Minutes - 09/11/1995 Memo Adden
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MEMO
To:
From:
Subject:
Date:
Addendum to Council Meeting Minutes - Pg.4, 8/28/95
Dick Pugh
Tape Reading #0766, Bill 1664
September 11, 1995
Summarization of the tape reading did not clarify my objections to the bill and therefore I
will clarify in this memo.
The only restriction to borrowing the funds was the $850,000 over-all maximum. My
concern dealt with departments or funds eXDendinl! bevond their Deriod-to-date budl!et,
but not bevond their total budl!et.
Example:
Budl!et
Actual
Jan.
Feb.
Mar.
Apr.
May
June
Etc.
2500
2500
2500
2500
2500
2500
15000
2000
3500
3500
3000
Year/YTD 30000
12000
In the above illustration, only $10000 in funds should be available to pay the $12000 in
incurred expenses, since this fund is running $2000 over budget, YTD.
This is a very crude example to suggest we have more of a borrowing limitation than just
the $850000 fund maximum.
Most major corporations have eliminated inter-departmental borrowing and inter-
departmental charges as an un-necessary exercise. However; we are somewhat limited due
to fund accounting (municipal accounting) principles, but this matter could be addressed _
a later discussion.
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