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AGENDA ITEM REVIEW FORM |
7.B.
Regular City Council Meeting
- Meeting Date:
- 03/27/2024
- Department Head:
- Roula Encinas
- Submitted By:
- Roula Encinas, Acting Director of Finance, Finance Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any all matters regarding authorization to reallocate Fiscal Year 2024 budget capacity to projects staff requested in the Fiscal Year 2025 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. (Roula Encinas, Acting Director of Finance)
SUMMARY:
After concluding the department budget reviews, and reviewing the budget requests from all departments, we identified at least $6,980,000.00 in projects that will not be completed in FY 2024.
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 2025. We are currently $18 million over the city's expenditure limitation set by state statute for next year.
As part of our budget strategy to reduce next year's expenditures and effectively use the City's resources, we are requesting Council approval for the following:
- To reallocate the budget capacity from projects that will not be completed this year to projects requested in next year's budget 2025 that can be completed this year and are critical for the city.
- To ratify the purchase orders already initiated for the following items, ensuring they arrive before the end of the fiscal year:
- Professional Services for the Domain Controller Server Upgrade at a cost of $9,430.00
- Submersible Pumps LS300 & LS Merrill at a cost of $101,000.00
- Allen Bradley VFDs at a cost of $60,000.00
- Police Vehicle at a cost of $83,010.00
- To waive the formal purchasing procedures as allowed under San Luis Purchasing Code Section 3.05.010 (F) for purchases exceeding the $45,000.00 threshold 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 FISCAL YEAR 2024 FOR PROJECTS STAFF REQUESTED FOR FISCAL YEAR 2025 BUDGET, AND TO WAIVE THE FORMAL PROCEDURES FOR THE GOOD CAUSE PRESENTED AS ALLOWED UNDER SAN LUIS PURCHASING CODE ; ADDITIONALLY, TO RATIFY THE PURCHASE ORDERS ALREADY INITIATED FOR ITEMS NECESSARY FOR CITY SERVICES ENSURING THEIR ARRIVAL BEFORE THE FISCAL YEAR'S END.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- YES
- TOTAL:
- $5,102,670.00
- 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 for projects that will not be completed in this fiscal year. We are requesting council authorization for a budget transfer, as detailed in the attached budget transfer form, to provide the total amount of $5,102,670.00 needed to complete these projects and purchase the items expected to be completed by June 30, 2024.