CITY COUNCIL: Resolution Authorizing Year-End Departmental Budget Transfers for FY 2007/08

Meeting Date: October 7, 2008
Prepared by: Joyce Giuffre,
Admin. Services Director

City Council
Agenda Item Summary

Name: Consideration of a Resolution authorizing year-end departmental budget transfers of $184,552 and transfers of unspent grant revenues ($9,337.92) for fiscal year 2007-08 to comply with state financial restrictions.

Description: City policies require City Council approval for year-end budget transfers between departments. Approval also is required to transfer grant revenues received in fiscal year 2007-08 and not spent by June 30, 2008 to the appropriate grant fund accounts. This resolution authorizes the FY 2007-08 year-end departmental budget transfers and authorizes the transfer of unspent Public Safety Augmentation funds received in FY 2007-08 from the General Fund to the appropriate grant fund account until expenditures are made in future fiscal years.

Year-end Departmental Budget Transfers
At the end of each fiscal year, reports are reviewed that compare department budgets to actual expenditures. Transfers of budget monies within a department are made from one line item to another, if necessary. For fiscal year 2007-08, department line item budget overages were covered by unspent monies from other line items within the same department with the exception of the departments listed in the top portion of the attached Exhibit A.

In total, there were budget expenditure overages totaling $184,552 in six departments (Engineering, Facilities Maintenance, Fire Department, Information Systems, Legal, and Public Works). The largest overages were in the Fire Department for overtime and the Regional Ambulance Subsidy. The Regional Ambulance Subsidy budget overage of $108,844 includes a FY 2006-07 CRFA audit adjustment of $78,520 that the City booked in FY 2007-08.

As outlined in Exhibit A, transfers from four other departments (Administrative Services, Community Planning/Building, Forest, Parks & Beach, and Police Department can be made to cover the expenditure budget overages. These transfers do not increase the total expenditures budget, but instead shift monies from one department to another.

Public Safety Augmentation Funds - $9,337.92
As mandated by Proposition 172, Public Safety Augmentation Funds must be spent for public safety. The City has two Grants Reserve Fund accounts for Public Safety
Augmentation monies. Account 21-24021-0528 for Police services currently has a balance of $36,599.58 and Account 21-24021-0476 for Fire services has a balance of
$6,286.82. For Police services account 21-24021-0528, the FY 2008-09 budget includes
a $29,000 transfer to the General Fund to pay for the Police Department new Target Retriever Safety System. This transfer will reduce the account’s balance to $7,599.58.
In FY 2007-08, the City received $9,337.92 in new Public Safety Augmentation Funds. It is recommended that 50% of the monies be transferred to the Police services account 21-24021-0528 and 50% to the Fire services account 21-24021-0476 for future public safety expenditures.

Overall Cost: City Funds: None
Grant Funds: N/A

Staff Recommendation: Adopt the resolution to authorize the FY 2007-08 year-end departmental budget transfers and the year-end transfers of unspent grant revenues from the General Fund to the appropriate reserve accounts. By adopting the resolution, the City will maintain compliance with City policies regarding budget transfers and compliance with State restrictions on the use of Public Safety Augmentation Funds.

Important Considerations: None

Decision Record: Previous year’s Resolution 2007-65 approving similar year-end transfers.

Reviewed by:


______________________________ _________________
Rich Guillen, City Administrator Date


CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2008 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING YEAR-END DEPARTMENTAL BUDGET TRANSFERS OF $184,552 AND TRANSFERS OF UNSPENT GRANT REVENUES
($9,337.92) FOR FISCAL YEAR 2007-08 TO COMPLY WITH STATE FINANCIAL RESTRICTIONS
________________________________________________________________________
WHEREAS, year-end budget transfers between departments require City Council approval; and

WHEREAS, any Public Safety Augmentation monies received in fiscal year 2007-08 and not expended should be transferred to the appropriate grants reserve fund and returned to the General Fund for authorized expenditures during the next fiscal year.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Authorize FY 2007-08 budget transfers totaling $184,552 to and from the departments per Exhibit A.

2. Authorize the transfer of Public Safety Augmentation funds of $9,337.92 received in fiscal year 2007-08 and not yet expended from the General Fund to Grants Reserve Fund accounts (50% to Police services account 21-24021-0528 and 50% to Fire services account 21-24021-0476) for future expenditures for public safety as mandated by Proposition 172.

PASSED AND ADOPTED BY THE CITY OF COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 7th day of October 2008, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

_________________________
SUE McCLOUD, MAYOR

ATTEST:


_________________________
Heidi Burch, City Clerk

City of Carmel-by-the-Sea
FY 2007-08 Final Departmental Budget Adjustments
EXHIBIT A
Dept Acct # Description
Transfer
To (From)
Engineering 62051 Professional Svcs $ 3 73
Facilities Maintenance 70026 Utilities $ 6 ,448
Fire Dept 72011 Overtime $ 4 2,305
Fire Dept 72202 Regional Ambulance Subsidy $ 1 08,844
Information Syst 65045 Materials/Supplies $ 3 ,333
Information Syst 65052 Website Services $ 2 ,989
Legal 61034 Documents/Publications $ 1 ,331
Legal 61051 Professional Svcs $ 9 ,635
Public Works 76049 Automotive Maintenance $ 9 ,294
Subtotal - Transfer To $ 1 84,552
Administrative Svcs 67425 Insurance/Risk Management $ (25,082)
Administrative Svcs 67400 Audits $ (1,730)
Administrative Svcs 67017 Medical Program $ (1,109)
Community Plng/Bldg 69010 Salaries & Wages $ (36,889)
Community Plng/Bldg 69016 Retirement $ (24,086)
Community Plng/Bldg 69039 Printing $ (2,915)
Community Plng/Bldg 69040 Advertising $ (6,139)
Forest Pks & Bch 78017 Medical Program $ (3,714)
Police Dept Various Total of line items under budget $ (82,888)
Subtotal - Transfer From $ (184,552)
Grand Total $ -