HomeMy WebLinkAbout7/25/2007 - STAFF REPORTS - 2.O. ���F pLM SA4
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4<fF'oltN� CITY COUNCIL STAFF REPORT
DATE: July 25, 2007 Consent Calendar
SUBJECT: ANNUAL RESERVATION OF UNAPPROPRIATED FUND
BALANCES
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury
SUMMARY
In order to ensure that undesignated funds remain with the City of Palm Springs
and are not diverted to the State, the City Council needs to appropriate these
unappropriated balances into reserves.
RECOMMENDATION:
Adopt 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, 2007.
STAFF ANALYSIS:
The City's appropriation limit for fiscal year 2006-07 has been established at
$106,518,537.
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.
ITEM NO.
City Council Staff Report
July 25, 2007--Page 2
Reserve of Unappropriated Balances
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 2006-07.
Since the City's Finance Department cannot determine what this amount will be
until the accounting books are closed for fiscal 2006-07, it is recommended that
the City Council authorize appropriations into the following reserves up to the City's
appropriation limit of$106,518,537.
Fund Reserved for
General Reserve for Contingencies, $2,000,000
Reserve for Capital Projects
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
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
$106,618,537, only the amount of the unappropriated funds is to be reserved.
FISCAL IMPACT:
None
Crai A. Graves, Director of Finance and Troy L. Butzlaff, Assistant City Manager-
asurer Administrative Services
David M. Ready, City MRw
Attachments: Resolution
00002
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, 2007.
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, 2007, funds for the following
reserves indicated, provided the appropriations do not result in the City
exceeding its appropriation limit of$106,518,537.
Fund Reserves
General Reserve for Contingencies, $2,000,000
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 July, 2007.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
6
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted
at a regular meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California