Fiscal Note

Each piece of legislation that is financial in nature requires a fiscal note. The fiscal note should be drafted by department staff and should identify operating, capital, revenue, and FTE impacts of the legislation. After preparation by departmental staff, the Department of Finance (DOF) will review and make necessary revisions before transmittal to Council.

Department: Finance

Contact Person/Phone: Glen Lee 4-8079

DOF Analyst/Phone: Dwight Dively 4-0503

Legislation Title: 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.

Summary of the Legislation: This ordinance revises the portion of the Seattle Municipal Code that governs transfers of appropriation authority between budget control levels for the City’s operating budget and Capital Improvement Program. This ordinance is submitted at the request of the City Council. Because this legislation modifies and clarifies the methodology for transferring money from budget control levels, and between capital items, it does not, in itself, have a financial impact.

Background (Include justification for the legislation and funding history, if applicable):

Current City Code limits the amount of appropriation authority that can be transferred to a budget control level to 10% of the authority granted in the Adopted Budget. Current Code is silent on a limit on the amount that can be transferred from a budget control level, or on transfers between capital items. This ordinance limits transfers to 10% of the original budget allowance for the item to which the transfer is being made, with an annual cumulative maximum transfer up to $500,000. In addition, the ordinance limits transfers from a specific budget item to 25%. Consistent with current Code, appropriation transfer requests that exceed these limits will be submitted by ordinance for Council approval.

Public Private Partnership Review Status:

Is the project referenced in the legislation subject to P4 review? No. If yes, identify P4 review to date.

Is the legislation subject to public hearing requirements? No. If yes, what public hearings have been held to date?

Fiscal Sustainability Issues (related to grant awards):

Estimated Expenditure Impacts:

FUND (List # and/or Account)	2002	2003	2004
	0	0	0
TOTAL	0	0	0

One-time $

On-going $

Estimated Revenue Impacts:

FUND (List # and/or Account)	2002	2003	2004
	0	0	0
TOTAL	0	0	0

One-time $

On-going $

Estimated FTE Impacts:

FUND (List # and/or Account)	2002	2003	2004
	0	0	0
TOTAL	0	0	0

# Full Time

# Part Time

# TES

Do positions sunset in the future? If yes, identify sunset date?

Other Issues (including long-term implications of the legislation): By reducing the transfer limits, the Department of Finance will need to develop more rigorous systems to monitor and assess transfers of appropriation authority.