HomeMy WebLinkAboutItem 4.04 1995-96BudgetModif
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CITY CLERK
File # n[3l[3\[Q]-~
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: (June 25,1996)
SUBJECT:
1995-1996 Budget Modification with Regard to Article XIII B
rfJ IJ of the State Constitution
rti'-(prepared by: Paul S. Rankin, Assistant City Manager)
EXHIBITS ATTACHED: None
RECOMMENDATION: ~ . J\ / Authorize Staff to appropriate to Reserves, any Revenues in excess
r ,VV1 "" of Budgeted Expenditures as of June 30, 1996.
FINANCIAL STATEMENT:
This report and action will simply provide an appropriation to
Reserves in the amount of any revenues received, which are in
excess of expenditures. The action will not change the amount
authorized to be expended. Actual amounts appropriated to
Reserves in each Fund will be identified after the books are closed
and all accruals have been made.
DESCRIPTION: This report requests authorization for all revenues received in excess of
expenditures to be appropriated. The actual amounts involved will be detennined at the close of the Fiscal
Year.
Each year the City Council takes this action to protect the ability to utilize these reserves in future years,
without the possibility of exceeding the State mandated Appropriations Limit. The State Constitution
limits the amount of annual appropriations, which are made from the "Proceeds of Taxes." The City is
currently well below the maximum Appropriations Limit.
The methodology for accounting for appropriations, which will be subject to the Limit, excludes funds
which may have been appropriated to reserves in a prior Fiscal Year. When the Reserve Funds are
eventually used, they would not be subject to the Appropriations Limit in the year that they were used,
since they had been previously "appropriated" under the limit authorized in a prior year.
The specific action requested in this report is for the City Council to authorize the appropriation of.all
excess revenues to Reserves. This will preclude the need for the City Council to take any further action to
account for differences between the estimates and the actual final Fiscal Year 1995/96 revenues and
expenditures. In taking this action, the City Council acknowledges that the appropriation of excess
revenues is a setting aside of the funds for various projects or expenses that require more than one year to
complete. The actual use of these funds will be subject to a future City Council action.
Staff recommends that the City Council authorize the appropriation of any or all excess revenues to
reserves in conformance with this report.
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4.i
Gt Agendalag630rsv .doc