CITY OF PERRIS

BUDGET AMENDMENT PROCEDURES

Policy Scope

The City begins each fiscal year with a budget approved and adopted by the City Council. In some instances it may become necessary during the year to amend specific line items within the budget. The purpose of this policy is to describe the procedures necessary to amend the budget subsequent to the Council’s approval and adoption.

Types of Budget Amendments

Budget amendment fall into one of four categories

  1. Transfers between two or more line items within a single department/program. The net change to the overall department/program budget resulting from this type of budget amendment is always zero. An increase in one line item within the department/program must be offset by a decrease of the same amount in a different line item within the same department/program. Signatories needed for approval of this category of budget amendment are the department head, the Finance Director, and the City Manager.
  2. Transfers between two or more departments/programs within the same fund. The net change to the overall fund budget resulting from this type of budget amendment is always zero. An increase in one line item within one department/program must be exactly offset by a decrease in a line item within a different department/programwithin the same fund. Signatories needed for approval of this category of budget amendment is the department head, the finance director, and the city manager.
  3. An increase or decrease in the amount appropriated within a fund requires City Council approval. This approval is required regardless of whether the increase/decrease is the result of a transfer between funds or a budget request affecting a single fund. City Council Agenda submittals in which additional funds are requested will clearly show the amount of the additional appropriation in the “requested action” portion of the staff report to ensure that the appropriation is included in the Council motion.
  1. During the fiscal year, the City Council may initiate, through minute motion, changes to programs or activities which will require funding above that in the adopted budget. In such cases, even in the absence of a formal budget appropriation, the Finance Director has implicit authority to amend the budget subject to the City Manager’s approval.

A completed and fully authorized Budget Amendment Request form is required prior to an amendment being entered into the City’s financial system. The Finance Department will maintain a file of entered forms as support for all amendments input into the financial system.