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HomeMy WebLinkAbout2016-05-02-J01P Budget Carryover PolicyWaukee E■Y r THE KEY TO GOOD LIVING AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: May 2, 2016 AGENDA ITEM: Consideration of approval of a resolution approving City of Waukee Budget Carry Over Policy FORMAT: Resolution SYNOPSIS INCLUDING PRO & CON: The City currently does not have a formal budget carry over policy. The national Governmental Finance Officers Association (GFOA) recommends several policies be approved for municipal entities, including a budget carry over policy. The attached policy was drafted from the current policies adopted by Clive, Urbandale, Ankeny, West Des Moines and Johnston as well as the recommended language from GFOA. FISCAL IMPACT INCLUDING COSTIBENEFIT ANALYSIS: COMNIISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: . RECOMMENDATION: Staff would recommend the approval of the financial policy. ATTACHMENTS: PREPARED BY: REVIEWED BY: I. General Financial Policy II. Proposed Resolution Linda Burkhart �� PUBLIC NOTICE INFORMATION — NAME OF PUBLICATION: DATE OF PUBLICATION: THE CITY OF WAUKEE, IOWA RESOLUTION APPROVING CITY OF WAUKEE FINANCIAL POLICY — BUDGET CARRY OVER POLICY, OF THE STANDARD ADMINISTRATIVE POLICY AND PROCEDURES MANUAL IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Iowa is a duly organized municipality within Dallas County; AND, WHEREAS, the Waukee City Council shall approve operating policies and procedures; AND, WHEREAS, City staff has presented the City Council with a Budget Carry Over Policy, attached hereto as Exhibit A, and recommends approval. NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session this 2"d day of May, 2016, that the City of Waukee Financial Policy — Budget Carry Over Policy, of the Standard Administrative Policy and Procedures Manual is hereby approved. William F. Peard, Mayor Attest: Rebecca D. Schuett, City Clerk ROLL CALL VOTE AYE NAY ABSENT ABSTAIN Shane Blanchard Brian Harrison Shelly Hughes Larry R. Lyon Rick Peterson ►,lk Waukee - THE KEY TO GOOD LIVING Standard Administrative Policy & Procedures Manual Title: FINANCIAL POLICY Date of Version: May 2, 2016 Section: BUDGET CARRYOVER POLICY Resolution No.: #16- SECTION 1 — Policy 1. All appropriations carried forward from one fiscal year to the next fiscal year must be approved by the City Administrator 2. The appropriation must be for an item or service specifically listed in the requesting department's budget. Appropriations for regular and ordinary operating expenditures may not be carried forward. Purchases of items and services not listed in the requesting department's budget are not eligible for carryover. 3. The amount of the appropriation may not be lower than the lesser of a) one percent (1%) of the activity's budget, or b) $2,500. 4. All appropriations to be carried forward are contingent upon adequate and available resources and fund balance. 5. Invoices and payments to vendors should not be manipulated, delayed, postponed, split, prepaid, incorrectly billed, or otherwise in order to manipulate and control budget expenditures. 6. The spend down of budget appropriations at fiscal year-end should be avoided in order to prevent problems in cash flow, budget monitoring, and potentially wasteful spending. SECTION 2 — Procedures The following procedures should be completed prior to June 30: 1. A memo requesting budget appropriations to be carried forward to the next year should be submitted to the Finance Department. The memo should include a list of all appropriations to be carried forward by the department, the activity and account they are budgeted in, and the justification for carrying the items forward. 2. The Finance Department will review the requests to determine if the items qualify for carry forward and if funds are available to cover the expenditures. 3. The Finance Department will summarize the requests along with recommendations for approval or denial to the City Administrator. 4. The City Administrator will approve or deny the carry forward requests and return the results to the Finance Department. Each requesting department will then receive a notice of the result of their requests. 5. New fiscal year budgets will then be modified to include the appropriation amounts carried forward and will be included in the revised budgets during the budget amendment process.