CITY OF POMONA
COUNCIL REPORT
July 17, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Andrew Mowbray, Finance Director
SUBJECT: RESOLUTION TO AMEND FISCAL YEAR (FY) 2022-23 and FY 2023-24 OPERATING BUDGETs to carryover funds for purchases not received by june 30, 2023 RECOMMENDATION:
It is recommended that the City Council adopt the following resolutions:
RESOLUTION NO. 2023-123 – (ATTACHMENT NO. 1) - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, Amending the FY 2022-23 AQMD OPERATING BUDGET BY INCREASING APPROPRIATIONS IN THE AMOUNT OF $55,881 RESOLUTION NO. 2023-124 – (ATTACHMENT NO. 2) - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, Amending the FY 2023-24 OPERATING BUDGET BY INCREASING APPROPRIATIONS FOR GENERAL FUND IN THE AMOUNT OF $1,311,121, THE TRAFFIC OFFENDER FUND IN THE AMOUNT OF $67,553, AND THE miscellaneous GRANTS FUND IN THE AMOUNT OF $96,027 EXECUTIVE SUMMARY:
Due to supply chain disruptions, timely procurement of vehicles and equipment resulted in unspent budget appropriation in the AQMD Fund, General Fund, Traffic Offender Fund, and the Miscellaneous Grant Funds from the prior fiscal years. As such, carrying forward unused funds is necessary to pay for the vehicles and equipment that have already been ordered and waiting for delivery and/or installation. Additionally, these funds must be re-appropriated in FY 2022-23 for $55,881 and FY 2023-24 for $1,474,701 for expenditure authority.
FISCAL IMPACT:
This action will amend the FY 2022-23 Operating Budget in the AQMD Fund (245-2506-66182-00000) in the amount of $55,881 for purchase of a CNG truck. There are sufficient fund reserves in the AQMD fund for this purchase.
In addition, FY 2023-24 Operating Budget will be amended by appropriating unspent funds available from the prior fiscal year. The changes to the General Fund (Fund 101), Traffic Offender Fund (Fund 219), and Miscellaneous Grants (Fund 215) Operating Budgets are as follows:
Amendments to the FY 2023-24 Operating Budget
It is significant to note that the $1.3M increase of appropriations in the General Fund will result in a FY 2023-24 amended budget that reflects a deficit of $95k. This $1.3M will be used from the General Fund reserves available in the FY 2022-23 actuals and will increase the projected fund balance amount of $56.9M to $58.2M (estimate based on unaudited actuals).
PREVIOUS COUNCIL RELATED ACTION:
On September 20, 2021, the City Council approved the purchase of one CNG truck for the Public Works Department in the amount of $55,881. On June 5, 2023, the City Council adopted the FY 2023-24 City Operating Budget and the FY 2023-24 Capital Improvement Program (CIP) Budget.
DISCUSSION:
Due to supply chain disruptions, timely procurement of vehicles and equipment resulted in unspent budget appropriations in the AQMD Fund, General Fund, Traffic Offender Fund, and Miscellaneous Grant Funds from the prior fiscal years. As such, carrying forward unused funds is necessary to pay for the vehicles and equipment that have already been ordered and waiting for delivery and/or installation. Additionally, these funds must be re-appropriated in FY 2022-23 and FY 2023-24 for expenditure authority.
One new Ford Super Duty F-250 CNG (Compressed Natural Gas) truck for Public Works was ordered through Sourcewell back in September 2021, and AQMD funds in the amount of $55,881were appropriated. However, delivery was delayed until June 2023 because of a supply chain issue with low truck stock and the truck’s CNG upgrade. Funds in the amount of $55,891 are available in AQMD reserves.
Capital item purchases of police vehicles and motorcycles, a PD badge scanning system, office furniture for the Recreation staff, and exercise equipment for the Police Department have been placed on order with the respective vendors during the prior fiscal year. The items were appropriated in FY 2022-23 in the General Fund ($1.3M), Traffic Offender Fund ($68k), and the Miscellaneous Grant Fund ($96k) in the amounts reflected in parenthesis. However, due to supply chain disruptions, the items are not expected for delivery until FY 2023-24, and therefore it is necessary for the funds to be carried over and re-appropriated in FY 2023-24. All funds budgeted from FY 2022-23 will be carry over via this council action to FY 2023-24 to be spent appropriately.
COUNCIL PRIORITIES & GOALS: This supports the following FY 2020/21 City Council Priorities: Fiscal and Operational Responsibility – Take actions to ensure the fiscal sustainability of the City and make operational decisions that align with the City’s core values and priorities.
Prepared by:
Andrew Mowbray
Finance Director
ATTACHMENT:
Attachment No. 1 – Resolution No. 2023-123
Attachment No. 2 – Resolution No. 2023-124
Amend FY 2022-23 and FY 2023-24 Operating Budgets