The Hermiston City Council adopted a supplemental budget Monday night which increases the city’s 2013-14 budget by $894,350, or 1.8%.
The city makes supplements to the budget every year to accommodate for increases in expenses or revenue which weren’t anticipated before the original document was adopted.
Among the changes to the budget was an increase to the general fund by $38,000 and an increase to the Transient Room Tax Fund of $37,500. The supplemental budget also adjusts the city’s Miscellaneous Special Revenue Fund by $122,500. Those adjustments include transferring $9,969 to the Reserve Fund for future capital improvements to the Hermiston Conference Center; $87,181 to the Reserve Fund for office and computer equipment; $20,350 to the Reserve Fund for permitting software for the Building Department; and $5,000 to remit surcharges on construction permits to the state.
Several large projects which are included in the supplement are the result of grant revenue. The city of Hermiston does not budget for anticipated grant revenue until it is actually awarded. Several supplements had to be made to cover the costs of the Oxbow Trail project, which received a $135,000 grant from the state, and $20,000 in donations. The Federal Aviation Administration also awarded a $270,000 grant to the city for its fencing project at the airport.
The city’s regional water system is incurring higher electricity costs than originally anticipated, so the supplemental budget adds $75,000 to its budget. Revenues from its services, however, is expected to cover the higher costs.
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