Transfers account for staff adjustments and skate park payments

by: FILE PHOTO - As the Scappoose skatepark was completed in early September of 2013, rather than its initial proposed completion deadline in May of 2013, the city paid the parks contractors out of the current budget. Since the city intended to pay the contractor with funds from the prior fiscal year, it must now transfer money from various departments to cover the unexpected costs to the current budget. The city of Scappoose will be rearranging a total of $114,100 within its budget as a result of unexpected costs attached to the negotiated termination of its former city manager as well as costs carried over from the previous fiscal year to fund the city’s new skate park.

The Scappoose City Council on Tuesday, Feb. 18, voted unanimously to adopt a resolution to transfer funds within the 2013-2014 fiscal year budget. The adopted resolution will reduce the city’s general fund contingency by $99,100 and reduce the city’s street fund contingency by $15,000.

The Parks Department contingency fund will receive $67,100 of the general fund contingency transfer since the skate park contractor, Grindline, did not finish construction of the park until after the end of the fiscal year last June. The city didn’t pay Grindline until this fiscal year, thereby taking the funds from its current budget.

“In parks, they anticipated the skate park would be done and paid for [last fiscal year], so they hadn’t budgeted to pay anything on it this year,” said interim City Manager Don Otterman.

The other departments receiving money from the general fund contingency are tied to personnel services in Administration and Planning departments, which fund the city manager position. The transfer of $47,000 to those areas is needed because of a more than $110,000 severance payout for the negotiated termination of former City Manager Jon Hanken as well as to cover Otterman’s monthly salary.

The transfer from the general fund contingency will increase the Administration Department’s personnel services budget by $25,000 and the Planning Department’s personnel services budget by $7,000.

A transfer from the street fund contingency will go directly to the city’s street fund personnel services, increasing that fund by $15,000.

Otterman said the city manager salary is divided up amongst various funds and the transfers are being made to cover the cost of his part-time work as well as Hanken’s sererance.

There was no discussion among councilors about the resolution prior to its adoption.

Oregon budget law allows for public agencies to make adjustments to their budgets when conditions arise that were not anticipated at the time of the budget’s initial preparation and adoption.

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