HomeMy WebLinkAbout23-Finance
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Barbara Pachon
Director of Finance
Subject:
Approval of FY 200412005 to FY 2005/2006
Continuing Appropriations and Encumbrance
Carryovers; and, authorization to contribute
$261,000 of FY 200412005 budget savings to
the Budgeted Reserve to be used for
anticipated increases in future PERS Safety
costs.
Dept:
Finance
M & CC Date: 12/5/05
Synopsis of Previous Council Action:
November 17, 2003 Motion approving FY 2002/2003 Continuing Appropriations and
Encumbrance Carryovers into FY 200312004.
August 16, 2004 Resolution 2004-263 (Adopting FY 2004-2005 Final Budget)
November 17, 2004 FY 2003-2004 Year-End Report (including FY 200312004 to
2004/2005 Carryovers) presented to Ways & Means Committee.
December 6, 2004 Motion approving FY 200312004 Continuing Appropriations and
Encumbrance Carryovers into FY 2004/2005.
June 23, 2005 Resolution 2005-226 (Adopting FY 2005-2006 Final Budget)
November 23, 2005 FY 2004/2005 to FY 2005/2006 Carryovers presented to Ways &
Means Committee
RECOMMENDATION:
That the Mayor and Council approve carrying over the attached listing of FY 2004-
2005 Continuing Appropriations and Encumbrances into FY 2005-2006 and,
2. That the Mayor and Council approve the contribution of $261,000 from FY 2004-
2005 budget savings into the FY 2005-2006 Budgeted Reserve to be used for
anticipated increases in future PERS Safety costs. {$ItjtL/~. d,q.~
SignatUre
1.
Contact Person:
Barbara Pachon
Phone: (909)384-5242
Ward:
Supporting data attached:Staff Report. carrvover detaillistina
FUNDING REQUIREMENTS: Amount: Varies bv fund. see attached Iistina
Source: Fund balance (varies by fund) see
attached Iistin~ ~
Finance: ~f~#A~ .
Council Notes:
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Agenda Item No. a.J
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STAFF REPORT
SUBJECT
The purpose of this staff report is to submit for approval to Council the attached list ofFY 2004-
2005 continuing appropriations and encumbrances to carryover into FY 2005-2006; and, to
approve the contribution of $261,000 from FY 2004-2005 budget savings into the Budgeted
Reserve for anticipated increases in future PERS Safety costs.
BACKGROUND
As part of the year-end process, Finance analyzes outstanding purchase orders, contracts and
remaining budget balances to determine what appropriations should be carried over into the new
fiscal year. Because the City continues to receive and process invoices from the previous fiscal
year through September, the carryover list cannot be included in the annual budget process which
concludes in June.
The attached list of encumbrance carryovers and continuing appropriations reflect City
commitments to projects, services or purchases that were made in FY 2004-2005 but were not
completed or paid for in FY 2004-2005. In limited cases, savings from departmental budgets are
requested to be carried over for purposes different from the originally budgeted items. (These
exceptions are discussed in the respective departmental sections below.) The unexpended funds
from FY 2004-2005 remain available but Council approval is needed to re-appropriate the funds
for use in FY 2005-2006. Total net General Fund savings requested to be carried over from FY
2004-2005 into FY 2005-2006 total $1,381,000.
ENCUMBRANCECARRYOVERS
An item is placed on the encumbrance report if a purchase order and/or contract has been issued
to a specific vendor for the item. Purchase orders and contracts are legally binding documents
committing the City to pay the vendors for their products or services. Usually, items on the
encumbrance report are on back-order, the service has been received but tire invoice is pending,
or the invoice was paid after the deadline to process FY 2004-2005. General Fund net
encumbrance carryovers total $509,400.
