2.01.009_Appropriations Amendment Pilot ProjectPolicy #: 2.01.009
Type: City Council
Effective Date: 2014
Former Policy #: 415.38
RESOLUTION NO. 2015-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
AUTHORIZING AND APPROVING THE CITY MANAGER AND FINANCE
DIRECTOR TO IMPLEMENT AN APPROPRIATIONS AMENDMENT PILOT
PROJECT INCORPORATED AS EXHIBT A
WHEREAS, the City of Rohnert Park, annually adopts a budget; and the City Council has
the authority to authorize amendment of the budget; and
WHEREAS, the City Council previously adopted Policy Number 415.38 via Resolution
2014-44, which defined the level of budgetary control and delegated authority for certain transfers
and revisions to the adopted budget; and
WHEREAS, the City Council adopted the policy with the intent of being more efficient; and
WHEREAS, the City of Rohnert Park audit for FY 2013-14 was issued in December 2014
by the City's auditor, Macias, Gini, and O'Connell; and
WHEREAS, the management letter provided by the auditor noted an issue with regard to the
City's budgetary controls over expenditures in the General Fund; and
WHEREAS, the auditor noted that upon initial set up of the City's budget in the general
ledger, actual costs can exceed budgeted amount per expense line item category, and this comment
was based on their review and application of the City's current policy; and
WHEREAS, the Finance Department has a current staffing shortage of two vacant positions,
and it is desirous to be as efficient as possible while addressing the auditor's interpretation of our
current policy; and
WHEREAS, staff is proposing a pilot project that would change the overall level of control
to the department level and address certain items not previously addressed in the FY 2014-15 Budget
that will be included in the FY 2015-16 Budget.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Rohnert
Park that it does hereby authorize and approve the City Manager and Finance Director to implement
the Appropriations Amendment Pilot Project incorporated as Exhibit A.
DULY AND REGULARLY ADOPTED this 24'h day of March, 2015.
ATTEST:
Clerkl.J Anne �MBuJ yler, City
CITY OF ROHNERT PARK
Al
Amy O. Ahanotu, Mayor
CALLINAN PrIQ MACKENZIE: IN-jg-7 _STAFFORD: P BELFORTE ME AHANOTU: iaFt
AYES: ( 5 ) NOES: ( 0 ) ABSENT: 0 ) ABSTAIN: ( 6 )
WREXHIBIT A
CITY OF ROHNERT PARK
APPROPRIATIONS AMENDMENT PILOT PROJECT
PURPOSE:
To define the level of budgetary control and appropriation transfer authorities for all entities
under the direction of the Rohnert Park City Council. This project describes the level of authority
needed to amend the adopted budget.
APPROPRIATIONS AMENDMENT PILOT PROJECT:
City Council approves except as noted:
• Increases in appropriations from unanticipated revenues or fund balance/retained
earnings within a department or fund. (Existing Policy)
• Transfers of appropriations between funds, departments, or program budgets. (Existing
Policy)
• Decreases in appropriations, with the exception that the City Manager may direct
Department Heads to suspend expenditures as needed to respond to emerging negative
fiscal conditions. (Existing Policy)
City Manager or Designee approves as follows:
• Without increasing overall appropriations, the City Manager (or designee) would have
authority to allow spending to exceed an individual line item, up to the amount of the
overall budget for a similar category such as salaries/benefits or services/supplies.
• Without increasing overall appropriations, the City Manager would have unlimited
authority for adjustments between categories or program budgets within a department.
• Without increasing overall appropriations, the City Manager would have authority to
move City Manager contingency funds to the appropriate department for expenditure in
accordance with GAAP.
• Without increasing overall appropriations, the City Manager would have authority to
move appropriations between General Fund departments up to 1% of the Adopted Budget
($310,300 FY 2014-15)
• City Manager/Finance Director would have the authority to appropriate developer
deposits for expenditure. This type of work is already happening, using a non -GAAP
process. This would be only for cost reimbursement projects where developers are
providing funds for staff services. Contracts over $50,000 would be approved by City
Council in accordance with the City's purchasing policy.
• City Manager/Finance Director would have the authority to estimate and appropriate
anticipated developer fees for Specific Plans. This type of work is already happening,
using a non -GAAP process. These costs are fully reimbursed to the City based on
existing agreements. Contracts over $50,000 would be approved by City Council in
accordance with the City's purchasing policy.
• Without increasing overall appropriations, the City Manager would have the authority to
best implement Capital Improvement Projects, by transferring appropriations and revenue
sources between projects.
• Finance Director would have the authority to carry forward to FY 2015-16 certain
appropriations remaining at the end of the fiscal year. These would include amounts
legally encumbered at the end of FY 2014-15, and any unspent appropriations for Capital
Projects or Equipment that will be needed in the next fiscal year to fund the project or
purchases that were delayed.
• City Manager would have authority to suspend expenditures as needed to respond to
emerging negative fiscal conditions. (Existing Policy)
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