HomeMy WebLinkAbout16.4 Capital Equipment Replacement Plan Line Item Over Expenditure Process POLICY
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O nty Policy Title Date Resolution
No.
Capital Equipment Replacement Plan Line Item January 24,2017 33/17
Over-Expenditure Process
Policy Guidelines/Procedures:
Pursuant to Section 248 of the Municipal Government Act, a municipality may only make an expenditure that
is included in the operating budget, interim operating budget, capital budget,for an emergency, legally
required to be paid, or otherwise authorized by Council.
Policy Statements:
1) All capital expenditures, non-tangible capital asset projects (including gravel acquisition expenditures)
that exceed budget will require Council approval and a budget amendment, with the exception of
individual Capital line items embedded in the annual Capital Equipment Replacement Plan as approved
by Council.
2) Capital Line item expenditures, embedded in the annual Capital Equipment Replacement Plan that
exceed budget on a line item basis will be brought to the Chief Administrative Officer for review with
an explanation of the variance. Items that exceed the original projected cost by no more than 15%of
the original projected cost and to a maximum of$30,000 of any line item projected cost, are permitted
without Council approval based on the following:
a) The CAO to determine whether the expenditure can be absorbed within the Capital Equipment
Replacement Plan budget with under-expended line items;
b) No other suitable options exist to reduce the over-expenditure.
3) Council will receive a monthly capital project listing and a quarterly operating financial report that will
identify variances on a consolidated object line item basis.
4) Should at any time the projected over-expenditure cause the total appropriated amount of budget
funds allocated to the Capital Equipment Replacement Plan to be exceeded, Council approval will be
required with a written explanation and a determination as to the funding source.
Bob Long, LitIioggan,
Reeve AO
Approved: January 24, 2017
Amended:
Review Date: January 24, 2020