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HomeMy WebLinkAbout14D-Finance .. -, _ f -l <'. CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Date: 9/16/02 0[/'"- ", /fL .., Ii.... Subject: Authorize the Director of Finance to amend the various FY 2002-2003 revenue and expense budgets as outlined in the staff report for the upgrade of the City's CAD/RMS/AVL system, Dispatch Consoles, Network Backbone, Document Imaging, and PC Upgrade Program. From: Barbara Pachon, Finance Director Dept: Finance Synopsis of Previous Council Action: Recommended motion: 1) Authorize the Director of Finance to amend the various FY 2002-2003 revenue and expense budgets as outlined in the staff report for the upgrade of the City's CAD/RMS/AVL system, Dispatch Consoles, Network Backbone, Document Imaging, and PC Upgrade Program. Actual expenditure of the funds will not take place until after the Mayor and Council has approved each project. ~~ JaL.,_ Si~ture Contact person: Barbara Pachon, Director of Finance Phone: 5242 Supporting data attached: Ward: All FUNDING REQUIREMENTS: Amount: $2,148,600 Source: Various sources as outlined in the report Finance:~/o~ Council Notes: Agenda Item No. 'f/~/D:r /9 D . . .CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT To authorize the Director of Finance to amend the various FY 2002-2003 revenue and expense budgets as outlined in the staff report below for the upgrade of the City's CADIRMS/A VL system, Dispatch Consoles, Network Backbone, Document Imaging, and PC Upgrade Program. BACKGROUND The Information Services Department (IS) has five upgrade projects they have identified which need to be started in FY 2002-2003. Included on the September 23, 2002 agenda are three of these five projects for Council approval, which are CADIRMS/A VL system, Dispatch Consoles, and Network Backbone upgrade. The two remaining projects, Document Imaging and PC Upgrade, will be coming to Council in the near future after bidding and pricing is completed. Since these are large projects and the funding for them is complicated, it was determined that a separate report covering all the funding issues for all the projects would be the best way to give the Mayor and Council a complete financial picture for the projects. Although this financial plan assumes all five IS projects will occur this year, the funds will not be expended and the projects done unless the Council has approved the IS agenda items for each project. If a project for some reason is not approved, the funding in the amount of that project will remain unexpended and will lapse into fund balance to be used at some later date as approved by the Mayor and Council. FINANCIAL IMPACT In July 2002, when the City's FY 2002-2003 budget was adopted, it was initially recommended that the projects would be paid from a combination of sources including Police Grants, Asset Forfeiture, and a lease financing mechanism. Recognizing the additional financing cost of a lease/purchase and the additional debt burden it puts on the General Fund in the future, Finance with the help of Police and IS worked to identify other alternative funding sources for the projects. One goal was to try and identify enough funds to pay for the projects this fiscal year. A second goal was to use funds that would not cause cuts or negative impacts to regular Department operations. Listed below is a sununary of the costs for each of the five projects and a list of the proposed funding sources with a brief discussion about each funding source: Proiect Descrintion CADIRMS/A VL Dispatch Consoles Network Backbone Document Imaging PC Upgrades Total Cost Estimated Cost $895,600 89,000 259,400 250,000 654.600 $2,148,600 . - \ Pro Dosed Fundinl! Source 1. Asset Forfeiture 2. State 911 Funds 3. Evidence Impound 4. IS Fund Balance 5. Water Department 6. 1997 Computer Bond Funds 7. IS Debt Service 8. IS Budget for PC Upgrade 9. 1998 Fire Lease Balance Total Funding Amount $ 368,700 150,000 150,000 271,500 65,000 224,200 196,000 717,700 5.500 $2,148,600 I. Asset Forfeiture - Already included in the FY 2002-2003 Asset Forfeiture budget is $100,000 for the IS projects. At the end ofFY 2001-2002 (May and June) there was $268,700 of additional Asset Forfeiture revenues that came in over what was projected. The Police Department has agreed that these additional $268,700 of Asset Forfeiture revenues now sitting in fund balance can be appropriated and also put toward these IS projects since the projects benefit Police. Since these funds were not anticipated to be received, the Police Dept. did not budget to spend these funds in FY 2002-2003. 2. State 911 Funds - These are funds held by the State for each City to be used to upgrade the Police 911 system. The Police Dept. and IS have identified $150,000 of expenses from the various IS projects that would be eligible to be paid for by these funds. Since the State requires that they pay vendor invoices direct with these funds, the City does not need to budget the revenue or expenses of these funds but rather just send the vendor invoices to the State for them to pay. 3. Evidence Impound - This is a trust account that is used to collect funds recovered by the Police Dept. from various arrests they do. These funds are held in trust for about two years and then if not claimed (which they usually are not) are eligible to be recorded as revenue to the General Fund. The last transfer to move funds out of the Trust into the General Fund was about two years ago. It is proposed that $150,000 be transferred out of the Trust and recorded as revenue in the General Fund and then appropriated to be expended on the IS projects. There will be a remaining balance of about $25,000 left in the Evidence Impound Trust which will be sufficient if the City does receive any claim reimbursement in the future. 4. IS Fund Balance - These funds have accumulated over the years from salary savings and project savings. They remain in the IS Fund Balance until appropriated by the Council to be used on a project. These funds have not been budgeted to be used in FY 2002-2003 so they need to be appropriated into the IS expense budget to be put toward the projects discussed in this report. 5. Water Department - These are funds that IS has negotiated to be received from Water above what Water already pays for IS services. Since the Water Dept. will receive benefits from some of the IS projects, they agreed to contribute a total of $65,000. These funds need to be budgeted as revenue and expense in the IS Fund so they can be used for the IS projects. .. -e .... 6. 1997 Computer Bond Funds - These funds were received initially as part of the 1997 computer upgrade project. They were held as a contingency for the project and then whatever was left was to go toward a new Document Imaging. IS working with the City Clerk and several other Departments have selected the Imaging system that would fit the needs of the City. This item is planned to go to the Council within the next month and if approved will be mostly paid from this source of funds. 7. IS Debt Service - These funds were included in the FY 2002-2003 budget and just need to be moved from the debt service account to the computer equipment account within the IS FY 2002-2003 budget. Since no fmancing is being done for the IS projects, these Funds will not have to be included in the IS FY 2003-2004 budget which will be a savings to the General Fund. 8. IS Budget for PC Upgrade - The City has included about $120,000 in the IS budget since FY 97 for a PC replacement program. The funds have now accumulated to $717,700 including the $120,000 in FY 2002-2003. The Mayor and Council need to approve the carryover of $597,700 from FY 2001-2002 to FY 2002-2003 so all the funds can be available to spend in FY 2002-2003 for PC Upgrades that are needed in various Departments. 9. 1998 Fire Lease Balance - This is the remaining balance from the 1998 Fire Trucks and equipment purchases that were approved by the Mayor and Council. Since the Fire Department benefits from the IS projects, it is allowable to use this small remaining balance on these IS projects. RECOMMENDATION Authorize the Director of Finance to amend the various FY 2002-2003 revenue and expense budgets as outlined in the staff report for the upgrade of the City's CADIRMS/A VL system, Dispatch Consoles, Network Backbone, Document Imaging, and PC Upgrade Program. Actual expenditure of the funds will not take place until after the Mayor and Council has approved each project.