CITY COUNCIL: Resolution Authorizing $244,048 in Year-End Departmental Budget Transfers & $7,659.73 Transfer in Unspent Grant Revenues for FY 2009/10

Meeting Date: November 2, 2010
Prepared by: Laura Dadiw

City Council
Agenda Item Summary

Name: Consideration of a Resolution authorizing $244,048 in year-end departmental budget transfers and a $7,659.73 transfer in unspent grant revenues for fiscal year 2009/10 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 2009/10, to the appropriate grant fund accounts. This Resolution authorizes the FY 2009/10 year-end departmental budget transfers and authorizes transferring unspent Public Safety Augmentation funds received in FY 2009/10 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 2009/10, 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 may be made to cover the expenditure budget overages. 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 33-24021-0528 for Police Services, with a current
balance of $14,649.04; and Account 33-24021-0476 for Fire Services, with a current balance of $16,519.23.

In FY 2009/10, the City received $7,659 in new Public Safety Augmentation Funds.

Staff recommends that 50% of the monies be transferred to Police Services Account 33-24021-0528 and the other 50% to Fire Services Account 33-24021-0476 for future public safety expenditures.

Staff Recommendation: Adopt the Resolution to authorize the FY 2009/10 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 2009-67(October 6, 2009), which approved similar year-end transfers.

Reviewed by:


______________________________ _________________
Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING YEAR-END DEPARTMENTAL BUDGET TRANSFERS OF $244,048 AND TRANSFERS OF $7,659.73 IN UNSPENT GRANT REVENUES FOR FISCAL YEAR 2009/10 TO COMPLY WITH STATE FINANCIAL RESTRICTIONS
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WHEREAS, year-end budget transfers between departments require City Council
approval; and

WHEREAS, any Public Safety Augmentation monies received in fiscal year 2009/10 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 2009/10 budget transfers totaling $244,048 to and from the
departments per Exhibit “A”.

2. Authorize the transfer of Public Safety Augmentation funds of $7,659.73
received but not spent in fiscal year 2009/10 from the General Fund to Grants
Reserve Fund accounts (50% to Police Services Account 33-24021-0528 and 50% to Fire Services Account 33-24021-0476) 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 2nd day of November, 2010, by the following roll call vote:

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

SIGNED:

_________________________
Heidi Burch, City Clerk

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ATTEST: SUE McCLOUD, MAYOR