AN ORDINANCE relating to transfers of expenditure allowances in the budget as permitted under RCW 35.32A.050; amending Chapter 5.08 of the Seattle Municipal Code.

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Effective January 1, 2003, Section 5.08.020 of the Seattle Municipal Code is amended as follows:

5.08.020 Transfer between operating budget appropriations program categories.

A. Within the operating budget of the City, the Budget Director may approve only transfers of appropriations that meet all of the following criteria:

1. The appropriation was made for the same department to which the Budget Director allows the appropriation to be transferred. For purposes of this subsection, a board or commission whose budget is not provided within the budget of a City department shall be deemed a department.

2. The amount of the appropriation transferred, together with all previous transfers during the same budget year to that budget item, does not exceed No transfer between program categories within a department's budget shall be approved where such requested transfer is in an amount exceeding ten (10) percent (10%) of the total original budgeted allowance for the budget item program category to which the such transfer is made requested.

3. The transfer will not result in a cumulative annual net transfer of more than $500,000 of appropriations into the budget for any one budget item.

4. The amount of the appropriation transferred, together with all previous transfers during the same budget year from that budget item, does not exceed twenty-five percent (25%) of the original budgeted allowance for the budget item from which the transfer is made.

5. The new purpose of the appropriation must be a legal use of that fund source, must comply with terms, conditions, and restrictions controlling the expenditure of the appropriation so transferred, and must not infringe any covenants or any obligations, agreements, or ordinances by which the City received the moneys.

6. The ordinance making the appropriation did not state that transfer of the appropriation is prohibited.

B. For purposes of this section:

1. All appropriations for purposes not included in the Capital Improvement Program are considered part of the City's operating budget;

2. The "original budgeted allowance" is that amount appearing beside that budget item in the adopted budget; and

3. A "budget item" is the object or purpose shown for a distinct dollar appropriation appearing in the adopted budget or in an amendment thereto. A budget item is the level at which the budget appropriates money, subject only to transfers consistent with this chapter of the Seattle Municipal Code.

Section 2. Effective January 1, 2003, a new section is added to the Seattle Municipal Code as follows:

5.08.025 Transfer between capital budget appropriations.

A. The Budget Director may approve the transfer of appropriations for purposes included in the Capital Improvement Program to other purposes included in the Capital Improvement Program only if those transfers meet all of the following criteria:

1. The appropriation was made for a budget item that is a project or program in the Capital Improvement Program of the same department to which the Budget Director allows the appropriation to be transferred.

2. The amount of the appropriation transferred, together with all previous transfers during the same budget year to that budget item, does not exceed ten percent (10%) of the pending budgeted allowance for the budget item to which the transfer is made.

3. The transfer will not result in a cumulative annual net transfer of more than $500,000 of appropriations into the budget for any one budget item.

4. The amount of the appropriation transferred, together with all previous transfers during the same budget year from that budget item, does not exceed twenty-five percent (25%) of the pending budgeted allowance for the budget item from which the transfer is made.

5. The new purpose of the appropriation must be a legal use of that fund source, must comply with terms, conditions, and restrictions controlling the expenditure of the appropriation so transferred, and must not infringe any covenants or any obligations, agreements, or ordinances by which the City received the moneys.

6. The ordinance making the appropriation did not state that transfer of the appropriation is prohibited.

B. For purposes of this section:

1. The "pending budgeted allowance" is the sum of the current year's original appropriation appearing beside that budget item in the adopted budget plus unexpended balances carried forward from prior years' appropriations for that budget item; and

2. A "budget item" is a program or project within the Capital Improvement Program for which a distinct dollar appropriation appears in the adopted budget or in an amendment thereto. A budget item is the level at which the budget appropriates money, subject only to transfers consistent with this chapter of the Seattle Municipal Code.

Section 3. Effective January 1, 2003, Section 5.08.030 of the Seattle Municipal Code is repealed.

Section 4. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of ____________, 2002, and signed by me in open session in authentication of its passage this _____ day of _________________, 2002. _____________________________________ President _______ of the City Council

Approved by me this _____ day of _________________, 2002. ___________________________________________ Mayor

Filed by me this _____ day of ____________________, 2002. ___________________________________________ City Clerk

September 17, 2002 (Ver 3a)