HomeMy WebLinkAboutStaff Report 294-09TO:
ATTENTION:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER
JULY 21, 2009
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR: 294:09
Request to Preliminarily Approve Fiscal Year 2009 Reappropriations
Requests
RECOMMENDATION
Staff recommends that the Finance Committee recommend that the Council preliminarily
approve the Fiscal Year 2009 reappropriations (Attachment A).
BACKGROUND
As a part of the year-end process, staff reviews the City'S unencumbered and unspent
appropriations of the fiscal year just ended along with the City's spending plans. Encumbered
amounts are those subject to the legal claims of other parties due to contractual obligations (i.e.,
commitments made through purchase orders). The reappropriations process calls for
unencumbered and unspent amounts in one fiscal year to be carried forward into the following
fiscal year. Staff utilizes the reappropriation process if the adopted budget in the following fiscal
year cannot accommodate the expense. Council approves these reappropriations in the year-end
closing ordinance once the accounting books are closed.
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 in January. The
purpose of this was to ease difficulties experienced by the departments caused by the late, 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
As noted above, the Municipal Code allows the "preliminary" approval of reappropriations as
long as final approval 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
CMR:294:09 Page I 0[2
year. Attachment A identifies those reappropriation requests that staff recommends for
preliminary approval.
RESOURCE IMPACT
Staff has determined that sufficient uncommitted budgeted funds exist to allow for the
preliminary approval of the attached Fiscal Year 2009 reappropriations list (Attachment A).
General Fund proposed reappropriations total $2,264,907. Enterprise Fund proposed
reappropriations total $521,095. Internal Service Fund proposed reappropriations total $180,365.
POLICY IMPLICATIONS
This recommendation is consistent with adopted Council policy.
ENVIRONMENTAL REVIEW
The action recommended is not a project for the purposes of the California Environmental
Quality Act.
PREPARED BY:
Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
Director, Administrative Services
CITY MANAGER APPROVAL:
City
ATTACHMENT
Attachment A: Fiscal Year 2009 Reappropriations List
CMR:294:09 Page 2 of2
Attachment A
FY 2009 REAPPROPRIATION
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2009 STATUS
City Manager's Office
$111,500 Senior Games This reappropriation is being requested for a Recommended $111,500. There is
Sponsorship sponsorship agreement for the 2009 National sufficient balance in the Fiscal Year
Senior Games as approved by Council. When 2009 budget that can be
Council approved the agreement in March reappropriated.
2009, there was no appropriation of funds
associated with the approval. The FY 2010
City Manager's Office budget does not have
the funds to cover these one-time expenditures.
As such, a reappropriation of savings is being
requested from the FY 2009 budget to cover
expenditures associated with the 2009 Senior
Games to be held August 1-15, 2009.
Planning Department
$32,107 Comprehensi ve Plan This reappropriation is being requested for the Recommended $32,107. There is
Amendment Comprehensive Plan Amendment. This project sufficient balance in the Fiscal Year
was the result of a colleague's memo to update 2009 budget that can be
the Comprehensi ve Plan through 2020 to reappropriated.
identify future growth and ensure sufficient
services to serve existing and future needs and
address sustainability. The Comprehensive
Plan Amendment is a multi-year project and
this $32,107 budget balance needs to be
reappropriated into FY 2010 for the ongoing
project costs.
$17,500 Alternative Modes This reappropriation is being requested for the Recommended $17,500. There is
Program City'S Bicycle Transportation Plan input into sufficient balance in the Fiscal Year
the Comprehensive Plan. Due to workload 2009 budget that can be
issues, this project was not completed in FY reappropriated.
2009. This project will be implemented in the
Fall.
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$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2009 STATUS
$53,800 Study of parking This reappropriation is being requested for the Recommended $53,800. There is
permit program for study of a residential parking permit program sufficient balance in the Fiscal Year
College Terrace in College Terrace. On October 25,2001, as a 2009 budget that can be
condition of their General Use Permit with reappropriated.
Santa Clara, Stanford University paid $100,000
to the City for study of a residential parking
permit program in College Terrace. Funds
were held in a deposit account until they were
ready for use. At mid-year FY 2009, the City
Council authorized moving the funds into the
Transportation Section budget and proceeding
with the study. The $53,800 remaining is
reserved specifically for that project to
implement any recommendations adopted by
the City Council. Staff will obtain Council
approval of the program in July 2009, and
implementation of the project will then begin.
$50,000 Speed Surveys This reappropriation is being requested for the Recommended $50,000. There is
completion of speed surveys to justify radar sufficient balance in the Fiscal Year
enforcement on Palo Alto streets. The 2009 budget that can be
California Traffic Control Device Committee reappropriated.
sets the guidelines on how to perform the
survey analysis. Staff wanted to wait for their
decision so that the testing analysis would not
be obsolete. Staff will proceed with the speed
surveys because the California Traffic Control
Device Committee did not make a decision
until this Spring.
NOIl-Depaltmental
$2,000,000 City Manager Housing This reappropriation is being requested for the Recommended $2,000,000. There is
purchase of a home for the City Manager. The sufficient balance in the Fiscal Year
City Manager has found a home to purchase, 2009 budget that can be
but the funds are not necessary until FY 2010. reappropriated.
Utilities Department-Fiber Optics Fund
$11,000 Broadband Project This reappropriation is being requested for the Recommended $11,000. There is
development of a broadband project to attract sufficient balance in the Fiscal Year
federal stimulus funds. Council originally 2009 budget that can be
appropriated $300,000 to support negotiations reappropriated.
with a consortium of firms that intended to
bring fiber to the premises. The remaining
balance of $11,000 is needed in the next fiscal
year for technical assistance to pursue federal
stimulus funds.
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$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2009 STATUS
Public "W{u"k.) Stonn Drainage Fund
$510,095 Storm Drain Innovative This reappropriation is being requested for Recommended $510,095. There is
Improvements customer rebates for innovative storm drain sufficient balance in the Fiscal Year
projects. Annually since FY 2006, CIP SD-2009 budget that can be
06105 Storm Drain Innovative Improvements reappropriated.
has been funded for innovative storm drain
projects on public and private property.
Rebates are provided for projects that protect
storm water quality and reduce the quantity of
storm runoff. Funding has been more
appropriately moved from the capital budget to
the operating budget, and the remaining
balance needs to be reappropriated to provide
funding for future rebates along with those in
process.
f\dministrative Services Depllrtment-Technology FUlUi
$180,365 Application Software This reappropriation is being requested for Recommended $180,365. There is
Replacement application software replacement. With the sufficient balance in the Fiscal Year
increased workload during the technical 2009 budget that can be
upgrade of SAP and the migration of the utility reappropriated.
billing system, some work needed to be
reprioritized as staff was not able to complete
all of the plans for FY 2009. Among the items
that are planned to be addressed are the
migration of GIS data from the Utilities
Engineering group to the Enterprise GIS, the
completion of the Information Technology
Strategic Plan update, upgrading of software
for the Budget Division and potentially
performing modifications to the City's web site
as identified by the Public Web Committee.
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