Agenda - Council - 09/23/1986 - Laserfiche WebLink

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)}{inutea CASE 4}12: PRESENTATION O1~ P~OPOSED 1987 OPEI~TINC CAPITAL OUTLAY BUDGET FO~ ~E CI~ ~ By: Dave Hartley, City ~ainistrator Noel ~racz~, Finance Officer Background: Escb year the City must adopt appropriation budgets establishing the level of operational and cspital outlay expenditures for the forthcoming fiscsl yesr. As a part of the budget adoption process, the Council must also pass a resolution establishing the current ad valorum property tax that should be certified to the County to provide for the forthcoming fiscal year budget. At the present time, there are two different topics that need to be addressed in relation to consideration of the 1987 proposed budget: 1) The City Council must adopt a resolution establishing the 1987 budget development agenda; 2) The City Council should convene a special Council meeting on October 7, 1986 to hold a public hearing to consider the 1987 proposed budget including Federal Revenue Sharing entitlement funds and consider adoption of the assessed 1986 payable 1987 current ad valorum property tax levy resolution. Enclosed are the following items for your information: a) Proposed 1987 budget development agenda resolution b) Public hearing notice published September 19, 1986 A draft of the proposed 1987 resource and appropriation budget is enclosed under separate cover to this agenda. Observations: Current Federal Congressional action viii probably result in the discontinuance of the Federal Revenue Sharing entitlement program. In prior years, this program has provided revenue dollars to the City that the City, based on Council direction, could use to provide additional appropriations in the City's operational budget. At the present time, it appears that this program will be discontinued and the final entitlement funds to be received by the City will arrive approximately October 8, 1986. Normally the City would, during its budget process, appropriate future revenues and current funds on hand as a part of its proposed budget. The current proposed 1987 budget does not anticipate any additional Federal Revenue Sharing funds and merely appropriates anticipated funds available as of December 31, 1986 totaling $45,000. These funds represent interest income on the entitlement funds and entitlements that were approved but were not expended. It must be noted that this entire balance must be spent or appropriated by October 1, 1987 or the City will have to refund these entitlement dollars to the Federal government. Recommendation: The City Council has two specific actions it needs to take concerning the proposed 1987 budget at this time.