Date: September 3, 2008
To: RCPL Board of Trustees
From: G. Chapman
Re: August 2008 Budget Narrative
Date: September 3, 2008
To: Terri Davis, Public Services Manager
From:
Re: August 2008 Budget Narrative
At the end of August there should be 33.6% remaining in each budget. There is currently 33.6% remaining of the City budget, 37.4% remaining of the County budget and 68.3% remaining in the Board Funds budget for 2008.
IFAS reports include year to date expenditures and encumbrances. The remaining budget balance and percent budget remaining reflect all outstanding purchase orders which are planned expenditures. Percentages listed in this narrative reflect percentages based on the total year to date expenses compared to our current working budget.
The following is a list of line items of interest for each budget:
I. City Budget –
The total budget is
on track for the year. Projections have
been done for the remaining
costs for
the fiscal year. Those projections show
that the budget will cover those costs, but will not leave room for end of year
priorities; However, it has been projected that we will be able to return a
percentage to the general fund.
- 4111 – Overtime Wages - -137.02% - This is due to additional
facilities staff time needed for cleaning the building and additional business
office staff time during vacancy of Accounting Clerk I.
- 4118 – Temporary Wages – -96.47% -
Due to vacancies temporary wages have been overspent. Temporary
wages are not greater than the vacancy savings in Salary and Wages line
item, so the two will balance at the end of the year.
- 4300 – Capital Outlay (General Materials) – 3.2% remaining – This percentage is not an accurate reflection of the
remaining amount. Invoices for an
SDLN payment and processing fees were mistakenly coded from the materials
line item. A letter of correction has been sent to finance to request it
to be changed to the correct line item.
With the amounts unspent for SDLN and the processing fees, the
funds actually available for materials is 10%, on par with what is
expected at this time of the year since purchasing for General Materials
ends in October.
II. County Budget
No new items for review.
III. Board Funds Budget
No new items for review. Planned space use projects will expend additional funds near the end of the year.
IV. Previously Discussed City Budget Items
·
4210 – Insurance – 49.12% remaining
o
These
are fixed costs and we are on track for the year.
·
4220 – Professional Services – 82% remaining
o
The
expenditures in this line item are high due to the first quarterly payment made
to the South Dakota Library Network. We
are on track for expenditures in this line item for the year.
·
4230 – Publishing – 0% remaining
o
Due to
vacancies related to the county contract, two employees transferred to city
openings during negotiations, advertising for those vacancies have used funds
from this line item.
o
Due to
the higher staff vacancies for the year, expenses in this line item have been
greater than planned. We will continue
to have costs in this line item as the year progresses and will adjust
expenditures in other line items to account for the cost through the end of
year budgeting process.
·
4240 –
Rentals – 84% remaining
o
Maintenance
and service contracts approved shall renew at the beginning of each calendar
year thus increasing the expenditures in this line item at this time.
·
4250 – Repair & Maintenance – 51% remaining
o
Johnson
Repair maintenance contract has been signed as we have a January to December
agreement. Also, the 3M Self Check
Machine contract came out of this line item as a clerical error. The funds will be supplemented back into the
appropriate line item by city finance.
o
Expenditures
in the 4252 Repair Structures and 4253 Repair Equipment were higher than
anticipated for the year to date due to painting and the air handler. The air
handler required new tight seal dampers which were planned expenditures.
However we were also required us to purchase new actuators, which was new
information for us. Additionally, the
full service contract with Johnson Controls was re-instated for cost
efficiencies after the 2008 budget cycle was approved. There was also a
clerical error which deducted funds in the amount of $16,500 from the 4253 line
item for the 3M contract. The $16,500 will be available from the line item that
3M contract was intended to come from for ongoing maintenance expenses for the
remainder of the year. The remaining balance for facilities expenditures is
$24,000 which we anticipate to cover expenses for the remainder of the
year.
- 4270 –
Travel & Training – 69.81%
remaining
- The costs for this line item are high
due to conference travel and training for the staff and Board. However,
because expenses for this line item have been budgeted for the entire
year, expenditures are on track.
