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HomeMy WebLinkAbout23-Finance c o o 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: Jd..j sf-os" Agenda Item No. a.J c c c 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: 1 c c o 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. 2 o c o 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. 3 c en Z o ~ D!: a.. 00 cO:: .- a.. 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