HomeMy WebLinkAboutApprove Balancing of Police Department’s Federal Narcotics FCITY OF HUNTINGTON BEACH
MEETING DATE: June 20, 2005 DEPARTMENT ID NUMBER: PD-05-007
Council/Agency Meeting Held: "Zqc
Deferred/Continued to:
pproved ❑ Conditionally Approved ❑ Denied
C' erIA Sig re
Council Meeting Date: June 20, 2005
Departmen ID Number: PD-05-007
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE YAYOR AND CITY CO�NCI_MEMBERS
SUBMITTED BY: PENELOPE ULBRETH-GRAFT, CITY ADMINISTRATOR -
PREPARED BY: KENNETH W. SMALL, CHIEF OF POLICE 5
c:
SUBJECT: Approve Balancing of Federal Narcotics Forfeiture Fund
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement: of Issue:
The Federal Narcotics Forfeiture Fund, Number 212, currently has a negative balance of
$211,761. In order to eliminate the negative balance, the Police Department would like to
utilize a portion of the State Narcotics Forfeiture Fund, Number 214, and the existing
2004/2005 general fund budget of the Police Department.
Funding Source:
The total negative balance of the Federal Narcotics Forfeiture Fund, Number 212, is
$211,761. The account will be balanced as follows:
• $119,000 from fund 214, State Narcotics Forfeiture Fund Balance
• $92,761 from the existing Police Department, 2004/2005, general fund budget,
account number 10070201. These funds are available as a result of salary savings.
Recommended Action:
1. Approve the transfer of $119,000 from the State Narcotics Forfeiture Fund, Number 214
to the Federal Narcotics Forfeiture Fund, Number 212; and
2. Approve the transfer of $92,761 from the existing Police Department, 2004/2005, general
fund budget, account number 10070201 to the Federal Narcotics Forfeiture Fund,
Number 212.
`E-S
RCA -Balance Federal Narcotics Fund-6-20-05.doc 1 6/7/2005
REQUEST FOR COUNCIL ACTION
MEETING DATE: June 20, 2005 DEPARTMENT ID NUMBER: PD-05-007
Alternative Action(s):
Do not approve the transfer of funds and balancing of the Federal Narcotics Forfeiture Fund
and direct staff accordingly.
Analysis:
The Police Department currently participates in the Federal and State Narcotics Equitable
Sharing Program, also known as the Narcotics Forfeiture Program. During the course of
many narcotics investigations, cash/accounts and property are linked directly to narcotics
activity. The funds/property that are related to narcotics activities are placed into evidence
and held until the court trials are completed. If during the course of the court trial the judge
rules that the funds or property are a linked to narcotics activity, the items/funds are forfeited
to the law enforcement agency. Both the State and Federal forfeiture rules require that the
funds must be accounted for separately and each has reporting requirements.
In fiscal year 1993/1994 the Federal Narcotics Fund was able to financially support one (1)
Sergeant and nine (9) officers. At that time we had officers assigned to the Federal Drug
Enforcement Agency (DEA) Task Force. This allowed the Police Department to share in the
forfeitures that the federal team was awarded. In fiscal year 1993/1994, four (4) of the
officers supported by the Narcotics Forfeiture Funds were DARE officers. In fiscal year
1994/1995, the amount of forfeiture funds awarded to the Federal Task Force was reduced
and the number of officers supported on the program was reduced to six (6) officers, four (4)
of which were DARE officers. In fiscal year 1995/1996, the number of officers was reduced to
five (5), four (4) of which were DARE officers. By fiscal year 1996/1997, the funding from the
Federal Narcotics Forfeiture Programs had been reduced to only allow for the funding of the
four (4) DARE officers. In fiscal year 1996/1997, the Police Department removed the officers
assigned to the DEA task force due to budgetary issues and the need to assign more officers
to patrol functions.
