HomeMy WebLinkAboutItem 4.12 Appropriations to Reserves~~~~ OF Dp~~~
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i9`~~~`~ STAFF REPORT . C I T Y C L E R K
`~~I~ ~~ DUBLIN CITY COUNCIL File #^~ 3~~-~~
DATE: June 22, 2010
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJEC . Authorizing Appropriations To Reserves Any Revenues In Excess of Expenditures
For the Purpose of Future Expenditures Under The State Appropriations Limit
Prepared By: Paul S. Rankin, Administrative Services Director
EXECUTIVE SUMMARY:
This action requests authorization to "appropriate" all revenues received in the current Fiscal
Year 2009-2010 that are in excess of expenditures. The actual amounts involved will be
determined following the close of the financial records and audit. This action applies to all funds
and establishes that the "appropriation" is made in the current year for the purposes of
application towards the Appropriations Limit. When expenditures are made from these reserves
in the future those appropriations are excluded from the Appropriations Limit.
FINANCIAL IMPACT:
This action will provide Appropriations to Reserves in the amount of any revenues received that
are in excess of expenditures. This action will not change the amounts authorized for
expenditure. Actual amounts appropriated to reserves in each Fund will be identified after the
books are closed and all accruals recorded.
RECOMMENDATION:
Authorize as Appropriations to Reserves any revenues in excess of budgeted expenditures as of
June 30, 2010.
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Submitted By:
Administrative Services Director
R iewed
Assistant City nager
DESCRIPTION:
This action requests authorization to "appropriate" all revenues received in the current Fiscal
Year 2009-2010 in excess of expenditures. The actual amounts involved will be determined
following the close of the Fiscal Year 2009-2010 financial records.
The State Constitution requires a City to examine separately "appropriations" that are derived
from "Proceeds of Taxes". Under State Law certain funds can be excluded from the calculation
of the total "appropriations" which will be subject to annual State Appropriations Limit. The law
specifically excludes accounting for funds that have been "appropriated" to reserves in a rior
fiscal year.
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The City Council takes this action each year prior to the close of the Fiscal Year. This action will
simplify the ability in the future to expend any reserves derived from taxes, without the need for
detailed analysis and tracking to determine whether the expenditure of reserves are subject to
the State mandated Appropriations Limit.
When the Reserve Funds are eventually appropriated, 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 $50,000 to Gas Tax Reserves in
Fiscal Year 2006-2007 and the funds were used on a capital project in Fiscal Year 2010-2011,
the expenditure of those funds would not be subject to the Limit.
Staff recommends that the City Council authorize as appropriations to reserves any revenues in
excess of budgeted expenditures as of June 30, 2009.
NOTICING REQUIREMENTS/PUBLIC OUTREACH: None
ATTACHMENTS: None
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