AN ORDINANCE OF THE HOMER CITY COUNCIL AMENDING THE FY 2005 BUDGET BY AUTHORIZING THE TRANSFER OF $81,482.69 FROM PUBLIC WORKS ADMINISTRATION TO PUBLIC WORKS RESERVES FOR THE POLE BARN CONSTRUCTION AND AMENDING THE POLE BARN CONSTRUCTION BUDGET ACCORDINGLY.

WHEREAS, Constructing a new pole barn to protect the City's heavy equipment from the weather has been an administration priority for may years; and

WHEREAS, The Homer City Council appropriated $100,000.00 in FY 2005 for construction of a new pole barn at the Public Works complex; and

WHEREAS, The administration determined early in the construction phase that it would not be able to build the pole barn within the appropriated budget because the cost of materials was escalating rapidly and the engineering and pile driving costs exceed the estimates in the proposed budget; and

WHEREAS, The administration determined that it would only be able to complete construction and stay close to the approved budget if it used "in-house labor"; and

WHEREAS, The Council was informed that it was the City's intent to use "in-house labor" in order to keep costs down and that City workers would only work on this project as time allowed and when it did not interfere with the performance of basic duties; and

WHEREAS, The FY 2005 Unaudited Year End Financial Report revealed that the pole barn project expenses exceed the approved budget by $81,482.69; $52,000 of which were labor costs; and

WHEREAS, It was the intent of the administration to charge the labor costs of City employees to the approved FY 05 General Fund Budget in order to significantly reduce the amount of the project cost overrun; and

WHEREAS, The City auditors have advised the City that it would be better from both an accounting and auditing perspective to charge all project costs to the project account and transfer money in to cover the costs that exceed the approved budget; and

WHEREAS, The Finance Department and the Auditors decided to make this one simple and to not transfer money from the 2005 unspent balance from a bunch of different departments and to simply transfer from one account.

Page Two

Ordinance 06-27(S)

City of Homer

NOW, THEREFORE, the City of Homer Ordains:

Section 1. That the City Council hereby amends the FY 2005 Budget by authorizing the transfer of funds, from Public Works Administration in the amount of $81,482.69 to the Public Works Department Reserves for the Construction of the Pole Barn via Account, 156.395.4992 and amending that total budget from $100,000.00 to $181,482.69:

Account No. Description Amount

Transfer from

100.170.5990 Public Works Administration $ 81,842.69

Expense Acct.

156.395.4992 Public Works Department Reserves $81,482.69

Pole Barn Construction

Section 2. This ordinance is a budget amendment only, is not of a permanent nature and is a non code ordinance.

PASSED AND ENACTED by the Homer City Council this ____ day of ___________, 2006

CITY OF HOMER

_____________________________

ATTEST: JAMES C. HORNADAY, MAYOR

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Introduction:

Public Hearing:

Second Reading:

Effective Date:

Page Three

Ordinance 06-27(S)

City of Homer

Ayes:

Noes:

Abstain:

Absent:

Reviewed and approved as to form and content:

___________________________ ___________________________

Walt E. Wrede City Manager Gordon Tans, City Attorney

Date Date

Fiscal Note: Fiscal information included in body of Ordinance.