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AGENDA ITEM REVIEW FORM |
7.C.
Regular City Council Meeting
- Meeting Date:
- 04/12/2023
- 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 2023 budget capacity to projects requested in FY 2024 Budget, and to waive the procurement code as allowed under San Luis Purchasing Code Section 3.05.010 (F) for purchases exceeding the $45,000.00 threshold. (Monica Castro, Director of Finance)
SUMMARY:
After concluding the department budget reviews, and reviewing the budget requests from all departments, we have 50.6 million in capital projects, which is 22.6 million more than last year.
This fiscal year, we experienced delays in completing projects due to supply chain, and labor shortages. We identified at least $2,000,000 in projects that will not be completed in FY 2023. This situation has created budget capacity in this fiscal year, but at the same time has put weight into next year's budget as many of these non-completed projects need to be rolled over in FY 2024. We are currently 4 million over the city's expenditure limitation set by state statute for next year.
As part of our budget strategy to reduce the expenditures for next year and effectively use the resources of the City, we are requesting council approval:
This fiscal year, we experienced delays in completing projects due to supply chain, and labor shortages. We identified at least $2,000,000 in projects that will not be completed in FY 2023. This situation has created budget capacity in this fiscal year, but at the same time has put weight into next year's budget as many of these non-completed projects need to be rolled over in FY 2024. We are currently 4 million over the city's expenditure limitation set by state statute for next year.
As part of our budget strategy to reduce the expenditures for next year and effectively use the resources of the City, we are requesting council approval:
- To reallocate the budget capacity from projects that will not be completed this year to projects requested in next year's budget 2024 that can be completed this year. Most of these projects are requested in next year's budget FY 2024 and are critical for the City.
- To waive the formal purchasing procedures as allowed under San Luis Purchasing Code Section 3.05.010 (F) to facilitate the procurement process and ensure items arrive before the end of the fiscal year.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE BUDGET TRANSFER AS PRESENTED IN THE BUDGET TRANSFER DETAIL FORM IN THIS AGENDA ITEM TO COMPLETE IN FY 2023 PROJECTS REQUESTED IN FY 2024 BUDGET, AND TO WAIVE FORMAL PROCEDURES FOR THE GOOD CAUSE PRESENTED AS ALLOWED UNDER SAN LUIS PURCHASING CODE.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- YES
- TOTAL:
- $1,924,277
- BUDGETED AMOUNT:
- See fiscal impact statement
- 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 have budget capacity in the East Community Park and Well site 5 projects. We are asking council authorization to do a budget transfer as requested in the budget transfer detail form presented with this item.