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HomeMy WebLinkAboutItem 8.3 BudgModifXIIIB 2000-1 CITY CLERK #330-20 AGENDA STATEMENT CITY COUNCIL MEETING DATE: (June 21, 2001) SUBJECT: 2000-2001 Budget Modification with Regard to Article Xlll B of the State Constitution (Prepared by: Carole A. Perry, Administrative Services Director) ATTACHMENTS: None RECOMMENDATION: Authorize appropriations to Reserves, any revenues in excess of ~r/budgeted expenditures as of June 30, 2001, as outlined below. FINANCIAL STATEMENT: The action will provide appropriations to Reserves in the amount of any revenues received that are in excess of expenditures. The action will not change the amount authorized for expenditure. Actual amounts appropriated to Reserves in each Fund will be identified after the books are closed and all accruals recorded. DESCRIPTION: This action requests authorization to "appropriate" all revenues received in the current Fiscal Year 2000-2001 that are in excess of expenditures. The actual amounts involved will be determined following the close of Fiscal Year 2000-2001. Each year the City Council takes this action to protect the ability to utilize these reserves in future years, without the risk of exceeding the State mandated Appropriations Limit. The State Constitution establishes a limit on the amount of annual appropriations that can legally be made from "Proceeds of Taxes." Although the City is currently well below the maximum Appropriations Limit, this action will protect future expenditures from Reserves. Under State Law certain funds can be excluded from the calculation of the total "appropriations" which will be subject to the Limit. The law specifically excludes funds that have been "appropriated" to Reserves in a prior fiscal year. When the Reserve Funds are eventually used, they are not subject to the Appropriations Limit in the year utilized, since they were previously "appropriated" under the Limit authorized in a prior year. In other words, if the City Council appropriated $500,000 to Reserves in Fiscal Year 2000-2001 and the funds were used on a capital project in Fiscal Year 2002-2003, this expenditure would not be subject to the Limit. At the time of the adoption of the Fiscal Year 2000-2001 budget, the City Council directed Staff to allocate an estimated year-end surplus of $3,056,628 to Reserves. The Reserves were earmarked for the Emerald Glen Fire Station, the Senior Center, the Senior Center Van and for Downtown Improvements/Open Space. COPIES TO: F/bdgt2000-2001/excessrevtoreservesBDGTAG E N DASTMT ~ ITEM NO. As part of the development of the Fiscal Year 2001-2002 Preliminary Budget, Staff has revised the revenue and expenditure estimates for Fiscal Year 2000-2001. Those revised estimates project that the City's 2000-2001 year-end surplus will be $4,990,344 higher than anticipated in the Preliminary Budget. This is primarily attributable to increased assessed valuation, higher than anticipated sales tax from auto sales, increased interest income, increased property sales and property values, and delays in completing 2000-2001 Capital projects fimded by the General Fund. The City has a number of projects that are in progress, which will require additional contributions from the General Fund in the future. Should Staffs revised estimates materialize when the Fiscal Year 2000- 2001 books are closed, Staff Would recommend that the additional year-end surplus be ,allocated in the amounts and priority shown below. It the surplus exceeds Staffs estimate, Staff would recommend that the Reserve for the Downtown Improvements/Open Space be increased. RECOMMENDED YEAR-END SURPLUS ALLOCATION Previously Additional Amount Authorized to Recommended Reserves in to Reserves in PROJECT FY2000/2001 FY2000/2001 Total FY2000/2001 Emerald Glen Fire Station (93510) $1,273,000 $1,279,324 $2,552,324 Civic Center Library (93450) $2,385,240 $2,385,240 Senior Center (95930) $ 613,500 $1,256,312 $1,869,812 Senior Center Van $ 50,000 $ 50,000 Downtown Improvements/ Open Space $1,120,128 $ 69,468 $1,189,596 TOTALS: $3,056,628 $4,990,344 $8,046,972 Staff recommends that the City Council authorize the appropriation of all excess revenues to Reserves in conformance with this report.