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RES 2001-2222 - Revise 2002 budget by decreasing reserve for variances in revenue estimates (not adopted) F NFa RECEIVED ECEIVED Finance Department o R `►;.M ��� Omaha/Douglas Civic Center �;� `� 1819 Farnam Street,Suite 1004 ►Ejc'? �� a SEP -4 PH 2� 56 ' Omaha,Nebraska 68183-1004 ° (402)444-5416 O° ry i' CLERK Telefax(402)444-5423 47:E1)FEB1° O M A H A, N E B R A S K A Stanley P.Timm City of Omaha Director Mike Fahey,Mayor Allen R.Herink Acting City Comptroller Honorable President and Members of the City Council, Attached is a Resolution that upon adoption would remove the account in the General Fund in the 2002 budget for the revenue overruns and potential unidentified revenue sources and the contingency appropriation account in the amount of$1,500,000. The process of including unidentified revenue sources to the General Fund budget was used effectively from the time the charter was established (1957) through 1979. The practice was stopped in 1980 due to the implementation of LB235; the first state mandated local budget limitation act. Since 1980 the City has been subject to some form of state budget limitation provision and the previous practice was never restarted. With a new city council and executive administration in place and the fact that for the first time in many years the City faces declining and stagnant revenue forecasts forcing budget cuts and layoffs the Finance Department believed the reintroduction of this previously accepted and adopted concept to be an action providing flexibility to the administration and city council during the budget year. While the $1.5 million reduces the amount the City is under the current state limitation, it is an insignificant factor given the size of the budget. This item was never intended to be part of budget adoption deliberations or a factor on either the revenue or expenditure sides of the budget. Within the past two weeks the Finance Depas linent has had discussions with several Councilmembers regarding this cushion in revenue estimates and how it would work once the budget is adopted. Since the item seems to be obstructing the budget process and generally misunderstood, we recommend the Council remove the item from the budget altogether in order to clear up the confusion. In trying to be innovative and forward thinking we have created a situation troublesome to the budget process. Please accept our apologies. Sincerely, Approved: Stanley P. Ti m Date ayor'g'Office ate Finance Director P:\PW 1\6163pjm.doc c- A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebr RESOLVED BY THE CITY COUNCIL OF THE CITY.OF OMAHA: WHEREAS, Section 5.06 of the Home Rule Charter of the City of Omaha, 1956,as amended, provides that after a public hearing on the Budget, the City Council may revise revenue estimates if such revision is concurred in by five of its members; and, WHEREAS, Section 5.06 of the Home Rule Charter of the City of Omaha, 1956,as amended, provides that after a public hearing on the Budget, the City Council may revise the appropriations of the Budget by increasing, decreasing, inserting or deleting appropriated items, except that it shall not reduce appropriations for debt service; and, WHEREAS, it is the intent of the Administration to make revisions to revenue estimates and appropriations in the Recommended 2002 Budget of the City of Omaha,Nebraska,by increasing,decreasing,inserting or deleting items in certain budgetary accounts which are funded by various City Funds. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT,the appropriations in the Recommended 2002 Budget be revised by increasing and decreasing revenue estimates and increasing, decreasing and inserting appropriations as indicated in the schedule below: Account Increase Budgetary Accounts Number (Decrease) General Fund: Revenue Estimates: Reserve for Variance in Revenue Estimates 1050 ($1,500,000) Total General Fund Revenue Adjustments ($1,500,000) Appropriation Adjustments: Contingency Reserve 1945 ($1,500,000) Total General Fund Appropriation Adjustments ($1,500,000) P:\FIN\12307z doc APPROVED S 0 /5/2/ CITY A TORdY DATE By im r /� � tutiniumik S 01 — bn Zo/Olctce. o.2 7Ve <Lr./yed 7—o City Clerk Approved Mayor • cn CD - o wo OA:•r-'CD c� O, --1 © IA �h`L -r I o1i11 0 Po CD cp k ,s \ a 1J O tc 0 0 N N n \ .r up tt 'C CD c i CD I