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HomeMy WebLinkAbout60C - AA DEPT BUDGET TRANSFERREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JUNE 4, 2019 TITLE: APPROVED 0 As APPROVE APPROPRIATION ElAs Amended Recommended ADJUSTMENT TO TRANSFER GENERAL ❑ Ordinance on 151 Reading FUND BUDGET BETWEEN VARIOUS El Ordinance on Reading Re ❑ Implementing Resolution DEPARTMENTS FOR FISCAL YEAR 2018- ❑ set Public Hearing For 19 WITH NO NET FISCAL IMPACT (STRATEGIC PLAN NO. 4, 1, 3) CONTINUED TO FILE NUMBER CITY ER RECOMMENDED ACTION Approve the proposed maximum General Fund appropriation adjustment as follows. The actual appropriation adjustment between departments may be less, based upon final fiscal year-end amounts. Department Reason Amount City Manager's Office (CIVIC) Former City Manager separation payment, and payment of significant accrued leave for two other CMO employees who separated from the City $450,000 Non -Departmental Updated Information Technology Internal Service Allocations $300,000 Clerk of the Council Election Savings $ 250,000 Public Works Agency Staff Vacancy Savings $ 500,000 General Fund Net Impact 1 $0 DISCUSSION Per Section 609 of the Santa Ana Charter, spending cannot exceed the Council -approved appropriations by department within each fund. Soecifically, Section 609 of the Santa Ana Charter states that: "From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several offices, agencies, and departments for the respective objects and purposes therein specified as stated in an appropriation ordinance. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. 60C-1 Appropriation Adjustment to transfer General Fund budget between departments June 4, 2019 Page 2 At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least two-thirds (213) of the members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget, except that the City Council shall not reduce that portion of the budget providing for the support of public recreation programs below the amount specified in section 607 of this article." Staff monitors the budget to ensure spending does not exceed appropriations. A recent analysis of General Fund expenditures suggests two departments will exceed FY18-19 budgeted appropriations. Staff recommends an appropriation adjustment to ensure budgetary compliance. STRATEGIC PLAN ALIGNMENT The recommended appropriation adjustment assists the City with meeting Goal #4, Objectives 1, and 3 — Maintain a stable, efficient and transparent financial environment; and maintain a structurally balanced budget with appropriate reserve levels. FISCAL IMPACT There is no net fiscal impact to the General Fund. The proposal would adjust the following accounting units by amounts up to the maximums listed. Department/Division Accounting Unit -Account Maximum Amount City Managers Office 01103010-61000 $450,000 Non -Departmental 01105015-65050 $300,000 Clerk of the Council 01107031-62300 $ 250,000 Public Works Agency/Traffic & Transportation 01117620-61000 $ 200,000 Public Works Agency/Sanitation 01117643-61000 $ 300,000 General Fund Net Fiscal Impact $0 APPROVED AS TO FUNDS AND ACCOUNTS: d-a-A Kathryn Down , CPA I-^^ Executive Director Finance and Management Services Agency 60C-2