CITY COUNCIL: Resolution Authorizing $342,242 Year-End Departmental Budget Transfers & $8,223.80 Transfer in Unspent Grant Revenues for FT 2008/09

Meeting Date: October 6, 2009
Prepared by: Joyce Giuffre, Admin. Services Director

City Council
Agenda Item Summary

Name: Consideration of a Resolution authorizing $342,242 in year-end departmental budget transfers and an $8,223.80 transfer in unspent grant revenues for fiscal year 2008/09 to comply with state financial restrictions.

Description: City policies require that City Council approve year-end budget transfers between departments. Council also must approve transferring grant revenues received, but unspent by the end of fiscal year 2008/09, to the appropriate grant fund accounts. This Resolution authorizes the FY 2008/09 year-end departmental budget transfers and authorizes transferring unspent Public Safety Augmentation funds received in FY 2008/09 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, a report highlighting department budget to actual expenditure is reviewed. If necessary, transfers of budget monies within a department are made from one line item to another. For fiscal year 2008/09, department line item budget overages were covered by unspent monies from other line items within the same department, except for the departments listed in the top portion of attached Exhibit “A”.

Transfers from other departments and from the Workers Compensation Reserve Fund may be made to cover the expenditure budget overages. With the exception of the transfer from the Workers Compensation Reserve fund, these transfers do not increase the total General Fund expenditures budget. Rather, they shift monies from one line item to another.

Public Safety Augmentation Funds - $8,223.80
Proposition 172 mandates that 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, with a current balance of $12,268.54; and Account 21-24021-0476 for Fire Services, with a current balance of $10,955.78.

In FY 2008/09, the City received $8,223.80 in new Public Safety Augmentation Funds.
Staff recommends that 50% of the monies be transferred to Police Services Account 21-24021-0528 and the other 50% to Fire Services Account 21-24021-0476 for future public safety expenditures.

Staff Recommendation: Adopt the Resolution to authorize the FY 2008/09 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 complies with both City policies regarding budget transfers and with State restrictions on the use of Public Safety Augmentation Funds.

Important Considerations: None

Decision Record: Resolution 2008-70 (October 7, 2008), which approved similar year-end transfers.

Reviewed by:

______________________________ _________________
Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2009 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING YEAR-END DEPARTMENTAL BUDGET TRANSFERS OF $342,242 AND TRANSFERS OF $8,223.80 IN UNSPENT GRANT REVENUES FOR FISCAL YEAR 2008/09 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 2008/09 but 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 2008/09 budget transfers totaling $342,242 to and from the departments per Exhibit “A”.

2. Authorize the transfer of Public Safety Augmentation funds of $8,223.80 received but not spent in fiscal year 2008/09 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 6th day of October 2009, 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 2008-09 Final Departmental Budget Adjustments
EXHIBIT A
Dept Acct # Description
Transfer To (From)
Legal 61034 Documents/Publications $ 1 ,223
Legal 61051 Professional Svcs $ 3 22,898
Information Syst 65045 Materials/Supplies $ 5 ,256
Administrative Services 67424 Workers Comp-Self Funded Claims $ 1 2,865
Subtotal - Transfer To $ 3 42,242
Administration 64051 Professional Services $ ( 10,967)
Administrative Svcs 67010 Salaries $ ( 38,266)
Administrative Svcs 67053 Contractual Services $ ( 12,732)
Community Plng/Bldg 69051 Professional Services $ ( 81,681)
Police Department 74010 Salaries $ ( 55,669)
Police Department 74011 Overtime $ ( 62,287)
Public Works 76010 Salaries $ ( 19,815)
Public Works 76055 Storm Water Runoff Program $ ( 27,960)
Community Services 82010 Salaries $ ( 20,000)
Workers Comp-Self Funded 17-10007 Workers Compensation Reserve $ ( 12,865)
Subtotal - Transfer From $ (342,242)