HomeMy WebLinkAboutStaff Report 287-07TO:
ATTENTION:
FROM:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JULY 17, 2007 CMR: 287:07
SUBJECT:REQUEST TO PRELIMINARILY APPROVE 2006-07
REAPPROPRIATIONS REQUESTS
RECOMMENDATION
Staff recommends that the Finance Committee preliminarily approve the 2006-07
reappropriations (Attachment A).
BACKGROUND
As a part of the year-end process, department staff works withthe Administrative Services
Depm-tment (ASD) to review outstanding financial obligations.In the course of regular
operations, these items span two fiscal years in the processing--plaiming in one fiscalyear and
actual payment in the next. This necessitates carrying forward both encumbered andbudgeted
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 acconmaodate 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 begiiming 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 late, final approval of
the reappropriations where the reappropriation was justified and sufficient funds from the prior
year are 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
CMR:287:07 Page 1 of 2
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. Attactvnent 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 2006-07 reappropriations list (Attactmaent A). General
Fund proposed reappropriations total $70,000 and Emerprise Fund reappropriations total
$60,000.
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 Enviromnental
Quality Act.
SHARON BOZMAN
Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
CARL YEATS
Director,rative Services
CITY MA_NAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
ATTACHMENT
Attachment A: 2006-07 Reappropriations List
CMR:287:07 Page 2 of 2
Attachment A
2006-07 RE.APPROPRIATION REQUESTS
Total Requests
$ 70,000
$ 60,000
$130,000
Total Recommended
$ 70,000
$ 60,000
$130,000
S
AMOUNT INTENDED USE
CommuniO, Services Department
$7o,ooo
COMMENTS/REASONS
FOR NOT COMPLETING IN 2006-07 STATUS
Consultant Services -
Golf Course
This reappropriation is being requested for the
operational analysis of City Golf course
operations; which include market and facility
analysis, and recommendations and analysis of
alternative operating models. The contract is
currently undergoing the RFP process and the
contact wil! be awarded in Fiscal Year 2007-
08.
Recommended $70,000. There is
sufficient balance in the Fiscal Year
2006-07 budget that can be
reappropriated.
Public Works Department- Refuse Fund
$60,000 Design work - Byxbee
Park Gas Collection
system.
This reappropriation is being requested for the
design costs associated with the Byxbee Park
Gas collection system. The funding wil! be
moved to CIP RF-09002 in Fiscal Year 2007-
08.
Recommended $60,000. There is
sufficient balance in the Fiscal Year
2006-07 budget that can be
reappropriated.
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