Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 22-427, approving a 2022 Budget Transfer in the Facilities and Fleet Management Department between programs within the Equipment Rental and Revolving Fund 502
body
DEPARTMENT: Facilities & Fleet
ORIGINATOR: Patrick Chen
EXECUTIVE RECOMMENDATION: Approved by Ken Klein 09/29/22
PURPOSE: Budget Transfer within Equipment Rental and Revolving Fund 502 to cover budget shortfall in its Overhead Stores program.
BACKGROUND: Fleet Central Stores procure materials, supplies, and fuel at the request of departments to support their work programs. Stores purchases the supplies and fuel, holds them in inventory, and then issues them to the user department. The Stores program is, in essence, a "pass through" for these supplies and fuel acquired on behalf of other departments, with revenues offsetting expenditures. In 2022, the volume of materials and inflated prices of supplies and fuel exceeded Fleet's budgeted expectations and prior years' trends. Consequently, the Stores program budget is forecasted to exceed by approximately $3,300,000. There is, however, sufficient appropriation within the 2022 Fleet overall budget to cover the shortfall through a budget transfer action (as requested through this ECAF for the amount of $3,300,000 to cover any upcoming transactions).
Among the items purchased that caused the budget to be exceeded were fuel and road maintenance supplies. We forecast spending another $1,300,000 on materials and supplies, and another $2,000,000 on fuel through the end of 2022.
FISCAL IMPLICATIONS:
|
EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
CURRENT YR |
2ND YR |
1ST 6 YRS |
|
502 5188403401 Items Purch Resale |
+1,300,000 |
|
|
|
502 5188403405 Items Purch Resale-Fuel |
+2,000,000 |
|
|
|
502 5188606000 Capital Costs |
-1,300,000 |
|
|
|
502 5188606401 Machinery & Equipment |
-2,000,000 |
|
|
|
TOTAL |
0 |
|
|
|
REVENUE: FUND, AGY, ORG, REV, SOURCE |
CURRENT YR |
2ND YR |
1ST 6 YRS |
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|
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TOTAL |
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DEPARTMENT FISCAL IMPACT NOTES: Net fiscal impact is zero.
CONTRACT INFORMATION:
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ORIGINAL |
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CONTRACT# |
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AMOUNT |
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AMENDMENT |
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CONTRACT# |
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AMOUNT |
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Contract Period
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ORIGINAL |
START |
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END |
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AMENDMENT |
START |
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END |
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OTHER DEPARTMENTAL REVIEW/COMMENTS: Reviewed/approved by Finance - Nathan Kennedy 09/28/22