Loading...
HomeMy WebLinkAboutAGENDA REPORT 1990 0620 CC REG ITEM 11OBERNARDO M. PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tern ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk MOORPARK ITEM TO: HONORABLE CITY COUNCIL FROM: RICHARD HARE, DEPUTY CITY DATE: JUNE 15, 1990 SUBJECT: YEAR END BUDGET AMENDMENTS BACKGROUND: MANAG STEVEN KUENY City Manager CHERYL J.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer •• CALIFORNA • of 1990 ACDON: i/ i -lone uiry,s current budgetary practice recognizes the periodic need to adjust budget estimates and appropriations at different levels. The City's budget is organized around Funds which are further divided into departments. Within each department are the three general expenditure categories of personnel expenditures, operations & maintenance expenditures, and capital expenditures. The budget for purposes of desciption, detail, and accounting control is broken down further into line items and in the case of capital expenditures the line items are subdivided further to identify specific purchases or projects. Generally accepted accounting principles which govern appropriate accounting practices for municipalities, per the City's auditor, recognizes the fund level as the appropriation level for the City's budget. In practice the City has been more restrictive and the appropriation level requiring City Council authorization for transfers has been the departmental category level. At the very basic level for the purposes of maintaining control of expenditures, accurately accounting for the purpose of the expenditure and appropriately describing expenditures the City Manager has the limited authority to transfer appropriations between line items within the budget categories of personnel and operations & maintenance. For an example, if a position is vacant and part time help must be relied upon to carry out the duties of the position the City Manager could transfer appropriations from line item 502 to line item 503 to more accurately describe the expenditure. 799 Moorpark Avenue Moorpark California 93021 -- _— (805) 529 -6864 The City Manager's authority is more resticted in the capital outlay category. Within capital outlay the City Manager is restricted to transferring appropriations within a line item. For an example; if under the line item 905 office equipment funds were budgeted for the purchase of equipment to set up a work area such as a typewriter and a filing cabinet, and the typewriter was fifty dollars more than estimated and the cabinet was fifty dollars less, the City Manager has the budgetary authority to transfer appropriations between sub -line items and proceed with the purchase. In the event, the City Council directs or authorizes actions or purchases which exceed prior appropriation authorizations and transfers are required which exceed the City Manager's authority, then the City Council prior to the year end closing of the budget should take formal action recognizing the expenditures and adjusting the appropriations accordingly. Staff is preparing a schedule of expenditures for this purpose. This schedule is not complete and is pending the last warrant register processing and receipt of invoices from some of the City's vendors. It should be ready for City Council review and action by the planned June 27, 1990 adjourned meeting. RECOMMENDATION• Continue this item until the adjourned City Council meeting of June 27, 1990.