By fiscal year 1997/1998, funding was severely reduced due to the lack of personnel
assigned to the DEA Task Force. In fiscal year 1997/1998, expenses for the four (4) DARE
officers exceeded the revenue of the Federal Narcotics Forfeiture Account. Since fiscal year
1997/1998, the DARE program has been reduced, but was not completely removed until
fiscal year 2000/2001. The accumulation of expenses over these years created an ongoing,
increasingly negative balance. The Police Department has reduced the negative balance
over the years with the federal funds received, but has not been able to completely eliminate
it.
Annually, the Police Department is required to file a financial report on the status of the
Federal Narcotics Forfeiture Fund. This report is filed with the Department of Justice (DOJ).
Since 1997/1998, the Police Department has filed reports indicating the negative cash flow of
this fund. DOJ has advised the Police Department that as of the filing for fiscal year
2004/2005 they will not accept a report indicating a negative balance; therefore the fund must
be balanced in this fiscal year.
RCA -Balance Federal Narcotics Fund-6-20-05 2 6/8/2005
REQUEST FOR COUNCIL ACTION
MEETING DATE: June 20, 2005 DEPARTMENT ID NUMBER: PD-05-007
A review of the account indicates that the current negative balance is $211,761. Of that,
$119,000 is directly attributed to historical DARE expenses and $92,761 is related to
renovations to the NarcoticsNice Unit. The State Narcotics Forfeiture Fund, Number 214,
has a positive cash balance. In order to balance the Federal Narcotics Forfeiture Fund,
representatives from the Police Department contacted representatives from DOJ and the
County of Orange Sheriff's Department, who oversee the Federal and State Narcotics
Forfeiture Funds, respectively, to discuss the policies regarding expenses of the funds. Both
agencies agree that the State Narcotics Forfeiture Fund can offset any expenses assessed
directly to narcotics investigations or education. Therefore, $119, 000 of the current negative
balance can be balanced with the State Narcotics Forfeiture Funds. The balance of $92,761
can be balanced against the existing Police Department, 2004/2005, general fund budget,
account number 10070201. The funds in account number 10070201 are from salary savings
due to vacancies. The combination of these two accounts funds will eliminate the current
negative balance in the Federal Narcotics Forfeiture Fund. No additional funds will be
necessary.
Environmental Status:
Not Applicable
Attachment(s):
RCA Author: Shana Bawa
RCA -Balance Federal Narcotics Fund-6-20-05 3 6/8/2005
ATTACHMENT
# 1
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
TO: PENELOPE CULBRETH GRAN I', DPA, CITY ADMINISTRATOR
FROM: DAN T.VILLELLA, CPA, FINANCE OFFICER
SUBJECI": FIS 2005 — 21: FEDERAL NARCOTICS FORFEITURE FUND
DATE: JUNE 7, 2005
As required by Resolution 4932, this Fiscal Impact Statement has been prepared for
"Federal Narcotics Forfeiture Fund"
If the City Council approves this action (total appropriation $211,761) there will be no
effect on the General Fund Balance since the appropriation of $92,761 comes from an
existing appropriation. The Narcotics Forfeiture State Fund would have its estimated
September 30, 2005 fund balance reduced to $389,000.
45Y
nVZIHeHa.,
Finance Officer
RCA ROUTING SHEET
INITIATING DEPARTMENT:
Police
SUBJECT:
Federal Narcotics Forfeiture Fund
COUNCIL MEETING DATE:
June 20, 2005
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (wlexhibits if applicable)
(Signed in full by the CityAttome )
Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by Ciy Attome
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Not Applicable
Financial Impact Statement (Unbudget, over $5,000)
Attached
Bonds If applicable)
Not Applicable
Staff Report If applicable)
Not Applicable
Commission, Board or Committee Report (If applicable)
Not Applicable
Findings/Conditions for Approval and/or Denial
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED
RETURNED
FORWARDED
Administrative Staff
Assistant City Administrator Initial
)
City Administrator Initial
( )
{ )
—City Clerk
)
EXPLANATION FOR RETURN OF ITEM:
d�
RCA Author: Shana Bawa