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HomeMy WebLinkAboutResolution 006-86 RESOLUTION NO 6-86 RESOLUTION OF THE ATASCADERO CITY COUNCIL APPROVING MID-YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 1985- 1986 AND APPROPRIATING FUNDS , THEREFORE BE IT RESOLVED by the Atascadero City Council as follows SECTION 1 Pursuant to the provisions of Resolution 37-84 , Section 3 , which states, "the Council, from time to time, by motion, may approve and authorize the payment of non-budgeted demands from appropriated funds; and may appropriate funds for budgeted or non-budgeted items , and any such appropriation for a non-budgeted item shall constitute an approval to issue a warrant in payment of a property demand or demands therefore" , the attached staff report from the Finance Director dated January 22 , 1986; subject Mid-year Budget Adjustments, is hereby approved as an ammendment to the previously adopted City Budget for the Fiscal Year 1985-1986 SECTION 2 That upon approval of this resolution, the Finance Department is authorized to make the necessary changes to the budget ,, as currently maintained in the City Computer System SECTION 3 This resolution shall become effective and in full force immediately upon its passage On motion by Councilwoman MACKEY and seconded by Council.man HANDSITY the foregoing resolution is hereby adopted in its entirety on the following vote AYES COUNCILMEMBERS HANDSITY, MACKEY, -kMOLINA (see note below) , AND MAYOR NELSON NOES COUNCILWOMAN NORRIS ABSENT NONE #,_,_ 1 f�f ADOPTLD 1/27/86 ROLFE D PELSON, P4ayor ATTEST ROBERT M JONES , City Clerk Councilman Molina requested the record reflect his dissent, for APPROVED AS TO CONTENT reasons of consistency, relating t Recommendation I-A_ (CDBG Appropria _ tion) , for the record, his Yes vot excludes Recommendation I-A in the Al staff report, upon adoption of thi MIC5AIff SHELT N, City Manager resolution r APPROVED AS TO FORM ROBERT M JONES , City Attorney , M_E M_O_R A N_D_U TO City Council THROUGH: Mike Shelton, City Manager FROM David G Jorgensen, Director of Administrative Services SUBJECT Midyear Budget Adjustments DATE January 22, 1986 Recommendations Approve the resolution providing for the following midyear budget adjustments I. General Fund Revenue A. Appropriate revenue from the Community Development Block Grant by $66,500. B. Appropriate as new revenue from the development mitigation tax $150, 000. II. General Fund Expenditures A. Appropriate from the City Council Reserve for contingencies for the following 1. Fire Department Walkie-Talkies - $3, 160 (See attached Report #1) 2. Recreation Department Zoo Marketing Study - $3, 000 (See attached Report #2 Alternate #1) B. Appropriate $51,500 in the Community Development Department to cover the expenditures for the CDBG waterline project (completed) and the audit fees. C . Allow the Recreation Department to shift priorities in the already existing budget to construct a metal workshop building. (See attached Report #3) III. Gas Tax Revenue A. Appropriate $63 , 422 of new revenue from SB300. IV. Sanitation Fund Expenditures A. Appropriate an additional $46 , 372 to the depre- ciation account to agree with the figure in the Audit Report B. Appropriate $4 ,000 for the two IBM personal computers. V. Capital Projects - Revenue Sharing A Allow $18 ,025 to be expended from the $100, 000 already budgeted in the account "Paloma Restrooms" to be used for the completion of Paloma Park (See attached Report #4) -1- �b� Midyear Budget Adjustments (cont. ) Discussion and Analysis- Community Development Block Grant (CDBG) Several years ago the City received approval for a $600,000 grant from the Community Development funds to be used for a Senior Citizen Housing Project. In the fiscal year 1984-1985 $533,500 was spent on land purchase and appraisal. We received a letter dated November 19, 1985 from the State Department of Housing and Community Development reporting the results of a monitoring visit on October 8-9 , 1985. The Finance Department was found to be out of compliance with the reporting standards established by the State. I quote from the report "'The City has not kept financial records which identify the specific use of CDBG funds by activity and cost category by month. The City is now posting CDBG funds to a "grant" account, which includes funds from two of the City' s other grants. The Finance Department does not currently have any budget information regarding this grant. Expenditure reports are not being sub- mitted on a monthly basis as required when receiving cash advances, nor are quarterly expenditure reports showing expenditures by line item being submitted. " They recommended the following "Accounts should be established for CDBG funds by activity and line item. Finance should be provided with copies of the grant agreement and any grant amendments For the balance of this grant, the City shall submit monthly expenditure reports to the State which can be reconciled with the City' s official financial records, and which can be supported with externally supported documentation. Documentation shall include timesheets for the staff charging time to the grant By appropriating this in our budget we are establishing the first step in the budgetary controls to meet the terms and conditions of the grant. We have asked for a new revenue appropriation to track revenues received and a new expenditure appropriation to track expenses incurred in the Block Grant activities . Development Mitigation Tax This is the fifty cents ( 50) per square foot on new construction tax that went into effect in October 1985 This was left out of the original budget VAW which the Council adopted in August 1985 . By appropriating -2- 2b2 Midyear Budget Adjustments (cont. ) the funds at this time we will be able to offset projected deficits in other revenue accounts. It should not be assumed that these new revenues can be used for additional expenditures in this fiscal year but may be looked at again during the 1986-1987 fiscal year budget submittal. Council Contingency This was established by the Council in the event that unanticipated needs arose within the departments ' operations before the end of the 1985-1986 fiscal year The Council allocated $33 ,800 to be set aside for this purpose. We are recommending that $6 ,160 be used to fund special circum- stances which have arisen at this time. (See Department Reports #1 & #2) SB300 This is a new funding source allocated by the State in order to allow cities to do more road and street main- tenance. We are eligible to receive approximately $172,000 through fiscal year 1986-1987 While we recommend adjusting the current budget to receiie the revenue we do not recommend expending that revenue until the 1986-1987 fiscal year By combining both years revenue will be able to complete a more comprehensive maintenance program Depreciation - Sanitation This is the first year the City has budgeted for depreciation of the Sewer Plant fixed Assets. The amount contained in the adopted budget was an estimate. When the Auditors finished their audit we had a more accurate figure for depreciation. This adjustment is to use the Auditors ' figure for the Depreciation Expense. IBM Computers With the completion of the Sewer Study, the City received from the consultant computer information that is compatible with the IBM equipment. In order for this information to have any future value to the city it is necessary to have the IBM equipment available to process the data Engi- neering has requested the purchase of 2 IBM personal computers that will have the capability of retrieving and processing the sewer information. Paloma Park Paloma Park is scheduled to open in the Spring of 1986. Without the expenditure of the $18, 025 the Park will not open by this date. This is not a request for additional funds but for the use of the funds already allo- cated by the Council for the Paloma Park Restrooms A shift in priorities is demanded due to the projected completion date of the park and the unavailability of any other funding source to cover the completion costs. (See Department Report #4) Metal Building Once again this is not a request for additional funds but for the redirection of already budgeted funds to a higher priority. (See Department Report #3) -3- ,0 � 3