HomeMy WebLinkAboutStaff Report 306-08City of Palo Alto
City Manager’s Report
TO:
ATTENTION:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
JULY 15, 2008 CMR: 306:08
REQUEST TO PRELIMINARILY APPROVE
REAPPROPRIATIONS REQUESTS
2007-08
RECOMMENDATION
Staff recommends that the Finance Committee recommend that Council preliminarily approve
the FY 2007-08 reappr0priations (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
reappropriatio.ns 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
CMR:306:08 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. 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:
DEPARTMENT HEAD APPROVAL:
DALE WONG d~";
Senior Financial Anal ~st
LALO P~ -
Direc,tor, Administrative Services
CITY MANAGER APPROVAL:
STEVE
Deputy City ers
MORARIU
ATTACHMENT
Attachment A: 2007-08 Reappropriations List
CMR:306:08 Page 2 of 2
Attachment A
2007-08 REAPPROPRIATION REQUESTS
$
I I
COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN 2007-08 STATUS
City Man ager’s Office
$81,000
$30,919
Climate Protection Plan
(CPP)
Document Archiving
and Library Plan/Public
Safety Building Project
This reappropriation is being requested for
additional project funding to assist departments
in achieving CPP goals as mandated by
Council. The request is also for a consultant /
department backfill for additional staff time to
help implement a plan for greenhouse gas
reductions within the community. In 2007-08,
staff completed a cost-benefit analysis of CPP
recommendations under budget. These savings
can be applied in 2008-09 to implement the
plan.
This reappropriation is being requested for the
document conversion of CMRs which did not
occur as planned in 2007-08 due to ’
unanticipated deparmlent priorities. The
request is also for the Library Plan/Public
Safety Building Project which overlaps two
fiscal years.
Recommended $81,000. There is
sufficient balance in the Fiscal Year
2007-08 budget that can be
reappropriated.
Recommended $30,919. There is
sufficient balance in the Fiscal Year
2007-08 budget that can be
reappropriated.
Page 1 of 2
$
I
COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN 2007-08 STATUS
Planning Department
$60,800 Study of parking
permit program for
College Terrace
This reappropriation is being requested for the
study of a residential parking permit program
in College Terrace. On October 25, 2001, as a
condition of their General Use Permit with
Santa Cl.ara, 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 2007-08, the City
Council authorized moving the funds into the
Transportation Section budget and proceeding
with the study. The $60,800 remaining is
reserved specifically for that project to
implement any re(ommendations adopted by
the City Council. Transportation Section will
report back to the City Council with the
consultant’s reconamendations in late Summer
2008. Implementation will begin at that time if
the City Council moves forward with the
project. Implementation of a parking permit
program is not anticipated in the 2008-09
budget.
Recommended $60,800. There is
sufficient balance in the Fiscal Year
2007-08 budget that can be
reappropriated.
Non-Departmental
$475,000 Salary Contingency This reappropriation is being requested for the
Management and Professional group which
includes the compensation study that will be
completed in 2008-09. In addition, the Fire
Chiefs Association will be receiving a salary
increase and two years of retroactive pay in
2008-09, per the negotiated contract agreement.
The contract was agreed upon after the 2008-09
Proposed budget was prepared and the amounts
were not included.
Recommended $475,000. There is
sufficient balance in the Fiscal Year
2007-08 budget that can be
reappropriated.
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