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HomeMy WebLinkAbout2007/11/06 Item 7 CITY COUNCIL AGENDA STATEMENT ~\I~ CITY OF ifIII. "" (HULA VISTA NOVEMBER 6, 2007 Item-1- SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2006-2007 BUDGET IN ACCORDANCE WITH THE BUDGET TRANSFER DIRECTOR OF FINAN EfTREASURE~ CITY MANAGER 4/5THS VOTE: YES 0 NO D ITEM TITLE: BACKGROUND For government entities, a budget creates a legal framework for spending during the fiscal year. After the budget is approved there are circumstances, which arise that could require adjustments to the approved budget. At the close of each fiscal year, the Finance Department reviews all departmental and fund budgets to ensure that the fund budget and the departmental summary budget categories (Personnel Services, Supplies and Services, Other Expenses and Capital) have not been exceeded. For fiscal year 2006/07, budget adjustments are required for the City Attorney's office and Police Department. The Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (Personnel Services, Supplies and Services, Other Expenses and Capital). In order to comply with the intent of this policy, the transfers discussed below are recommended for approval. All recommended General Fund transfers can be done using existing appropriations. ENVIRONMENTAL REVIEW Not applicable. RECOMMENDATION That Council approve the resolution amending Fiscal Year 2006-2007 budget in accordance with the budget transfer. BOARDS/COMMISSION RECOMMENDATION: Not applicable. 7-1 NOVEMBER 6, 2007, Item~ Page 2 of2 DISCUSSION Council Policy 220-02 "Financial Reporting and Transfer Authority" was established in January of 1996 and indicates that no department shall end the fiscal year with a negative balance in any budget summary category In order to comply with the intent of this policy, the transfers discussed below are recommended for approval. Council has approved similar requests in the past after the close of the fiscal year. When considering this request for budgetary transfers it is important to note the following: · The transfer requests are for fiscal year 2006/07 and do not affect the current fiscal year 2007/08 budget. · All recommended departmental transfers for the General Fund can be accomplished with existing appropriations and no additional General Fund appropriations are being requested. There are two transfer requests being made by this staff report. The City Attorney's office requires a transfer of $24,000 from the Personnel Services category to the Services and Supplies category for greater than anticipated expenditures related to professional services. The Police Department requires a transfer of $64,000 from the Personnel Services category to the Supplies and Services category in order to cover greater than anticipated expenditures related to fleet maintenance expenditures. Savings realized from the personnel services category of the City Attorney's office budget and the Police Department's budget, respectively, will be utilized to cover the unanticipated costs. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site speCific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. FISCAL IMPACT Savings achieved within existing budgets will cover the recommended transfers between the General Fund departments. Prepared by: Phillip Davis, Assistant Director, Finance Department 7-2 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2006-2007 BUDGET IN ACCORDANCE WITH THE BUDGET TRANSFER WHEREAS, the Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (personnel Services, Supplies and Services, Other Expenses and Capital); and WHEREAS, the Council Policy established in January 1996 indicates that no department shall end the fiscal year with a negative balance in any budget summary category; and WHEREAS, the City Attorney's office ($24,000) exceeded its budget in the Supplies and Services category due to higher than anticipated professional services costs; and WHEREAS, the savings realized in the City Attorney's Personnel Services budget category exceeded $24,000; and WHEREAS, Police Department ($64,000) exceeded its Services and Supplies budget due to additional costs associated with fleet maintenance; and WHEREAS, the savings realized in the Police Department's Personnel Services budget category exceeded $64,000; and WHEREAS, the recommended transfers between the General Fund departments will be covered by savings achieved within existing budgets. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista amends the City's fiscal year 2006-2007 budget in accordance with the Council Policy on Financial Reporting and Transfer Authority. Presented by Approved as to form by ( Maria Kachadoorian Director of Finance 7-3