Memorandum
To: Ben Barnes, Director of Administration
From: Peter Privitera, OPM Director
Date: January 30, 2006
Re: FY 2005-06 Second Qtr. Fiscal Projection
Attached for your review is a summary of revenue and expenditure projections for the current fiscal
year based on two quarters of actual data. I am pleased to report that the projection indicates a
positive budget variance of $412,661 which represents .0001% of total projected expenditures.
The following analysis compares the second quarter projection to the revised budget. The significant
difference between the original department budgets and the revised department budgets are additional
appropriations from the Contingency account and encumbrance rollovers. As you will see in the
attached analysis, the encumbrance rollovers are added to operating budgets at the beginning of the
fiscal year and eventually deleted at the end of the fiscal year. Therefore, the comparison from the
second quarter projection to the revised budget identifies only the changes that have taken place or
are anticipated that were not part of the FY 05-06 Approved Budget.
The following identify significant expenditure and revenue account projection adjustments. Please
note that in some departments a significant portion of the projected overage is due to payroll
adjustments due to contract settlements as of June 30, 2005. Also, this projection includes an
assumption that the UAW and Fire contracts will be approved. If these contracts are rejected, the
value of the contracts included in the department projections will be shifted to the Contingency
projection. The result will not change the city-wide bottom line expenditure projection.
EXPENDITURE VARIANCES
Office of Administration: $195,007:
The projected increase over the revised budget is primarily due to actual and projected contract
settlements and transfers associated with consolidation of GIS services in Technology Management
Services (TMS). Transfers include staff and supplies from Land Use and Housing Safety & Zoning
Code Enforcement. In addition, minor operational adjustments are also identified.
Office of Operations: $2,444,021:
This increase over the revised budget is due to adjustments made to fuel and utility accounts to reflect
increasing prices ($602K), adjustments for labor contract settlements ($814K), projected operational
overtime increases related to recent storms and projections necessary to maintain current levels of
service to the community ($518K), projected expenses related to the rental of a bulky waste shredder
and screener pending delivery of purchased equipment and increases related to disposal of leaves
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($267K), expenses associated with outside contractors hired to remove downed trees during storm
events and related staff overtime(128K) and various operational adjustments.
Office of Public Safety, Health and Welfare: $1,614,655:
This increase is primarily related to net overtime increases (net of payroll/other payroll account
savings) for Police ($366K), wage increase for School Crossing Guards (79K) Emergency
Communications projected contract settlement and contract amendment for Public Safety Dispatch
personnel (396K), Volunteer Firefighting overtime adjustments (130K) and projected contract
settlement and overtime adjustment for Stamford Fire and Rescue, net of any operational savings
(582K). Projected utility increases for all public safety ($141K) and projected expenses related to dog
maintenance ($25K) also impact the projected shortfall. Also included in the projections are various
reductions to operational accounts.
Office of Legal Affairs: $(32,637):
This projected savings is primarily due to the anticipated transfer of wage increases related to non-
union contract employees from a wage settlement account to various department payroll accounts.
Government Services: $82,375:
The increase over the approved budget is primarily due to payroll base adjustments as a result of prior
year contract settlements and anticipated contract settlements and projected election expenses
associated with a potential March primary.
Community Grants: $0:
No change is projected in this area.
Debt Service: $0:
No change is projected in this area.
Contingency: $2,845,817:
For the current fiscal year, two types of contingency accounts are available for Board(s) action. The
first account is an expenditure contingency of $410,000. This account was set aside for any
miscellaneous unforeseen operational expense concerns. The second account is the revenue reserve
for contingency. This is expected to generate $4,838,388 of additional revenue which will be set aside
primarily for wage settlements. For ease of reporting, this analysis combines both accounts into one
“Contingency” account with a total of $5,248,388.
The projected Contingency requirements of $2.8 million include estimated contract settlements,
unanticipated events such as snow or wind related emergencies, unanticipated election primaries and
funds to offset a possible shortfall in the Smith House operation.
REVENUE VARIANCES
Property Taxes Total: $5,198,388:
The projected increase over the revised budget is based on an increase of $360K in the overpayments
account and an assumed collection of the $4.8 million revenue reserve for contingency. All other
property tax categories are projected to stay at adopted levels.
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Revenue From Use of Money: $1,250,000:
Interest income is projected to increase as a result of recent favorable short term investment interest
rates.
Intergovernmental Revenue: $312,346:
The increase is related to adjustments made to State formula grants based on the State of Connecticut
adopted budget.
Departmental Revenue: $472,968:
The projected increase is based on two primary adjustments; $200K in Conveyance Tax and $350K
in Building Permits. The balance of the adjustments are spread out over a number of accounts
Other Revenue: $374,560:
This increase is primarily related to an increase for the Enterprise Zone Reimbursement program
which accounted for $339,807 of the total increase.
Inter-fund Transfers: $(46,363):
The projected shortfall is based on a reduction in the Police Extra Duty reimbursement and a slight
decrease to the transfer from the Parking fund which is partially offset by an increase in the Town
Aid Road appropriation by the State.
Please let me know if you require any additional information on any of the projections.
Cc: Mayor Malloy
Board of Finance Members
Board of Representatives Fiscal Committee Members
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