HomeMy WebLinkAbout7/19/2000 - STAFF REPORTS (33) DATE: July 19, 2000
TO: City Council
FROM: Director of Finance and Treasurer
ANNUAL RESERVATION OF UNAPPROPRIATED FUND BALANCES
RECOMMENDATION:
It is recommended that the City Council appropriate into reserves the unappropriated fund
balances in designated City Operating and Capital Project Funds for future operations or
projects.
BACKGROUND:
The City's appropriation limit forfiscal year 1999-00 has been established at$72,899,576.
Section 2 of Article XIIIB of the California Constitution requires that revenues received by
any entity of government in excess of that amount which Is appropriated during a fiscal
year must be returned. The State of California has amended the Revenue and Taxation
Code in order to allow the State to withhold subvention revenue to cities in order to"return"
this money. In other words, the State of California ends up with an amount equal to the
revenues that exceed the appropriations limit.
In order to ensure that funds are maintained at the local level to provide services for the
citizens of the City of Palm Springs, it is recommended that the Citv Council aropriate
into reserves the amount of unappropriated fund balances which 11 bring tie Cppity up to
but will not exceed its appropriation limit for fiscal 1999-00.
Since the City's Finance Department cannot determine what this amount will be until the
accounting books are dosed for fiscal 1999-00, it is recommended that the City Council
authorize appropriations into the following reserves up to the City's appropriation limit of
$72,899,576.
Fund Reserved for
General $1,000,000 contingencies, remainder
capital projects
Community Promotion Capital projects, library and parks
Special Gas Tax Reserve for Capital Projects
Capital Protects Reserve for Capital Projects
Drainage Reserve for Capital Projects
In the event there are more unappropriated funds than can legally be appropriated,
appropriations will be made up to the City's appropriation limits with the General Fund
being the final fund having its unappropriated fund balances reserved.
In the event unappropriated funds fall short of the appropriation limit of$72,899,576,only
the amount of the unappropriated funds is to be reserved.
APPRO
David Rea Ty Thomas M. Kanarr
City Manager Director of Finance and Treasurer
ATTACHMENT: 1. Resolution
32A
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, APPROVING THE
RESERVATION OF UNAPPROPRIATED FUND
BALANCES IN VARIOUS CITY OPERATING AND CAPITAL
PROJECTS FUNDS FOR THE FISCAL YEAR ENDING
JUNE 30, 2000.
WHEREAS the City of Palm Springs has unappropriated fund balances in various
Operating and Capital Projects Funds; and
WHEREAS the City of Palm Springs will require the funds composing these
unappropriated fund balances for future operations or projects; and
WHEREAS the City Council of the City of Palm Springs desires to reserve these funds for
future use.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Palm Springs
hereby authorizes the Finance Directorto appropriate from unappropriated fund balances,
as of June 30,2000,funds forthe following reserves indicated,provided the appropriations
do not result in the City exceeding Its appropriation limit of$72,899,576.
Fund Reserves
General Reserve for Contingencies, $1,000,000
Reserve for Capital Projects, remainder
Community Promotion Reserve for Capital Projects, Libraries
and Parks
Special Gas Tax Reserve for Capital Projects
Capital Projects Reserve for Capital Projects
Drainage Reserve for Capital Projects
ADOPTED this day of 12000.
AYES:
NOES:
ABSENT:
ATTEST CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED&APPROVED
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