 |
|
|
|
|
City Council votes to take back money that's unspent
Reappropriation will give close to $1 million to city, alleviate losses
By Jana Seshadri
The Sunnyvale City Council followed staff's recommendation and voted unanimously to make budget adjustments by reappropriating close to $1 million from projects that lapse at year's end. The decision came on the heels of an end of the year budget report in which staff reported to the council that while the city had made $3.4 million in 2001, revenues were down.
"Fortunately, because of the city's long-range financial planning methodology, adjustments do not have to be severe or reactionary, but rather can be well planned and moderate," said Mary Bradley, Sunnyvale's director of finance, while addressing the council at its Dec. 17 meeting.
Each year staff reports the unaudited budgetary results to council and provides an analysis of the changes between the projected year-end position contained in the May budget and the actual unaudited year-end status. Bradley reported that the city closed the year with positive budgetary results in all areas and recommended that council approve these additional monies revert back to their respective
fund to address the negative effects of the current economic downturn.
Bradley told the council the city is currently experiencing "a significant reduction in revenues" and consequently actual revenues will fall short during the next fiscal year. She said the addition of fund balances from 2000-2001 fiscal year would alleviate some of the negative impact. There will be a Jan. 8 study session to discuss how much of a negative impact the economic downturn is going to have on fiscal issues.
Bradley reported city revenues were 3 percent higher than estimated because of the continued strength of the economy in the first three quarters of the current fiscal year, so the city ended the year making $3.4 million.
Bradley also recommended that the city reappropriate funds for projects that lapse at year's end. Funds for these projects have to be reappropriated for the following fiscal year, she said.
When Pacific Gas & Electric filed for bankruptcy, staff recommended that council stop funding a project for utility undergrounding on Fair Oaks Avenue because staff was under the impression that the money was not available. However, last September PG&E informed the city that the money is now available. Bradley recommended at the meeting that council approve the appropriation of the $900,000 for this project to provide the city's portion of the undergrounding.
Mayor Fred Fowler asked if the money could be put into some other project instead of the underground utility. A final decision will be made after the study session on Jan. 8.
|
|
|
|
Sunnyvale, California Since 1994
