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AGENDA ITEM REVIEW FORM |
6.K.
Regular City Council Meeting
- Meeting Date:
- 03/23/2022
- Department Head:
- Monica Castro
- Submitted By:
- Roula Encinas, Accountant, Finance Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any all matters regarding authorization to reallocate FY 2022 budget capacity to projects requested in FY 2023 Budget, to use NON ARPA funds for projects in the ARPA list and to waive the procurement code as allowed under San Luis Purchasing Code Section 3.05.010 (F) for purchases exceeding the $45,000 threshold. (Monica Castro, Director of Finance)
SUMMARY:
We had our budget reviews last week. After reviewing the budget requests from all departments, we have 30 million in capital projects, which is 18 million more than last year.
This fiscal year, we experienced delays in completing projects due to COVID, supply chain, and labor shortages. We have at least $7,000,000 in projects that will not be completed in FY 2022. This situation has created budget capacity in this fiscal year but at the same time has put a lot of weight into next year's budget as many of these incompleted projects we need to include in FY 2023. It also puts the City over our expenditure limitation set by state statute for next year.
As part of our budget strategy and effectively use the resources of the City, we are requesting council approval as follows:
This fiscal year, we experienced delays in completing projects due to COVID, supply chain, and labor shortages. We have at least $7,000,000 in projects that will not be completed in FY 2022. This situation has created budget capacity in this fiscal year but at the same time has put a lot of weight into next year's budget as many of these incompleted projects we need to include in FY 2023. It also puts the City over our expenditure limitation set by state statute for next year.
As part of our budget strategy and effectively use the resources of the City, we are requesting council approval as follows:
- To reallocate the budget capacity from projects that will not be completed this year to projects that can be completed this year. Most of these projects are requested in next year's budget and are critical for the City. We will be matching Budget 2022 with the requests in Budget 2023 that we can make this year.
- To use NON-ARPA fund budget for projects in the ARPA list that can be completed this year. Utilizing NON-ARPA funds this year will give us maximum expenditure capacity for next year since ARPA fund expenditures are excluded from the expenditure limitation threshold. We will reallocate ARPA funds to next year's budget as the council direct us during the budget retreat session.
- To waive Procurement code as allowed under San Luis Purchasing Code Section 3.05.010 (F) only for purchases exceeding the $45,000 threshold.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE BUDGET TRANSFER UP TO $ TO COMPLETE IN FY 2022 PROJECTS REQUESTED IN FY 2023 BUDGET, TO USE NON ARPA FUNDS FOR PROJECTS IN THE ARPA LIST, AND TO WAIVE THE PROCUREMENT CODE FOR PURCHASES EXCEEDING $45,000 AS ALLOWED UNDER SAN LUIS PURCHASING CODE AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- 2,500,0000
- BUDGETED AMOUNT:
- See fiscal impact stmt
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We are requesting Council approval to do budget transfers to complete in FY 20222 projects requested in FY 2023 budget. We estimate projects will not go over $2,500,000