open Space & Parks Fund balance at December 31, 2017. In addition, the $10,000 will be included in the initial 2018 Budget, which prevents the need for a "carry -forward" amendment next Spring. The final attachment (Exhibit 3) is an adjusted 2017 Budget Amendment Worksheet assuming implementation of staff's proposal. Note that the only capital projects proposed for a budget reduction are the two Wayfinding projects, which have been eliminated to help fund the Recreation Center project shortfall. CITY COUNCIL COMMUNICATION 17