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RESOLUTION NO. R-1415-30: A RESOLUTION OF COUNCIL OF THE CITY OF NORMAN, OKLAHOMA APPROPRIATING $320,905 FROM THE PUBLIC SAFETY SALES TAX FUND BALANCE; $4,337 FROM THE ROOM TAX FUND BALANCE; AND $631,690 FROM THE DEBT SERVICE FUND BALANCE TO CLOSE OUT YEAR END ACCOUNTING ENTRIES FOR FYE 2014.
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BACKGROUND: At the end of each fiscal year, the Finance Department posts all year-end accounting entries. In order to help with this process, some division's categories of expenses require a transfer to cover negative balances in line-item accounts. Oklahoma statutes require that each fund be balanced at the object category of expenditures, which include: salaries and benefits; materials and supplies; services and maintenance; and capital equipment. City of Norman policy requires the City Manager's approval for transfers within a City fund, of funds between departments; from salary and benefit category accounts; and transfers from operating accounts to capital equipment accounts. The City Manager has already approved needed year-end transfers under his authority on recommendation from Finance Department staff (see attached memorandum). In some cases, however, some expenses cannot be covered from available allocations within the same fund and require an appropriation of fund balance. Oklahoma Statutes require that all appropriations of fund balance be approved by the City Council (governing body).
DISCUSSION: At fiscal year-end (FYE) 2014 several funds lacked the needed funds within existing appropriations to cover expenses made during the year, for varying reasons. These include the Public Safety Sales Tax Fund, Room Tax Fund and Debt Service Fund.
In the Public Safety Sales Tax (PSST) Fund, an additional $320,905 needs to be appropriated due to several events. Unbudgeted salary and benefit increases resulting from union contract settlements during FYE 2014 and Police and Fire Department overtime accounts within the PSST Fund were overdra...
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