HomeMy WebLinkAbout4.04 1998-99 BudgetMod CITY CLERK
File # 330-20
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: (June 24, 1999)
SUBJECT:
1998-1999 Budget Modification with Regard to Article XIII B of the
State Constitution (Prepared by: Joe Aguilar, Interim Administrative
Services Director)
EXHIBITS ATTACHED:
None
RECOMMENDATION: /7 ~t~f" Authorize appropriation to Reserves, any revenues in excess of
/\/,/,v-- budgeted expenditures as of June 30, 1999.
FINANCIAL STATEMENT:
The action will provide an appropriation to Reserves in the amount
of any revenues received, 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
books are closed and all accruals recorded.
DESCRIPTION: The action requests authorization to "appropriate" all revenues
received in the current Fiscal Year 1998-1999, which are in excess of expenditures. The actual amounts
involved will be determined following the close of the Fiscal Year 1998-1999.
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
establishes a limit of the amount of annual appropriations, which can be legally made from "Proceeds of
Taxes." Although the City is currently well below the maximum Appropriations Limit, this action will
protect the future expenditures from reserves.
Under State Law certain funds can be. exc!ud~d ~om .~e cM~g!gt,.i~g~0.[,~.~P~!~'appropriati°ns'', which
will be subject to the Limit. The law specifically excludes funds which have be~__"~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. In other words, if the City Council appropriated $500,000 to
reserves in Fiscal Year 1998-1999 and the funds were used in Fisc~.year 20~0~:.2.P~.p~..~..~apital project,
this expenditure Would not be subject to the limit.
The 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 theacma!
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 may 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 ail excess revenues to rese~e~ in
conformance with this report.
Limit/Excess Rev to Reserves 99.doc
H/Budget/Appropriation
ITEM NO.