HomeMy WebLinkAboutStaff Report 306-08
CMR:306:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: JULY 15, 2008 CMR: 306:08
SUBJECT: REQUEST TO PRELIMINARILY APPROVE 2007-08
REAPPROPRIATIONS REQUESTS
RECOMMENDATION
Staff recommends that the Finance Committee recommend that Council preliminarily approve
the FY 2007-08 reappropriations (Attachment A).
BACKGROUND
As a part of the year-end financial process, department staff works with the Administrative
Services Department (ASD) to review outstanding financial obligations. In the course of regular
operations, items can span two fiscal years in the processing—planning in one fiscal year and
actual payment in the next. This necessitates carrying forward both encumbered and budgeted
amounts. Council approves these carry-forward items in the year-end closing ordinance once the
accounting books are closed. Staff utilizes the reappropriation process if base funding in the
following fiscal year cannot accommodate the expense.
In 1995, the Fiscal Procedures Chapter of the Municipal Code (Chapter 2.28, Section 2.28.090)
governing reappropriations was amended to allow Council to preliminarily authorize
reappropriations of non-capital budgets at the beginning of the fiscal year with final
authorization to be made at the time of adoption of the budget closing ordinance. The purpose of
this was to ease difficulties experienced by the departments caused by the delayed, final approval
of the reappropriations where the reappropriation was justified and sufficient funds from the
prior year were clearly available. Preliminary approval allows the department to continue with
normal operations and spend the funds as of the Council’s preliminary approval date rather than
the year-end ordinance approval date.
DISCUSSION
With the implementation of SAP, there is an opportunity to take advantage of system efficiencies
by allowing the system to automatically post the previous year’s reappropriations with other
encumbered, carry-forward funds as of the beginning of the new fiscal year. As noted above, the
Municipal Code allows the “preliminary” approval of reappropriations as long as final approval
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is included with the normal year-end closing ordinance. The preliminary reappropriation action
allows for an early review of uncommitted funds in a just-concluded fiscal year. Attachment A
identifies those reappropriation requests that ASD recommends for preliminary approval.
RESOURCE IMPACT
Staff has determined that sufficient uncommitted budgeted funds exist to allow for the
preliminary approval of the attached 2007-08 reappropriations list (Attachment A). General
Fund proposed reappropriations total $647,719.
POLICY IMPLICATIONS
This recommendation is consistent with adopted Council policy.
ENVIRONMENTAL REVIEW
The action recommended is not a project under Section 21065 for the purposes of the California
Environmental Quality Act.
PREPARED BY:
DALE WONG
Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
LALO PEREZ
Director, Administrative Services
CITY MANAGER APPROVAL:
STEVE EMSLIE and KELLY MORARIU
Deputy City Managers
ATTACHMENT
Attachment A: 2007-08 Reappropriations List