HomeMy WebLinkAbout4.04 Budget Modif 97-98
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CITY CLERK
File # D3JL2Jrnl-~fQ]
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: (June 16, 1998)
1997-1998 Budget Modification with Regard to Article XIII B of the State
f!9t-Constitution (prepared by: Paul S. Rankin, Assistant City Manager)
EXHIBITS ATTACHED: None
SUBJECT:
RECOMMENDATIO~: / Authorize Staff to appropriate to Reserves, any Revenues in excess of
~O Budgeted Expenditures as of June 30,1998.
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FINANCIAL STATEMENT: The action will simply 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
identified after the books are closed and all accruals recorded.
DESCRIPTION: This report requests authorization to "appropriate" all revenues received in
the current Fiscal Year, which are in excess of expenditures. The actual amounts involved will be
determined following the close of the Fiscal Year.
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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 excluded from the calculation of the total "appropriations", which
will be subject to the Limit. The law specifically excludes funds which have been "appropriated" to
reserves in a I2rim 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 1997/98 and the funds were used in Fiscal Year 2000/2001 on a capital project,
this expenditure would not be subject to the limit.
The specific action requested in this report is for the City Council to authorize the appropriation of IDl
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 [mal Fiscal Year 1997/98 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 may require more than one
year to complete. The actual use of these funds will be subject to a future City Council action.
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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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ITEM NO.
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H1Budget: Iword/apprlimitlag630rsv.doc