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HomeMy WebLinkAbout20-Finance Department CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Dept: Finance Subject: FY 2003/2004 to FY 2004/2005 Continuing Appropriations and o RIG 1 N A lEncumbrance Carryovers. From: Barbara Pachon Director of Finance M & CC Date: 12/6/04 Synopsis of Previous Council Action: June 25,2002 Resolution 2002-175 (Adopting FY 2002-2003 Final Budget) November 4,2002 Motion approving FY 2001/2002 Continuing Appropriations and Encumbrance Carryovers into FY 2002/2003. August 4, 2003 Resolution 2003-223 (Adopting FY 2003-2004 Final Budget) November 17, 2003 Motion approving FY 2002/2003 Continuing Appropriations and Encumbrance Carryovers into FY 2003/2004. August 16, 2004 Resolution 2004-263 (Adopting FY 2004-2005 Final Budget) November 17, 2004 FY 2003-2004 Year-End Report (including FY 2003/2004 to 2004/2005 Carryovers) presented to Ways & Means Committee. RECOMMENDATION: 1. That the Mayor and Common Council approve the attached listing of FY 2003-2004 Continuing Appropriations and Encumbrance Carryovers into FY 2004-2005. &b~L Signature Contact Person: Barbara Pachon Phone: (909)384-5242 Supporting data attached:Staff Report. carryover detaillistinq Ward: FUNDING REQUIREMENTS: Amount: Varies bv fund. see attached Iistinq Council Notes: Source: (Acct. No.) Fund balance (varies bv fund) see . /2attached li~~ /7' Fmance:~dfp~/L _~~ /' Agenda Item No. J~~ Jo " STAFF REPORT SUBJECT The purpose of this staff report is to submit for approval to Council the attached list of FY 2003- 2004 continuing appropriations and encumbrances to carryover into FY 2004-2005. 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 continuing appropriations and encumbrances reflect City commitments to projects, services or purchases that were made in FY 2003-2004 but were not completed or paid for in FY 2003-2004. The unexpended funds from FY 2003-2004 remain available but Council approval is needed to re-appropriate the funds for use in FY 2004-2005. Requests for carryovers are categorized as either encumbrance carryovers or continuing appropriations. Total net General Fund carryovers (encumbrance carryovers and continuing appropriations combined) equal $1,119,900. 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, or the service has been received but the department has not submitted final approval to Finance for payment. General Fund net encumbrance carryovers total $689,200. 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 time frame to complete the project may extend into the next fiscal year so the remaining budgeted funds need to be carried over. General Fund continuing appropriations total $430,700. Some of the larger or extraordinary requests are discussed below: Revenues/TSF Out Since all of the bond proceeds were not utilized for the HUB project in FY 2003-2004 as anticipated, the remaining $200,000 in bond proceeds and $200,000 transfer-out from the General Fund must be carried over. Since the bond proceeds and transfer-out net to zero, there is no impact to the General Fund for this action. Otv Clerk The City Clerk's office has requested that $39,500 remaining in contractual funds be carried over to pay the TOT consultant for services rendered in FY 2003-2004, but not reviewed and verified until FY 2004-2005. Council Office The Council Office has requested that each Councilmember's remaining travel balance from FY 2003-2004 be carried over to their FY 2004-2005 travel accounts. Code Code Compliance has requested that $45,500 remammg in their FY 2003-2004 building abatement account be carried over so building abatement efforts and special projects can be continued in FY 2004-2005. General Government At the end ofFY 2003-2004 there was still one payment due to La Mesa RV per the City's sales tax sharing agreement. $20,000 is the estimated amount of the payment pending. $45,500 was also included in the FY 2003-2004 budget for debt service on ADA restroom improvements at the Fire Department. Because of the timing of when the work began, the first debt service payment will not be due until FY 2004-2005. Develovment Services Development Services is requesting to carryover a total of $134,400 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 2003-2004, but is anticipated to be used in FY 2004-2005. $12,000 budgeted as the City's share of the "Multi-Species Habitat Conversation Plan" has also been requested to be carried over into FY 2004-05. Because of the number of vacancies in the department and volume of projects, $80,000 in unexpended contractual funds is requested to be carried over to allow for contract planning and engineering services as needed to complete projects in a timely manner. Facilities Manaflement In FY 2004-2005, the City entered into an agreement with the County to repair restrooms at the Boys & Girls Club. The City will oversee the work and receive full reimbursement from the County. The project is still in the planning stage and actual expenditures and the corresponding reimbursement will not occur until FY 2004-2005. Parks. Recreation. and Community Services The Parks and Recreation Department is requesting to carryover $36,700 of unexpended park maintenance funds into FY 2004-2005 to be used to supplement the amount budgeted for RSVP grant match purposes. 2 .. Fleet Division The Fleet Division's $1,188,500 request for continuing appropriation represents the combined total of all departments' individual vehicle replacement balances. Departments pay annually each year into the vehicle replacement fund until sufficient funding has accumulated in their account to purchase a vehicle(s). Smaller departments, depending on the size of their contribution, may have to contribute to the fund over a longer period of time before sufficient funding has been accumulated. Information Services The Information Services Department (IS) each year budgets funds toward the upgrade and replacement of citywide computer related equipment as it becomes necessary. $652,600 from FY 2003-2004 was unexpended and is available for appropriation in FY 2004-2005. In FY 2003-2004, $130,000 was budgeted and spent toward the CAD/RMS/A VL upgrades. This expenditure of $130,000 is reimbursable to the City in State PSAP funds. Although the expenditure occurred in FY 2003-2004, the reimbursement will not be received until FY 2004- 2005. Therefore, $130,000 in revenue reimbursement must be carried over. Citv Hall Refinance-Computer ACQuisition Fund In FY 1997-1998, the debt service on City Hall was refinanced and a portion of the proceeds was designated toward computer related upgrades. $99,200 in bond proceeds designated for the citywide imaging project (project not yet completed) remain. Capital Proiects Consistent with previous years' practice estimates for capital project carryovers were included and adopted in the FY 2004-2005 Budget. Some of the final capital project carryovers vary from the estimates provided in the FY 2004-2005 CIP now that the FY 2003-2004 books have been closed. Included in these reports are the major adjustments needed to the carryovers for the CIP funds. Approval of all these carryover adjustments will ensure the CIP projects continue without any funding interruptions. FINANCIAL IMPACT All appropriations lapse at the end of the fiscal year and unexpended funds go back into fund balance. The unexpended 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 and encumbrance carryovers (both revenue and expenditures) are $1,119,900. 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