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Council adopts ordinance raising internal budget transfer thresholds and requires council review if overruns exceed $100,000
Summary
The council adopted changes to the municipal code that increase administrative authority for intrafund transfers, allow limited interfund transfers by the city manager, and require staff to report to council when actual or projected expenditures exceed appropriations by more than $100,000.
The Lompoc City Council voted unanimously to adopt an ordinance revising the municipal code section that governs budget transfers and midyear appropriation changes, increasing staff authority for some transfers and adding a requirement that staff notify council when expenditures within a fund or department are expected to exceed appropriations by more than $100,000.
City staff described the change as an update to antiquated thresholds that previously allowed smaller dollar transfers by management staff and required council approval for most larger adjustments. Under the adopted ordinance, intrafund transfers may be made by the management services director up to $30,000 and by the city manager up to $100,000; transfers above $100,000 must come to council. Interfund transfers may be made by the city manager for amounts up to $5,000; transfers above that remain subject to council approval.
The ordinance adds a new section requiring staff to bring to council any fund where actual expenditures, or a department within a fund, are expected to exceed approved appropriations by more than $100,000 so the council can consider additional appropriations or other actions.
Officials said the change aims to increase transparency and ensure council oversight when budget overruns are material. City staff explained the amendment codifies an existing practice in a clearer way and responds to concerns that council members had voiced about midyear changes that previously escaped explicit review.
Action taken: Council approved the ordinance (roll-call vote recorded as aye from Council member Ball, Council member Starbuck, Council member Bridge, Mayor Pro Tem Victor Vega and Mayor James Mosby). The item had been introduced at a prior meeting and returned for final adoption.
What comes next: Staff said they will implement the reporting requirement by returning to council with requests for additional appropriations or other corrective actions when a fund or department is projected to exceed its approved appropriations by the $100,000 threshold.
