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HomeMy WebLinkAbout012-05RESOLUTION NO. 12-2005 APPROVING THE MID-YEAR ADJUSTMENTS TO THE FISCAL YEAR 2004-05 FINANCIAL PLAN WHEREAS, all revenue anal expenditure projections, which were made in preparing the Fiscal Year 2004-05 Financial Plan have been reviewed; and WHEREAS, the State is requiring $469,575 from the Town as a local contribution to help balance the state budget according to ProplA; and WHEREAS, the state has reduced the MVL fee from 2% to .65%and is required to backfill the resulting reduction in local revenues; and WHEREAS, the state has shifted .25% of local saleS tax revenues to the state and is required to backfill the resulting reduction in local revenues; and WHEREAS, the following mid-year adjustments to the General Fund 2004-05 Financial Plan are recommended to reflect state raids and backfills of local revenues and reduce revenue projections and appropriate designated funds for current year operational activities to continue balancing expenditures with 'available revenues and reserves: · A reduction of $469,575 in property tax revenues as the local contribution to the state to assist in closing the FY 04-05 state budget gap; · An increase of $2,407,675 in Property Tax MVL Backfill to recognize the state's backfilling of rescinded MVL fees due to the Town; · An increase of $928,218 in "Property Tax .25% Sales Tax Offset (Prop. 57)" to recognize the state's backfilling of the .25% property tax shift from local governments to the state; · A net decrease in sales tax revenue of $355,745, Comprised of a decrease of $928,218 shifted from local governments to the state offset by an increase of $572,473 based on year-to-date trends which are exceeding the artificially!ow sales tax number which was used in the budget as a means of planning for anticipated State takeaways; A net reduction of $2,238,191 in Motor Vehicle License fees, comprised of a decrease of $2,407,675 shifted from local governments to the state, offset by an increase of $169,484 based on year-to-date trends; · A reduction in Park and Recreation Fees and Rent of $110,000 to remove duplicate budget entry of Sports Alliance fees. · An increase of $17,545 in Booking Fee Reimbursements from the state; · An appropriation of $150,000 from the Compensated Absences reserve to fund additional-employee leave during fiscal year 2004-05. · An appropriation of $25,000 from the Finance/Accounting software reserve to the Finance Department program budget to fund the consultant costs associated with acquisition of new software; WHEREAS, sufficient funding is available in the General fund; now, therefore, be it RESOLVED, that the Danville Town Council approves the mid-year adjustments to the Fiscal Year 2004-05 Financial Plan. APPROVED, by the Danville Town Council at a regular meeting held on February 15, 2005, by the following vote: AYES: Doyle, NOES: None ABSTAINED: None ABSENT: None Stepper, Andersen, Arnerich, Shimansky APPROVED AS TO FORM: CITY ATTORNEY (._ATT~EZ/,~ ~i~¥CLE~RK PAGE 2 OF RESOLUTION NO. 12-2005