CONTINUING APPROPRIATIONS
Items are placed on the continuing appropriations list when a purchase order or contract has not
yet been issued or the project covers multiple fiscal years. (Purchase orders and contracts are only
issued after the appropriate vendor has been identified and the department is ready to begin the
project.) When Council originally gives approval for a project, all funds are budgeted; however .
the timeframe to complete the project may extend into the next fiscal year so the remaining
budgeted funds need to be carried over. In limited cases, budget savings are requested to be
carried over for purposes other than originally budgeted items. General Fund continuing
appropriations total $610,600. Items that are not routine requests are briefly explained below:
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DeveloDment Services
Development Services is requesting to carryover a total of $126,400 in unexpended funds. Of
this amount, $14,000 is for the grant match for the Santa Fe Depot Area Plan Grant which was
not spent in FY 2004-2005, but is anticipated to be used in FY 2005-2006. $12,000 budgeted as
the City's share of the "Multi-Species Habitat Conversation Plan" is also recommended for carry
over into FY 2005-06. $47,000 in contractual savings are also requested to be used for contract
archival services (RFP currently in process). $7,200 of contractual savings will be used to pay
for additional staff training required on the automated permits system. The remaining $46,200 is
for payment of consultant services previously approved by the Mayor and Council at the 8/1105
and 8/15/05 Council meetings.
City Attornev 's Offzce
When the 2005-2006 Budget was adopted by the Mayor and Council at the 6/23/05 Council
meeting, a motion was also included to "approve upgrading the Legal Administrative Analyst
position to a Deputy City Attorney position, with the Legal Administrative Analyst position to
remain unfunded." $15,000 in salary savings is requested to be carried over to cover costs
associated with this change.
General Government
$50,000 of General Government (Non-Departmental) savings are requested to be used to pay for
the anticipated cost related to implementing GASB (General Accounting Standards Board)
Pronouncement 34. GASB 34 requires the development of valuations for all City infrastructure
(i.e. roads, storm drains, traffic lights, etc.). This funding will be used to: prepare the RFP,
develop the valuations, and assist with the auditing and financial reporting requirements.
Facilities Manaf!ement
Included in the FY 2004-2005 Adopted Budget was approval to remodel the Animal Control
Department's "cat room." Final work on the project was completed and invoices of $57,900
processed after 6/30/05. Facilities Management is also requesting to use a combination of
savings totaling $149,000 from vacant positions, unexpended M&O and unexpended debt service
accounts. This savings will be used to fund various facility maintenance/repair/upgrade projects
such as: new council chamber voting system, security camera updates, City Hall Plaza
DecklCVB roof and lighting retrofit projects.
Police DeDartment
At the 7/5/05 Council Meeting, the Mayor and Council approved the acceptance of the SB 621
Grant to fund seven (7) police department positions. In FY 2004-05, SB 621 funds covered six
(6) positions. Because this grant item was being developed at the same time the FY 2005/06
budget deliberations were occurring, only six (6) positions, rather than seven (7) were included in
the budget, which was approved on 6/23/2005. Due to this timing difference, a carryover of
salary savings in the amount of $107,800 is requested to correct this oversight.
CATV
$76,800 was included in the CATV FY 2004-05 budget to pay EDA for CATV's building space.
This payment was processed after the final deadline to process FY 2004-2005 payments.
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BUDGETED RESERVE
$261,000 in savings remains in General Government from funds budgeted for MOU costs. It is
recommended that this savings be placed in the General Fund's Budgeted Reserve to plan for and
offset the future anticipated cost of Safety PERS costs. A motion to place these funds in the
Budgeted Reserve has been included on the agenda. This contribution will increase the Budgeted
Reserve to a new total of $6,659,200 (of which $261,000 is specifically for anticipated Safety
PERS costs).
FINANCIAL IMPACT
All appropriations lapse at the end of the fiscal year and unexpended funds go back into fund
balance. The QIlexpended funds remain in fund balance until they are re-appropriated through
the carryover process in the new fiscal year. Total net General Fund continuing appropriations,
encumbrance carryovers (both revenue and expenditures), and contributions to the General Fund
Budgeted Reserve are $1,381,000.
RECOMMENDATION
1.) That the Mayor and Council approve carrying over the attached listing of FY2004-
2005 Continuing Appropriations and Encumbrances into FY 2005-2006 and,
2.)
That the Mayor and Council approve the contribution of $261,000 from FY 2004-
2005 budget savings into the FY 2005-2006 Budgeted R:eserve to be used for
anticipated increases in future PERS Safety costs.
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