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CC - Item 3F - Interim Budget AmendmentsROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER 0 DATE: MAY 28, 2013 SUBJECT: INTERIM BUDGET AMENDMENTS SUMMARY During the fiscal year financial needs and opportunities may arise which require Council approval of amended appropriations. Without them various auditors could make an adverse finding in the annual audit reports. Additionally, our Consolidated Annual Financial Report provides a comparison of budget verses actual, and providing regular updates to the budget to demonstrate that careful oversight of the budget has been undertaken is important for transparency and sound financial practice. At this time there are a couple budget clean -up items that need to be made to adjust for expenditures that were unanticipated in the original budget. The adjustments are for projects or services that have been previously approved by the City Council. A detailed explanation of each adjustment is provided in the Analysis section of this report. Staff Recommendation Staff recommends that the City Council approve Resolution No. 2013 -21 "A Resolution of the City of Rosemead Approving Various Appropriations." ANALYSIS Appropriations provide the authority for a government to spend money. In their absence the City's auditors may make an adverse finding which could contribute to a qualified audit opinion, a circumstance that is certainly unwanted. • The City Council approved the use of $75,000 of General Fund reserves to serve as grant matching funds for fitness zone installations on February 28, 2012. Since the project was not completed until the 2012 -13 Fiscal Year, a budget amendment must be recorded to amend the current budget. In order to complete several necessary Capital Improvement Projects, the cost of operating the Rosemead Explorer and Dial -A -Ride services has been shifted to Prop. A in the current fiscal year. The original budget split the cost between Prop. ITEM NUMBER: �� City Council Meeting May 28, 2013 Page 2 of 2 A and Prop. C and a budget adjustment is necessary to transfer the budget between funds. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: Matthew E. Hawkesworth Assistant City Manager /Finance Director Attachment: Resolution No. 2013 -21 "A Resolution of the City of Rosemead Approving Various Appropriations" RESOLUTION NO. 2013 -21 A RESOLUTION OF THE CITY OF ROSEMEAD APPROVING VARIOUS APPROPRIATIONS WHEREAS, appropriations are the legal authority for a City to spend its funds; and WHEREAS, from time to time it is necessary to amend the budget with additional appropriations; and WHEREAS, purchases charged to the line items requiring additional appropriations have received prior City Council approval. NOW THEREFORE, $75,000 is appropriated in the General Fund for Expenditures: Expenditures $75,000 101- 3030 -5940 Fitness Zones The Proposition A Fund $580,000 (215- 3040 -5470) allocation for the Rosemead Explorer and Dial -A -Ride program. The Proposition C Fund $580,000 (220- 3040 -5470) reduction for the Rosemead Explorer and Dial -A -Ride program. The additional appropriation is made a part of the approved FY 2012 -13 Budget as though it were a part of the initial approved budget fully set forth and the City Manager is authorized and empowered to expend such sum for the purpose of such account, but with no expenditure by any office or department for any item within an account shall exceed the amount budgeted therefore without prior written approval of the City Manager. PASSED, APPROVED and ADOPTED this 28"' day of May 2013. Polly Low, Mayor r_02r:101N Gloria Molleda, City Clerk