·
4290 – Miscellaneous – 59.21% remaining
o
The
expenditures out of this line item include Dues, Other Miscellaneous Expenses,
Computers and Software, and Office Equipment.
We have spent $205 out of $1,000 for dues for the year, which are
planned expenditures and are on track for the year. Other Miscellaneous Expenses are overspent by
approximately $2,000 due to increased expenditures for expanded youth
programming. Computers and Software are also overspent
by approximately $7,900 partially due to the purchase of CybraryN Software for
RCPL North which allows for public log-ins for computer use, and also due to
the purchase of planned computers and software earlier in the year than
expected. These purchases will also
decrease within the next couple of months and the percentage spent will be on
track within that same time frame. Office Equipment expenses are on track for
the year.
·
4300 – Capital Outlay – 50.93% remaining
o
Expenses
out of this line item that are over expended for the year include line item
4320 Buildings and Structures. Buildings
and Structures are over expended due to an accounting error. $8,000 was budgeted for the new facility
vehicle for 2008 out of line item 4350 Furniture and Minor Equipment, however,
per City Finance and Chart of Accounts all vehicle purchases are to come out of
4360 Auto and Equipment. Finance will
make a correction to move the purchase from 4320 Buildings and Structures to
4360 Auto and Equipment. There was no money budgeted in this line item, however
will be offset by the $8,000 budgeted in 4350 Furniture and Minor
Equipment.
·
4341 - General Materials – 39% remaining
o
Due to
the purchasing year ending in October, General Materials may be spent at a
higher pace than the other expenditures.
We should be at 40% remaining with 10% of the budget being spent per
month. The encumbrance amount has not
yet been paid to the vendors thus leaving a more accurate percentage of 39%
remaining which is on track for the year.
V. Previously Discussed County Budget Items
- 4240 –
Rentals – 59.94% remaining
- The expenditures out of this line item include
Lease/Purchases and Other Rentals.
We have spent $931 out of $1,875 for Lease/Purchases for the year,
which are planned expenditures.
These expenses are greater at the beginning of the year, and will
correct during the course of the rest of the year. Other Rentals expenses are on track for
the year.
- 4250 –
Repair & Maintenance – 0%
remaining
- The expenditures out of this line item have been
expended fully for the year. All
remaining expenditures will be taken out of the city budget.
- 4260 –
Supplies & Materials – 59.34%
remaining
- This line item is over-expended for the year for
line item 4264 Janitor and Chemical Supplies; more expenses for this line
item have been allocated to the county budget than the city budget. This will be more evenly distributed
between the city and county budgets in the future.
- 4270 –
Travel & Training – 31.75%
remaining
- The costs for this line item are high due to
conference travel and training for the staff and Board. However, because
expenses for this line item have been budgeted for the entire year,
expenditures are on track.
- 4280 –
Utilities – 2.61% remaining
- The
county funds for telephone services have been expended for the year. Any additional monthly telephone
service costs will be expended from the city budget.
- 4290 –
Miscellaneous – 35.8% remaining
- The funds for computers and software have been
completely expended from the county budget. There will be no additional
expenditures out of this line item for the remainder of the year.
- 4341 –
General Materials – 41% remaining
- Due to the purchasing year ending in October,
General Materials may be spent at a higher pace than the other
expenditures. We should be at 40%
remaining with 10% of the budget being spent per month. The encumbrance amount has not yet been
paid to the vendors thus leaving a more accurate percentage of 41%
remaining which is on track for the year.
VI.
Previously
Discussed Board Funds Budget Items
- 4250 –
Repair & Maintenance – -19.52%
remaining
- Due to clerical error, the expenditures out of
this line item have been over expended for the year. All remaining expenditures will be
taken out of the city budget.
- 4260 –
Supplies & Materials – 32.56%
remaining
- Due to clerical error expenditures were taken
out of the 4264 Janitorial & Chemical line item which was not
budgeted for. All remaining
expenditures will be taken out of the city or county budgets.
EQUAL
OPPORTUNITY EMPLOYER