HomeMy WebLinkAbout7/31/2002 - STAFF REPORTS (7) DATE: July 31, 2002
TO: City Council
FROM: Director of Finance and Treasurer
RE: 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 2001-02 has been established at
$87,283,231.
Section 2 of Article XII1B 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 2001-02.
Since the City's Finance Department cannot determine what this amount will be until
the accounting books are closed for fiscal 2001-02, it is recommended that the City
Council authorize appropriations into the following reserves up to the City's
appropriation limit of $87,283,231.
Euiad 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 $87,283,231,
only the amount of the unappropriated funds is to be reserved.
Thomas M. Kana�r David H. Ready
Director of Finance and Treasurer City Manager
ATTACHMENT: 1. Resolution 7tq
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, 2002.
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 30,2002, funds for the following reserves indicated, provided the
appropriations do not result in the City exceeding its appropriation limit of $87,283,231.
Euad 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 , 2002.
AYES:
NOES:
ABSENT:
ATTEST CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED
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