HomeMy WebLinkAboutStaff Report 365-05TO:
ATTENTION:
FROM:
DATE:
SUBJECT:
City of Palo Alto
City Manager's Report
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
SEPTEMBER 20, 2005 CMR: 365:05
REQUEST TO PRELIMINARILY APPROVE 2004-05
REAPPROPRIATIONS REQUESTS
RECOMMENDATION
Staff recommends that the Finance Committee preliminarily approve the 2004-05
reappropriations (Attachment 1).
BACKGROUND
As a part of the typical year-end process, department staff work with the Administrative Services
Department (ASD) to review outstanding financial obligations as of year-end. 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 appropriations 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.
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 the other
encumbered carry-forwards 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:365:05 Page 1 of2
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 for possible
carry-forward into the next. Attachment 1 identifies those reappropriation requests that ASD
recommends for preliminary approval. Final approval will be requested by Council after the
books are closed.
RESOURCE IMPACT
Staff has determined that sufficient uncommitted budgeted funds do exist to allow for the
preliminary approval of the attached 2004-05 reappropriations list (Attachment 1). General Fund
proposed reappropriations total $267,000, along with $525,000 in the Internal Service Fund, and
$94,322 within a housing Special Revenue Fund. For comparative purposes, Council approved a
similar General Fund operating amount ($444,322) in 2003-04.
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:
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
ATTACHMENT
rvaRY DIVINSKI
Senior Financial Analyst
CARL YEATS
Director, Admini
~{j~ EMiUHARRlSON \.
Assistant City Manager
Attachment 1: 2004-05 Reappropriations List
CMR:365:05 Page 2 of2
Attachment 1
2004-05 REAPPROPRIATION REQUESTS
INTENDED USE
Planning Department
$112,000
$70,000
$25,000
Zoning Ordinance
Update
Study of sites suitable
for auto dealership
zoning, redevelopment
opportunities, land use
studies of the golf
course
South El Camino Real
CalTrans Master
Design Schematic
COMMENTS IREASONS
FOR NOT COMPLETING IN 2004-05
This reappropriation is being requested because
of the need for additional studies and outreach
has resulted in project delays. This project is
scheduled for completion at the end of2005.
Due to the scale of this proj ect, staff expects
further requests for additional study and
outreach requiring resources beyond what is
available in the 2005-06 budget.
This reappropriation is requested because
the auto dealership zoning, redevelopment
opportunities, and land use studies of the golf
course were projects begun at City Council
direction late in the 2004-05 fiscal year, and
were not anticipated in the 2005-06 work plan.
Funding for unanticipated Planning projects for
2005-06 has been cut. Funds should be
from this fiscal
This reappropriation is being requested because
this project has been delayed during
discussions with Caltrans to ensure new
proposed regulations for EI Camino Real would
accommodate the City's design schematic.
Discussions are nearly complete, 'and staff
intends to complete the project next fiscal year.
STATUS
Recommended $112,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Recommended $70,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Recommended $25,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Page 10f2
COMMENTS IREASONS
INTENDED USE NOT COMPLETING IN 2004·05
Planning Department, continued
$60,000 Completion of
Downtown North .
This reappropriation is being requested because
money for the Downtown North traffic cahning
project was reappropriated from 2003-04. The
trial is complete, and an evaluation is in
progress. This budget is necessary for any
changes to the project that will be required
after the evaluation and neighborhood
outreach.
Public Works Department
$525,000 2004-05 Vehicle
Replacement ProJects
This reappropriation is being requested because
of a vacancy in a key position (Fleet Services
Coordinator), and the training status of our new
Assistant Fleet Manager, the Fleet Manager has
not been able to devote a sufficient amount of
time to vehicle replacement projects.
Equipment Management's primary contract for
truck body and equipment fabrication and
installation expired early iIi 2004-05. Going
forward, Equipment Management determined
that an RFP process would be the best option
for selecting a new vendor. The development
of this RFP has taken some time, however, it is
expected that we will have a contract with a
new vendor sometime in July. In the
current have been
Planning Department -BMR l[Ulld
$94,322 BMR Unit This reappropriation is being requested because two
Preservation BMR units were foreclosed on this year; the City is
Program exercising its option to purchase and resell the BMR
units to maintain their affordability. One purchase was
already completed; the other will be completed before
the end of June. Budget for maintenance and
rehabilitation costs must be reappropriated.
STATUS
Recommended $60,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Recommended $525,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Recommended $94,322. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
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