Report to Mayor and City Council
Tuesday, February 06, 2024
Discussion
SUBJECT:
Title
CONSIDER INTRODUCTION AND FIRST READING, BY TITLE ONLY, OF ORDINANCE NO. 24-2401, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING SECTION 2955.1 (BUDGET TRANSFERS) OF CHAPTER 9.5 (FISCAL ADMINISTRATION) OF ARTICLE II (ADMINISTRATION) THE CARSON MUNICIPAL CODE TO: (1) REMOVE THE $25,000 LIMIT ON THE CITY MANAGER’S AUTHORITY TO APPROVE INTRADEPARTMENTAL BUDGET TRANSFERS, EXCEPT FOR PERSONNEL-RELATED TRANSFERS; (2) AUTHORIZE THE DEPARTMENT DIRECTORS TO APPROVE INTRADEPARTMENTAL BUDGET TRANSFERS WITHIN THEIR RESPECTIVE DEPARTMENTS, EXCEPT FOR PERSONNEL-RELATED TRANSFERS AND SUBJECT TO RESTRICTION AS MAY BE DEEMED NECESSARY BY THE CITY MANAGER; AND (3) REQUIRE MONTHLY REPORTS TO CITY COUNCIL OF ALL CITY MANAGER OR DEPARTMENT DIRECTOR-APPROVED INTRADEPARTMENTAL BUDGET TRANSFERS" (CITY COUNCIL)
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I. SUMMARY
This item transmits a recommendation for City Council to consider approving proposed Ordinance No. 24-2401 that would amend Chapter 9.5 of the Carson Municipal Code related to budget transfers. The proposed ordinance is included as Exhibit 1, which would remove the existing $25,000 limit on the City Manager’s intradepartmental budget transfer authority. This action would promote efficiency of City operations because intradepartmental budget transfers in amounts over $25,000 are needed frequently and sometimes urgently by the City, and currently they require City Council approval. Authorizing the City Manager to approve such intradepartmental budget transfers would decrease the time necessary for such approvals to be granted from the time the need is identified, but transfers involving personnel-related funds or expenditures, such as salaries or benefits, would be excluded from such increased authority to ensure City’s compliance with applicable labor and employment-related policies and requirements.
II. RECOMMENDATION
Recommendation
WAIVE further reading and INTRODUCE for first reading, by title only, Ordinance 24-2401, entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING SECTION 2955.1 (BUDGET TRANSFERS) OF CHAPTER 9.5 (FISCAL ADMINISTRATION) OF ARTICLE II (ADMINISTRATION) THE CARSON MUNICIPAL CODE TO: (1) REMOVE THE $25,000 LIMIT ON THE CITY MANAGER’S AUTHORITY TO APPROVE INTRADEPARTMENTAL BUDGET TRANSFERS, EXCEPT FOR PERSONNEL-RELATED TRANSFERS; (2) AUTHORIZE THE DEPARTMENT DIRECTORS TO APPROVE INTRADEPARTMENTAL BUDGET TRANSFERS WITHIN THEIR RESPECTIVE DEPARTMENTS, EXCEPT FOR PERSONNEL-RELATED TRANSFERS AND SUBJECT TO RESTRICTION AS MAY BE DEEMED NECESSARY BY THE CITY MANAGER; AND (3) REQUIRE MONTHLY REPORTS TO CITY COUNCIL OF ALL CITY MANAGER OR DEPARTMENT DIRECTOR-APPROVED INTRADEPARTMENTAL BUDGET TRANSFERS”
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council and consistent with applicable laws.
IV. BACKGROUND
Current Ordinance
In 2016, the City Council adopted Carson Municipal Code Section 2955.1, which states “any budget transfer within the same City department in an amount of up to $25,000, as a single transfer or as aggregate transfers within the same fiscal year, may be approved by the City Manager. The City Manager, at his or her discretion, may request City Council approval for any intradepartmental budget transfer of $25,000 or less.” The same Code Section also states, “any budget transfer within the same City department in an amount over $25,000, as a single transfer or aggregate transfers within the same fiscal year, shall require City Council approval.” Any budget transfer in any amount between City departments shall require City Council approval. A ‘budget transfer’ shall mean transfers of moneys between individual funds within the budget. Budget transfers shall not alter the City’s budget.
A copy of the 2016 staff report is included as Exhibit 2.
Proposed Ordinance
The proposed ordinance would make the following changes:
• Removes the existing $25,000 limit on City Manager intradepartmental budget transfer authority.
• Directors will also have authority to approve any intradepartmental budget transfers within their department, except the City Manager may restrict this authority as deemed necessary by the City Manager in his or her discretion.
• Any personnel-related budget transfer in any amount within a City department or between City departments shall require City Council approval.
Also per the ordinance, the City Manager will be required to make monthly reports to the City Council of any City Manager or Director-approved intradepartmental budget transfers, which would effectively combat any actual or perceived transparency concerns that could otherwise be implicated by such increased City Manager or Director authority, and would enable the City Council to remain aware of the approved transfers so as to maintain oversight and control over further transfers should any concerns arise.
V. FISCAL IMPACT
There is no fiscal impact associated with the recommendation, as it pertains only to the first reading of the ordinance.
VI. EXHIBITS
Proposed Ordinance 24-2401 (pgs. 4 - 7)
Prepared by: City Attorney's Office; Michael George, Assistant to the City Manager; and William Jefferson, Finance Director