HomeMy WebLinkAbout9/3/2003 - STAFF REPORTS (15) DATE: September �*, 2003
MEMO TO: City Council
FROM: Director of Finance & Treasurer
RE: Establishment of new Special Revenue Fund to track Developer deposits for project
expenses.
RECOMMENDED:
It is recommended that the City Council approve the formation of a new City fund to track the receipt
and expenditures of deposits received from developers on a project specific basis. The fund's name
would be "Special Projects."
BACKGROUND:
The City often receives deposits from developers or property owners to pay for the costs of a specific
project. For example, a project that requires a City Attorney review of its CC & R's must submit a
cash deposit to cover the City's cost. Currently, that deposit is placed in the City's Trust & Agency
(T&A) account, which funds are kept segregated from the City's general bank account.
Using the T&A account works fine for deposits which are to be held for a time, and then either
refunded in total, or forfeited due to lack of performance, However, some deposits are intended to
cover costs that will be expended over a period of time. Those costs could be internal City costs,
such as charges for engineering services, or outside costs, such as legal fees or appraisal services
The accounting for these costs is essentially a manual function outside the City's automated payroll,
accounts payable and cash receipting functions.
If approved, the Special Projects Fund would become the repository of those types of deposits. As a
regular City fund, the revenue and expenses would be accounted for in a more efficient manner, and
will be much easier to administer.
The Special Projects Fund will have no impact on the General Fund or any other City fund Its
creation streamlines the accounting for the type of deposits received and provides a much better
audit trail for the expenses. The change is supported by the City's outside auditors, Conrad &
Associates, LLP.
Submitted by: Approved:
Thomas M. Kanarr David H. Ready
Director of Finance & Treasurer City Manager
Attachment
/I�
RESOLUTION NO. 20716
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ESTABLISHING A SPECIAL PROJECTS
FUND.
WHEREAS, Resolution No. 18982, establishes certain policies pertaining to budget
processes; and
WHEREAS, the City Council must approve the creation of any new accounting Funds;
and
WHEREAS, it is prudent to have an accounting structure in place to track revenue and
expenses associated with developers, property owners or others who are paying for the
required legal, environmental and other reviews of their projects.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs,
California, as follows:
Section 1. Establishment of Special Projects Fund
The Special Projects Fund is hereby established, as a new Fund in the Special
Revenue Group of City funds, and the Director of Finance & Treasurer is directed to
create the appropriate accounting structure.
ADOPTED this 3rd day of September 2003,
AYES: Members Hodges, Mills, 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