Reply to Common Council File No. 060987

From DOA-Budget and Management Division 
 

November 27, 2006 

Ref:  

Common Council File 060987 contains a resolution reserving $40,000 within the 2006 Common Council Contingent Fund for the Tuition Reimbursement Special Purpose Account in the event that the current amount budgeted is not sufficient to meet increased account expenditures.  

The Tuition Reimbursement Special Purpose Account was funded at $740,000 in 2006, and has experienced greater than anticipated costs from January through October of this year expending 97 percent of budgeted funds. Historically a small amount of expenditures are carried over from December to January of the following year. However, in 2005 an increased amount of expenditures were carried over and paid in 2006 contributing to the current account shortfall. In addition, anticipated usage of the Tuition Reimbursement benefit for 2006 is expected to be $803,000 exceeding current budgeted funds for the account. A contingency fund reserve amount will reduce the amount of rollover expenditures from 2006 to 2007 and should prevent additional account shortages in 2007. 
 

RECOMMENDATION: ADOPT COMMON COUNCIL FILE 060987 AND RESERVE $40,000 FROM THE 2006 COMMON COUNCIL CONTINGENT FUND FOR THE TUITION REIMBURSEMENT SPECIAL PURPOSE ACCOUNT IN THE EVENT THAT ADDITIONAL FUNDING IS WARRANTED. 
 
 

__________________________________________

Renee L. Joos 

Budget and Management Analyst 
 
 

RLJ:dmr 

FINANCE:060987.doc