Committee backs ordinance to simplify Carmel budget transfers, give controller authority over chart of accounts and tighten encumbrance practice

The Finance, Utilities, Rules and Rules Committee on Feb. 3 voted to recommend to the full Carmel Common Council an amended ordinance (D-27-41-24) that simplifies the city’s budget transfer limits, assigns responsibility for the chart of accounts to the controller, and narrows the circumstances under which departments may carry encumbrances from one year to the next.

Zach, the city controller, told the committee the ordinance replaces a two-step transfer process that had allowed departments effectively to move up to $50,000 per year by splitting transfers across days. "What I've cut out here is the $25,000 piece," Zach said, explaining the draft now allows single transfers of up to $50,000 without requiring two transactions. He said the change reflects current state law practice while removing a work-around that had become "a little gimmicky."

The ordinance as amended would also shift…