Title
A Resolution Amending Section 2 of Resolution 25-1300 A Resolution Adopting Fiscal Year 2026 Budgets.
Summary
Section 2 of the resolution that adopted the city budget needs to be modified. This section placed legal level of budget control on each director for three budget categories, which added additional schedules to our audited financial statements. These schedules are extremely detailed and must be manually created. I am requesting that the terminology be updated to place the legal level of control on the three categories and not on the individual departments. Under city standard operating procedures, each director will still be responsible to remaining under budget in those category.
Body
WHEREAS, there is a need to modify section 2 of resolution 25-1300.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves the modification of section 2 of resolution 25-1300 to read as follows:
SECTION 2: The legal level of budgetary control is established at the City-wide category level for the General Fund. Total expenditures for the City as a whole may not exceed the appropriated amounts within the following broad categories: Personnel, Capital Equipment, and Operational Expenses:
a. Departmental Accountability: Notwithstanding the City-wide legal level of control, Directors are required to operate strictly within the funding appropriated for their specific department.
b. Inter-Departmental Transfers: Budgeted dollars may not be transferred between departments without a written request submitted to the City Administrator and subsequent approval by Council resolution.
c. Inter-Category Transfers: Budgeted dollars may not be transferred between the three broad categories (e.g., from Personnel to Capital Equipment), regardless of department, without approval by Council resolution.
d. Intra-Departmental Transfers: Budgeted dollars may be transferred between line-item accounts within the same category and same department (e.g., from Office Supplies to Fuel) upon a Director's written request to the Finance Director/City Treasurer, provided the category total for that department is not exceeded.
e. Capital Procurement: Departmental capital purchases included in, and approved by this budget, are subject to further justification and adoption of resolution by Council prior to starting the requisition process (i.e. request for purchase order or letting of bids).
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.