HomeMy WebLinkAbout16-Finance
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Barbara Pachon
Director of Finance
Subject:
FY 2002/2003 to FY 2003/2004
Continuing Appropriations and
Encumbrance Carryovers.
Dept:
Finance
Date:
November 17, 2003
ORIGINAL
Synopsis of Previous Council Action:
July 9th, 2001 Resolution 2001-228 (Adopting FY 2001-2002 Final Budget)
November 5th, 2001 Motion approving FY 2000/2001 Continuing Appropriations and
Encumbrance Carryovers into FY 2001/2002.
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)
RECOMMENDATION:
1. That the Mayor and Common Council approve the attached listing of FY 2002-2003
eo""""'''9 Approp"""o", ,,'" E"oumb",,,,,, c,nyo~.2~
Contact Person:
Barbara Pachon
Phone: (909)384-5242
Supporting data attached:Staff Report. carryover detaillistina
Ward:
FUNDING REQUIREMENTS: Amount: Varies bv fund. see attached listina
Source:
(Acct. No.)
Fund balance (varies bv fund) see
attached listina.
Finance:
Council Notes:
Agenda Item No.
/G
/ 1//7 /17.3
STAFF REPORT
SUBJECT
The purpose of this staff report is to submit for approval to Council the attached list of
FY 2002-2003 continuing appropriations and encumbrances to carryover into FY 2003-
2004.
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 2002-2003 but
were not completed or paid for in FY 2002-2003. The unexpended funds from FY 2002-
2003 remain available but Council approval is needed to re-appropriate the funds for use
in FY 2003-2004. Requests for carryovers are categorized as either encumbrance
carryovers or continuing appropriations. Total net General Fund carryovers
(encumbrance carryovers and continuing appropriations combined) equal $763,400.
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
encumbrance carryovers total $446,100.
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.
General Fund continuing appropriations total $317,300. Some of the larger or
extraordinary requests are discussed below:
Revenues/TSF Out
Since the financing for the Reconstruction of Rosewood Drive (HUB project) did not
occur in the FY 2002-2003 as anticipated, the $2,000,000 Bond Proceeds and $2,000,000
1
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.
Council Office
The Council Office has requested that each Councilmember's remaining travel balance
from FY 2002-2003 be carried over to their FY 2003-2004 travel accounts.
Code
Code Compliance has requested that $100,000 remaining in their FY 2002-2003 building
abatement account be carried over so building abatement efforts and special projects can
be continued in FY 2003-2004.
General Government
At the end of FY 2002-2003 there was still one payment due to La Mesa RV per the
City's sales tax sharing agreement. $27,400 is the estimated amount of the payment
pending.
Development Services
Development Services is requesting to carryover a total of $88,300 in unexpended funds.
Of this amount, $24,500 is for the City's sound abatement agreement with the City of
Lorna Linda and Gateway Beverage which was approved in FY 2002-2003 but not paid.
The $14,000 grant match for the Santa Fe Depot Area Plan grant was not spent in FY
2002-2003, but is anticipated to be used in FY 2003-2004. $11,600 budgeted as the
City's share of the "Multi-Species Habitat Conversation Plan" has also been requested to
be carried over into FY 2003-04.
Because of the number of vacancies in the department, $30,000 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.
Parks. Recreation. and Community Services
The Parks Maintenance Division is requesting to carryover $35,000 of unexpended park
maintenance funds into FY 2003-2004 so that irrigation work on Mountain View
Parkway (34th to Parkdale) can continue. $15,000 has also been requested for expanded
park tree trimming.
Fleet Division
The Fleet Division's $767,500 request for continuing appropnatlOn 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.
2
r
Information Services
The lnformation Services Department (IS) each year budgets funds toward the upgrade
and replacement of citywide computer related equipment as it becomes necessary.
$630,000 from FY 2002-2003 was unexpended and is available for appropriation in FY
2003-2004. Small balances in other projects (see detail) are also requested to be carried
over as they will be completed in FY 2003-2004.
The IS Department also maintains a "department computer contribution account" that
operates in a manner similar to the way the Fleet Divisions' vehicle replacement fund
works. The IS Department's $105,500 request for continuing appropriation represents
the combined total of all departments' individual computer contribution balances.
Departments pay annually each year into the computer contribution fund if they anticipate
the need to purchase specialized or enhanced computer or software equipment that would
not be purchased as part of the basic citywide upgrade and replacement equipment.
In FY 2002-2003, $150,000 was budgeted and spent toward the CAD/RMS/A VL
upgrades. This expenditure of $150,000 is reimbursable to the City in State PSAP funds.
Although the expenditure occurred in FY 2002-2003, the reimbursement will not be
received until FY 2003-2004. Therefore, $150,000 in revenue reimbursement must be
carried over.
City 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. $224,200 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 2002-2003 Budget. Some of the fmal capital project
carryovers vary from the estimates provided in the FY 2002-2003 CIP now that the FY
2002-2003 books have been closed. lncluded 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 $763,400.
RECOMENDATION
That the attached listing ofFY 2002-2003 Continuing Appropriations and Encumbrances
be approved for carryover into FY 2003-2004.
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