HomeMy WebLinkAbout2003 07 28 Consent B Utility Fund Balance for Utility Billing Department Postage Expense
COMMISSION AGENDA
ITEM
B
CONSENT X
INFORMA TIONAL
PUBLIC HEARING
REGULAR
July 28, 2003
Meeting
MGR {l/IDEPT '---j-J
Authorization
REQUEST: Finance Department Requesting a Supplemental Appropriation of $9,000 from
the Utility Fund Fund Balance for Utility Billing Department Postage Expense.
PURPOSE: The purpose of this item is to supplement the Utility Billing Department's budgeted
postage expense as it is projected to be short by about $9,000 through the end of the
fiscal year.
CONSIDERATIONS:
· Additional funds are needed to cover the costs for bulk mailing of the utility bills and
delinquent postcards as the amount currently budgeted in FY 03 does not adequately cover
projected costs through the end of the year.
. Budget short due to a greater than anticipated increase in the utility bill volume over prior year
and the continual high volume of late notices that are required to be produced.
. Projected Annual Cost:
. Utility bills average 2,900 units at an average cost of $81 0 per run - est $40k
· Late notices average 500 units at an average cost of $88 per run - est $5k
. Collection notices and general mailings - est $1.5k
. As a note the City previously spent $50,000 in Utility Billing postage in FY 00 - prior to the
City obtaining a bulk mailing rate (reduced rate) due to the implementation of special postal
software in connection with the computer conversion. Three years later our amended Utility
Billing postal budget of $46,500 will still be less than FY 00 even though we have had a
volume increase and have introduced late notices over the past three years.
FUNDING:
A supplemental appropriation from the Utility Fund's fund balance in the amount of$9,000 to be
reflected as an increase in the Utility Fund's Reimbursement to the General Fund for Utility Billing.
The General Fund will reflect a Transfer in from the Utility Fund for Utility Billing and an increase in
postage Expense in the General Funds - Utility Billing Department.
Current Budget
Supplemental
Amended Budget
$37,500
$ 9,000
$46,500
RECOMMENDATION:
The Finance Department recommends the City Commission appropriate $9,000 from the Utility
Fund's Fund Balance to cover projected postal expense in the Utility Billing Department.
COMMISSION ACTION: