TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kacey Duncan, Deputy City Manager
SUBJECT:
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Transfer of FY 2016-17 budget appropriations.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
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ISSUE:
Shall the City Council adopt Resolution No. 2017-39, authorizing transfer of appropriations within the City budget in order to maintain compliance with Oregon budget law?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2017-39, authorizing transfer of appropriations within the City budget in order to maintain compliance with Oregon budget law.
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SUMMARY AND BACKGROUND:
State law allows the City Council to approve transfers of budget authority within the appropriation limits established by the Budget Committee for each fund. The transfer resolution includes changes to the approved budget. Resolution No. 2017-39 transfers $70,000 of appropriation authority for the FY 2016-17 budget to maintain compliance with Oregon budget law. The City’s FY 2016-17 budget for all funds totals $539,520,320. The General Fund is $137,861,290.
FACTS AND FINDINGS:
Fund 101, General Fund, Human Resources Department
Due to the volume of recruitments, particularly in public safety services, the Human Resources Department has incurred additional expense for tests and evaluations. A $25,000 appropriation transfer from General Fund contingency to materials and services in the Human Resources Department cost center will ensure budgetary compliance.
General Fund
Non Departmental, Contingency, 101-60961000-61110 - $25,000
Human Resources, Materials and Services, 101-15101000-52670 - $25,000
Fund 156, Streetlight Fund, Public Works Department
An additional $25,000 is required to increase budget authority in the materials and services category to support expenditures for electricity. Electricity is $1.3 million of the fund’s $2.4 million budget. In FY 2016-17, funds were appropriated for pole installations and transfers for capital projects in anticipation of energy savings from the LED relamping project. With the implementation delay for the lighting analysis, the anticipated level of electricity cost savings may not be achieved.
A $25,000 appropriation transfer from the Streetlight Fund contingency to materials and services will ensure budgetary compliance. If the additional $25,000 is not needed by June 30, 2017, it will accrue in ending working capital for the Streetlight Fund.
Streetlight Fund
Contingencies, 156-58801000-61110 - $25,000
Materials and Services, 156-58801000-53620 - $25,000
Fund 320, Emergency Medical Services (EMS) Fund
In FY 2016-17 the Salem Fire Department experienced higher than anticipated write-offs for pre-hospital treatment and transport services provided and billed by the department. Ambulance transports are provided by the department when all Falck ambulances are in-service and unable to respond. The additional write-off expenses are due to the increased number of incidents where the patient is covered by Medicare and Medicaid. Medicare and Medicaid allow for limited reimbursement based on a set fee schedule, all remaining charges must be written off.
A $20,000 appropriation transfer from EMS Fund contingency to materials and services will ensure budgetary compliance. If the additional $20,000 of appropriation authority is not needed by June 30, 2017, it will accrue in ending working capital for the EMS Fund. The EMS Fund budget is $783,900.
Emergency Medical Services Fund
Contingencies, 320-37401000-61110 - $20,000
Materials and Services, 320-37401000-53770 - $7,000
Materials and Services, 320-37401000-53771 - $3,000
Materials and Services, 320-37401000-53772 - $7,000
Materials and Services, 320-37401000-53773 - $3,000
Kelley Jacobs
Budget Officer
Attachments:
1. Resolution No. 2017-39, Year End Transfers