HomeMy WebLinkAboutStaff Report 332-06City
City of Palo Alto
Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER
19
DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
SEPTEMBER 11, 2006 CMR: 332:06
REQUEST TO PRELIMINARILY APPROVE 2005-06 REAPPROPRIATION
REQUESTS
RECOMMENDATION:
The Finance Committee recormnends
reappropriations (Attachment 1).
that the Council preliminarily approve the 2005-06
COMMITTEE REVIEW AND RECOMMENDATIONS:
The Committee voted unanimously to accept staff s recommendation.
PREPARED BY:
Sr. Financial Analyst
DEPARTMENT HEAD:
CARL
Administrative Services
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
ATTACHMENTS
Attachment 1: CMR 300:06
CMR:332:06 Page 1 of 1
Attachment I
City of Palo Alto
City Manager’s Repor
TO:
ATTENTION:
FROM:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
JULY 18, 2006 CMR: 300:06
REQUEST TO PRELIMINARILY APPROVE
REAPPROPRIATIONS REQUESTS
2005-06
RECOMMENDATION
Staff recommends that the
reappropriations (Attachment A).
Finance Committee preliminarily approve the 2005-06
BACKGROUND
As a part of the year-end process, department staff works with the Administrative Services
Department (ASD) to review outstanding financial obligations. In the course of regular
operations, these items 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) was amended to
implement mission driven budgeting and the 2-year budget process (CMR:212:95;
CMR: 155:95). 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 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.
CMR:300:06 Page 1 of 2
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
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. All of
the submitted 2005-06 reappropriation requests were approved. Final approval will be requested
by Council after the books are closed.
RESOURCE IMPACT
Staff has determined that sufficient uncommitted budgeted funds exist to allow for the
preliminary approval of the attached 2005-06 reappropriations list (Attachment A). General
Fund proposed reappropriations total $115,000 and Enterprise Fund reappropriations total
$150,000.
POLICY IMPLICATIONS
This recommendation is consistent with adopted Council policy.
ENVIRONMENTAL REVIEW
The action recommended is not a project
Quality Act.
for the purposes of the California Environmental
PREPARED BY:
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
MA~’~IGO~
Senior Financial Analyst
CARL YEATS /
Director, AdminiStrative Servi~es~
EMIL~ HARRISON
Assistant City Manager
ATTACHMENT
Attachment A: 2005-06 Reappropriations List
CMR:300:06 Page 2 of 2
Attachment A
2005-06 REAPPROPRIATION REQUESTS
GENERAL FUND
ENTERPRISE FUND
TOTAL
Total Requests
$115,000
$150,000
$ 265,000
Total Recommended
$115,000
$150,000
$265,000
$
[
COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN 2005-06 STATUS
City Manager’s Office
$50,O0O California Avenue
Streetscape Master Plan
This reappropriation is being requested because
this project is pending due to the timing of the
California Avenue Streetscape Master Plan
implementation.
Recommended $50,000. There is
sufficient balance in the 2005-06
budget that can be reappropriated.
Planning and Community Environment Department
$35,000 Zoning Ordinance
Update
This reappropriation is being requested because
of anticipated vacancies in 2006-07 the
department will be forced to use the majority
of its contract budget to complete various
aspects of its work program that cannot be
done in-house. Reappropriating the Zoning
Ordinance Update budget will help staff .
complete this project without asking the City
Council for additional funding.
Recommended $35,000. There is
sufficient balance in the 2005-06
budget that can be reappropriated.
Public Works Department
$30,000 Thermoplastic Marking This reappropriation is being requested because
many areas in various parts of the city
identified for thermoplastic markings are
currently under construction with other Public
Works or Utilities projects. This project is
anticipated to be completed in the Fall of 2006.
Recommended $30,000. There is
sufficient balance in the 2005-06
budget that can be reappropriated.
Public Works Department - Refuse Fund
$150,000 PASCO Solid Waste
and Recycling
Agreement
This reappropriation is being requested because
in the PASCO agreement ifPASCO’s gross
revenue for the preceding contract year is less
than 15 percent of the baseline revenue, the City
shall pay PASCO the amount of the deficit
between the actual recycling revenue and the
baseline revenue less than 15 percent. In 2005-
06, this was the case and this reappropriated
amount would cover this expense in 2006-07.
Recommended $150,000. There is
sufficient balance in the 2005-06
budget that can be reappropriated.
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