SR-202-001 (51)
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Councll Mtg: 7/10/84
santa~nica, Callfornla
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JilL 1 0 lJB4
TO: Mayor and City council
Parking Authority
FROM: City Staff
SUBJECT: Technical Amendments to the 1984-85 Budget
INTRODUCTION
As a further step towards ~ncreas~ng the City's compllance wlth
natlonal accounting standards, lt is requested that City Council
approve the reapproprlatlon in 1984-85 of certain funds encum-
bered in 1983-84 enterprlse funds accounts for capital proJects
and for the Cable program. In additlon, it lS requested that a
position reclassification which was inadvertently offiltted from
the Police Department's position allocations for 1984-85 be
authorlzed.
REAPPROPRIATION OF CAPITAL PROJECT ENCUMBRANCES
With adoption of the 1984-85 Budget, reapproprlations were au-
thorlzed for unencumbered balances of capital proJects. This
actlon allows continued expenditures for capltal projects to the
levels budgeted ln 1983-84. The budget resolutlons authorlzing
these reappropriations dld not reflect the funds already encum-
bered for capital projects, since 10 the past, these encumbrances
have been carried on the City's flnance system as "prlor year
accounts."
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Encumbrances are made to ensure that funds are avallable to meet
existing contractual obligatlons. The funds proposed for reap-
propriatlon are an obllgatlon of the City WhlCh wlll be paid even
if Clty Council does not approve the recommendations of this
staff report. The effect of thlS reappropriatlon action is only
to change how obllgatlons which overlap fiscal years are shown on
the Clty'S flnancial statements for enterprlse funds.
The Finance Dlrector recommends that the accounting practlces for
enterprise funds be modlfied to eliminate the use of "prior year
accounts" for encumbrances outstanding at the end of the flscal
year. This change supports the preparation of flnanclal state-
ments for enterprlse operations WhlCh are more equivalent to
their prlvate sector counterparts. It 1S necessary to reap-
propriate encumbered funds ln enterprlse funds ln order to accom-
pllSh thlS accounting change. Such a change would brlng the
Clty'S financlal statements more into compliance wlth natlonally
accepted accountlng standards.
REAPPROPRIATION OF CABLE FUND BALANCE
Slnce the Cable Fund is an enterprise fund, the Finance Director
prefers that 1983-84 encumbrances be reappropriated rather than
carried as prior year accounts. The rat10nale for this approach
is the same as for the above reappropriatlon of cap1tal proJects
except that the 1983-84 budget for Cable 1S for operating pur-
poses. Therefore, it is requested that the est1mated remalnlng
balance of $6,600 of the 1983-84 Cable budget be reappropr1ated.
These funds are to be util1zed in order to prov1de funds for com-
pletlon of the work of the Cable Task Force. Expendltures may
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~nclude preparat10n and printing of the flnal report and consul-
tant services needed for chart1ng the future direct10n of the
Clty's efforts relat1ve to Cable policy definit1on.
POSITION RECLASSIFICATION
Durlng 1984-85 budget preparation, the Pollee Department proposed
reclassif1cat1on of an Administrative Analyst pos1t1on 1n the
Administrat2ve SerVlces Div2s2on to reflect the level of dut1es
performed by the 2ncumbent and requ2red to support the depart-
ment. The Personnel Department analyzed the Job and recommended
upgrading the posit1on to Senlor Adm1nistrative Analyst. The
City Manager approved the change and funds to support the upgrad-
ing were included 1n the proposed budget for 1984-85. However,
the personnel change was inadvertently omitted from the positlon
summary presented 1n the budget. Therefore, It 1S now requested
that th1S reclassif1cation be approved in order to provide the
incumbent wlth the title and compensat1on approprlate for the Job
being performed.
BUDGET/FINANCIAL IMPACT
Reappropr2at2on for encumbrances in capital projects and for the
Cable program would increase the total fund approprlatlons by an
amount not to exceed the followlng:
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FUNDS
REAPPROPRIATION
NOT TO EXCEED
Water
Refuse
Pier
Sewer
C1V1C Aud1torium
Transportatlon
Parking
$ 590,646
384,136
392,537
172,000
46,900
2,873,424
13,073
Subtotal-Capital
$4,472,716
Cable
6,600
Grand Total
$4,479,316
SpeclflC dollar amounts for reappropriat1ons of encumbrances will
be reported to City Council after the annual flnancial audit is
completed th1S Fall.
There is no budget impact for the position reclassification
proposed.
RECOMMENDATIONS
I} It lS recommended that the C1ty Council authorlze the dele-
tlon of one Administrative Analyst and the addltion of one
Senior Admin1stratlve Analyst 1n the Police Department, Ad-
ministratlve Servlces Dlv1sion.
2) It is recommended that the C1ty Council reappropr1ate funds
not to exceed the amounts speclfled above as an amendment to
the FY 1984-85 budget.
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3) It is recommended that the Parking Author1ty reappropr1ate
funds not to exceed the amounts specif1ed above as an amend-
ment to the FY 1984-85 budget.
Prepared By: Lynne C. Barrette
Deputy City Manager
Meganne Steele
Budget D1rector
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