MEMORANDUM

TO: Ronald Drathman, President

THRU: Mike Navarre, Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: April 8, 1999

SUBJECT: Resolution 99-032 Approving the Transfer of $164,408 in Unencumbered School Insurance Appropriations to the Borough Maintenance Department

In fiscal year 1998-99, $881,749 was appropriated for school property and liability insurance within the borough school fund (241). Due to improving market conditions, substantial savings were realized when the coverage was put out for competitive. As a result, the original appropriation exceeded actual expenditures $164,408. This amount is unencumbered.

During the winter of 1998-99, the borough maintenance department, also in fund (241), has incurred costs of $167,795 over their available budget for snow removal and repair of frozen water and sewer lines. These extraordinary costs were the result of unusually heavy snowfall and low temperatures.

Section 5.04.100 (A) of the borough code provides that assembly by resolution may approve transfer of unencumbered balances between departments. The attached resolution will authorize transfer of unencumbered appropriations of $164,408 from the school insurance budget to the borough maintenance department budget. Both organizations are part of the borough school fund (241).

A memorandum from Dave Eagle, Maintenance Director, providing additional information along with a detailed listing of the unbudgeted expenditures is attached.