HomeMy WebLinkAboutItem 8.3 99-00 BudgMod XIIIB CITY CLERK
File # 330-20
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 21, 2000
SUBJECT:
1999-2000 Budget Modification with Regard to Article XIII B of the
State Constitution
(Prepared by: Richard C. Ambrose, City Manager)
EXHIBITS ATTACHED:
None
RECOMMENDATION: //~uthorize appropriation total to Reserves, any revenues in excess of
budgeted expenditures as of June 30, 2000.
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 identified after the
books are closed and all accruals recorded. With the adoption of the
1999-2000 Budget, the City Council previously approved the
appropriation of excess revenue to reserves for the following
purposes: Library ($1,783,857); Senior Center ($266,098); Open
Space ($150,000); Downtown Improvements ($250,000) totaling
$2,449,955. It is anticipated that revenues will exceed exPenditures
by $3.05 million more than anticipated at the beginning of the Fiscal
Year.
DESCRIPTION: The action requests authorization to "appropriate" all revenues received in the
current Fiscal Year 1999-2000, which are in excess of expenditures. The actual amounts involved will be
determined following the close of the Fiscal Year 1999-2000, but are all currently estimated at
approximately $3.05 million.
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 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 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
COPIES TO:
G :\CC-MI'GSX2000QTR2LIUNE\6-21-00B\as-ar ticle XlH.doc
ITEM NO.
reserves in Fiscal Year 1999-2000 and the funds were used in Fiscal Year 2001-2002 on a capital 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 the actual final Fiscal Year 1999-2000 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. For
example, one potential use for these funds would be to loan the Public Facility Fee Fund monies to
advance a future phase of Emerald Glen Park.
Staff recommends that the City Council authorize the appropriation of all excess revenues to reserves in
conformance with this report.
-2-