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Home My WebLink About2008/10/21 Item 6 CITY COUNCIL AGENDA STATEMENT ~'O<::" ~(~ CITY OF _.a ~CHULA VISTA OCTOBER21, 2008 Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHLrLA VISTA .".1\;[ENDING FISCAL YEAR 2007/2008 BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY ON FINANCIAL REPORTING AND T~".1"\iSFERAUTHORITY SUBMITTED BY: DIRECTOR OF FIN.".1"\iCE/TREASURERc.fK. REVIEWED BY: INTERIM CITY MANAGER S 7 YES Mx NO nl 4/5THS VOTE: ~ SUMIVL<illY For goverrunent entities, a budget creates a legal li'amev/ork 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 2007/08, budget adjustments are required for the City Attorney, Human Resources, Public "Vorks and the Nature Center departments. The Council Policy on Financial Reponing 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 recorrunended General Fund transfers can be done using existing appropriations. . ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that complying vvith the Council Policy on Financial Reporting and Budget Transfer Authority is not a "Project" as delined under Section 15378 of the State CEQA Guidelines because it ""ill not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. 6-1 OCTOBER 21, 2008, Item~ Page 2 of3 RECOMMENDATION That Council approve the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION COlillcil 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 2007/08 and do not atIect the current fiscal year 2008/09 budget. . All recommended departmental transfers for the General Fund can be accomplished ,vith existing appropriations and no additional General Fund appropriations are being requested. There are four transfer requests being made by this staff report. The City Attorney's office requires a transfer of $160,500 from budgetary savings in the Personnel Services category to the Supplies and Services category for greater than anticipated expendimres related to professional services. The Human Resources department requires a transfer of $677,000 ti:om budgetary savings in the Personnel Services ($285,000) and Supplies and Services ($392,000) categOties to the Other Expenses category to cover greater than anticipated expenditures related to additional public liability claims. The Public Works department requires a transfer of $42,500 from budgetary savings in the Personnel Services category to the Utilities category to cover greater than anticipated water costs tor park maintenance. The Nature Center department requires a transfer of $63,000 from budgetary savings in the Supplies and Services category to the Personnel Services category due to the elimination of the Nature Center Director position. DECISION MAKER CONFLICT 6-2 OCTOBER 21, 2008, Item~ Page30f3 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)(I) is not applicable to this decision. FISCAL IMPACT There is no impact to the General Fund. Savings achieved within existing budgets will cover the recommended transfers between the General Fund departments. Preparqd by: Phillip Davis. .1ssistam Director, Finance Department 6-3 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2007/2008 BlJDGET IN ACCORDANCE WITH THE COUNCIL POLICY ON FINANCIAL REPORTING ANTI TR..A.NSFER AUTHORITY \VHEREAS, 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 ($160,500) exceeded its budget in the Supplies and Services budget category due to higher than anticipated professional services costs; and WHEREAS, the savings realized in the City Attorney's Personnel Services budget category exceeded $160,500; and WHEREAS, Human Resources Department ($677,000) exceeded its Other Expenses budget category due to additional expenditures associated with public liability claims; and WHEREAS, the savings realized in the Human Resources Department's Personnel Services budget category exceeded $285,000 and savings. realized in the Supplies and Services budget category exceeded $392,000; and WHEREAS, the Public Works Department ($42,500) exceeded its budget in the Utilities budget category due to higher than anticipated water costs for park maintenance; and WHEREAS, the savings realized in the Public Works Personnel Services budget category exceeded $42,500; and \VHEREAS, the Nature Center department ($63,000) exceeded its Personnel Services budget category due to additional expenditures associated with eliminating the Nature Center Director position; and WHEREAS, the savings realized in the Nature Center Department's Supplies and Services budget category exceeded $63,000; and WHEREAS, the recommended transfers between the General Fund departments will be covered by savings achieved within existing budgets. J:\Aaomey\RESQIFINANCE\Amcnd FY Oi.OS GF budge! de3nup_IO-I-1-08.doc 6 - 4 Resolution No. 2008- Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista amends the City's fiscal year 2007-2008 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/Treasurer ~c r~- ----C., I. 'J ' I \ /. ; ('--- ~ .LA.. \ I / (l'IV j lZ,u '-'--BaffC.!K-1ies~ '. .,@\. Interl-rri' City Attorney J:\Allom<:ylRESQIFINA,'JCE\Amend FY 07.08 GF iJud!j:~t d"~nup_1O-14_08,doc 6-5