Supplemental budget to go before Council on Oct. 28

The budget is our best estimate of what the future is likely to hold, but undoubtedly, routine changes are needed over the course of the year. In fact, when the budget is adopted in June, some of the data is already several months old.

Consequently, Oregon Budget Law provides for changes to adopted budgets through a supplemental budget process that requires that the City provide public notice of the proposed changes and, if the change is greater than 10 percent of any funds total expenditures, hold a public hearing to discuss the proposed changes.

Like the adopted budget, supplemental budget requests must be balanced; in other words, net revenue and net expense for the request must be equal. Oregon law requires all local government to operate under balanced budgets.

Here’s a look at our adjustments to the proposed mid-year supplemental budget:

Police Radios

The Woodburn Police Department is need of upgrading our public safety radio system because in January 2013 the Federal Communications Commission (FCC) required all VHF and UHF radio frequency licensees to move to “Narrowband” radio channels and this has caused system problems.  The cost of upgrading the system will total $31,000.

 

Ford Foundation

The City has agreed to be the fiscal agent for the latest Ford Foundation project. The City will receive and hold some $20,000 in grant funds raised by the local leadership group. Expenditures will be strictly limited to the revenue received, so the overall financial impact to the City is zero.

 

Legion Park Project

Now that the City has received a grant award and Council consent to commence an improvement project for Legion Park, the grant revenue and project expenditures must be budgeted. The total project is estimated to cost $462,800, with $277,800 coming from the grant award and the balance from Parks system development charges (SDC).

 

City Hall Roof Repair

The roof at City Hall has had numerous repairs and fixes over the years to extend its life and defer the necessity for major repair and or replacement. We had already budgeted for a repair to the sally port, but damage to the central portion of the roof and skylights necessitate additional repair. Public Works estimates an additional $17,000 is necessary.

 

WPA Personal Services Costs

Recently, the City resolved an outstanding collective bargaining issue regarding compensation in the amount of $16,000.

 

Pension Plan

Our legacy pension plan is underfunded by approximately $170,000. Because it is prudent to assume that the funds will be necessary in the near future, staff is recommending that we bring the funding status current so that any potential retirement does not represent a budget timing problem. Future contributions, if necessary, will be funded through the normal budget cycle.

 

Previously Authorized Capital Projects

Our Finance Department revealed that the Parks SDC fund was owed a refund on a few projects and the General Fund was undercharged on a few projects. To correct these, Finance is proposing a transfer in from the General Fund of $89,000, and a transfer out to Parks SDC of $89,000.

 

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