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Sanford commissioners debate raising budget transfer threshold; staff to put proposal in September budget resolution
Summary
Commissioners discussed raising the threshold for transfers the commission must approve from $50,000 to $75,000 or $100,000, and setting a percentage cap (20% suggested) for changes to approved capital projects; staff will return a proposed change as part of the September budget resolutions.
Sanford City Commission members on July 28 discussed revising the city's policy that requires commission approval for budget transfers over $50,000 and for any change to capital projects regardless of amount.
"By state statute, budget amendments have to be approved by commission," Ms. Lindsey, the city's finance staff member, told the commission, adding that transfers (internal moves between line items that do not change the total budget) currently do not require commission approval unless they exceed $50,000 or they change capital projects or equipment. Lindsey said "anything over $50,000 to transfer, and also anything that changes the capital project" comes before the commission.
Several commissioners said the $50,000 threshold, which has been in place about five to six years, is too low given inflation and operational delays that occur when staff must wait for commission approval. One commissioner proposed $75,000; another suggested $100,000. Commissioners also discussed whether to require commission approval when a capital project is altered so long as the project still gets done; options included a percentage threshold of 20% or 25% of a capital project's value.
"My goal is to make it easier for staff to get their job done, but for us to still maintain the knowledge we need as to what's going on," one commissioner said, recommending "$75,000 for transfers and 20% or 25% on capital." Several participants favored starting with $75,000 and revisiting the threshold after a year.
Lindsey said the administration will present recommended language when the purchasing policy revision is presented and will include the transfer threshold in the budget resolutions the commission adopts in September. No formal change was voted on during the work session.
The exchange clarified the difference between budget amendments (which change the overall budget and must be approved by commission) and transfers (which move funds between line items without changing the total budget); staff said transfers are typically within a department.
The commission directed staff to return a proposed change in the purchasing/budget transfer policy for consideration with the September budget resolutions.
