SR-202-001 (38)
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DATE:
Harch 10, 1981
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MAR 1 0 19B1
TO:
FROM:
SUBJECT:
Mayor and Councll Members
Perry Scott
Appropriation from Reserve for Capital Improvement to
General Fund Unapproprlated Surplus
Under date of ~1arch 3, 1981, \fJe \'/ere furnished the "January 1981 Monthly
Financial Statement,1I which purports to show available lIUnencumbered
Fund Balance(s) as of January 31, 1981!! by fund. The problem is slmply
that the fund balances are incorrectly computed and that available fund
balances for the General Fund, Special Revenue Funds and Enterprise Funds
are overstated by more than $8,000,000.
The actual (and legal) fund balance of the General Fund, for example,
is not $3,212,404 as shown on Exhibit A, but a negative balance of
$1,202,321, computed as follows'
Gene~'a 1 Fund
Beginning Balance July 1, 1980
Add: Budgeted Estimated Revenues
Subtotal
Less: Appropriations
Negative Fund Balance
$ 4,569,734
30,633,605
$35,203,339
36,405,660
($ 1,202,321)
The practical (and legal) effect of what we have done is to extra-legally
appropriate $1,202,321 more than is available in the General Fund Unappro-
priated Surplus. The problem, in this instance, can be corrected because we
have $4,900,000 which we previously transferred to a Reserve for Capital
Improvements.
13-C
MAI\ 1 0 1981
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TO:
Mayor and City Council
-2-
t4arch lO~ 1981
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It wlll~ however~ require formal action appropriating the necessary
balance from this reserve account and transferring such appropriation to
the General Fund Unappropriated Surplus. In order to provide a minor margin~
it is suggested we appropriate $1,500,000 (rather than $1,202,321) so that
we will have an available banance of about $300,000 in the General Fund
Unappropriated Surplus Account.
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cc: City Manager