HomeMy WebLinkAbout7/16/2008 - STAFF REPORTS - 2.L. �pALM SA
u u.
��RRovnico ww 4
c�`'F°��''P City Council Staff Report
DATE: July 16, 2008 Consent Calendar
SUBJECT: ANNUAL RESERVATION OF UNAPPROPRIATED FUND BALANCES
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasurer
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, 2008.
STAFF ANALYSIS:
The City's appropriation limit for fiscal year 2007-08 has been established at
$111,471,355.
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 year 2007-08.
ITEM NO.
City Council Staff Report
July 16, 2008 -- Page 2
Reservation of Unappropriated Balances
Since the City's Finance Department cannot determine what this amount will be until the
accounting books are closed for fiscal year 2007-2008, it is recommended that the City
Council authorize appropriations into the following reserves up to the City's
appropriation limit of$111,471,355.
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 $111,471,355,
only the amount of the unappropriated funds is to be reserved.
FISCAL IMPACT:
None.
Geoff�S- Kiehl David H. Ready
Director of Finance and Treasurer City Manager
Attachments:
OOO �EPii2
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, 2008.
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, 2008, funds for the following
reserves indicated, provided the appropriations do not result in the City
exceeding its appropriation limit of $111,471,355.
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, 2008.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
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