The Homer City Council passed a resolution at their last regular meeting on Sept. 22 establishing concrete procedures for managing small budget overages for capital projects. Brought forth by city manager Melissa Jacobsen, the resolution aims to create further efficiency in city staff workflows.

Resolution 25-083 acknowledges occasions in which capital projects undertaken by the city exceed council-approved appropriation of funds, whether due to unanticipated project costs or cost increases between the time that funding is approved and the work is completed. Historically, project budget overages have required council review and approval through legislation, which could delay payment to vendors for their work.

“Typically we discover these when we’re to the end of the project, and we’re paying final invoices,” she told the council during the meeting.

While Jacobsen confirmed in a Sept. 17 memorandum the necessity for keeping Homer Mayor Rachel Lord and the council informed on expenditures, in bringing forth the resolution, she sought to better maintain project schedules and ensure fiscal accountability by approving small overages internally.

“Legislation for these small overages requires staff time to create and route a memo and ordinance through necessary departments, schedule it on an agenda, introduce it, and then conduct a public hearing,” she wrote in the memo. “In addition to staff time, advertising costs, attorney review, and time with Council, withholding payment from vendors while we move through this process can put an undue burden on them.”

The resolution thus authorizes the city manager to approve capital budget overages of up to $5,000 — provided that sufficient funds are available within the adopted spending source. Jacobsen noted in the memo that she came to that number as it is “the lowest threshold of spending” in the city’s procurement policy. These approvals will be reported quarterly to the council. Overages exceeding $5,000 — whether a one-time occurrence or cumulative — will be required to come back to council by ordinance and receive their approval through a budget amendment.

Resolution 25-083 was adopted without opposition by any council member. Find the resolution and supplemental materials in full at www.cityofhomer-ak.gov/citycouncil/city-council-regular-meeting-335.

The next Homer City Council meeting will take place on Monday, Oct. 13 at 6 p.m. in the Homer City Hall Cowles Council Chambers and via Zoom.