HomeMy WebLinkAbout7/18/2001 - STAFF REPORTS (20) DATE: July 18, 2001
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 for fiscal year 2000-01 has been established at$78,527,423.
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 City Council appropriate into
reserves the amount of unappropriated fund balances which will bring the City up to but will
not exceed its appropriation limit for fiscal 2000-01.
Since the City's Finance Department cannot determine what this amount will be until the
accounting books are closed for fiscal 2000-01, it is recommended that the City Council
authorize appropriations into the following reserves up to the City's appropriation limit of
$78,527,423.
E ind 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 Projects 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 $78,527,423, only
the amount of the unappropriated funds is to_o be reserved.
THOMAS M. KANARR David H. Ready
Director of Finance and Treasurer City Manager
ATTACHMENT: 1. Resolution
/fIA
RESOLUTION NO. 20134
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, 2001.
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 Director to appropriate from unappropriated fund
balances, as of June 30,2001, funds for the following reserves indicated, provided the
appropriations do not result in the City exceeding its appropriation limit of$78,527,423.
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 18th day of July 2001.
AYES: Members Hodges, Jones, Oden, Reller-Spurgin and Mayor Kleindienst
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM
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