HomeMy WebLinkAboutCouncil Policy No. 300-09 - Unallocated Revenues
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Unallocated Revenues Policy No. 300-9
Effective Date: 7/13/04
Revised: 9/12/06
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BACKGROUND
Unallocated Revenue is a term the City uses to identify unreserved funds available to
appropriate or reserve.
PURPOSE
The primary purpose of this Policy is to provide guidelines on how the City will use
unallocated revenue.
POLICY
The allocation or use of unallocated revenue shall be determined by a majority vote of
City Council according to the provisions of this Policy.
Scope
The unallocated revenue policy applies to all funds of the City of Lake Elsinore as
accounted for in the Comprehensive Annual Financial Report (CAFR). This policy is
applicable, but not limited, to all funds listed below:
• General Fund
• Special Revenue Fund
• Debt Service Fund
• Capital Project Fund
• Trust and Agency Funds
• Any new fund created by the City Council unless specifically exempted.
Calculation of Unallocated Revenue Balance
The balance of unallocated revenue for a given fund is determined as follows:
1. Beginning unallocated revenue carryover
Plus:
2. Council approved budgeted revenue for the current fiscal year
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Unallocated Revenues Policy No. 300-9
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Minus:
3. Council approved budgeted expenditures for the current fiscal year
Plus:
4. Unanticipated savings from actual expenditures being less than
budgeted expenditures
Minus:
5. Council approved allocation to a reserve
This calculation can be performed at any time and the unallocated revenue balance will
only change as the City council approves changes to the budgeted revenue, expenditures,
or allocation to a reserve.
Reporting
The unallocated revenue balance shall be reported to City Council as follows:
1. Part of annual operating and CIP budget study sessions and at adoption
2. At the Mid-year budget review study session and City Council meeting
approving the budget adjustments
3. Part of the year-end cleanup budget adjustments
4. Each time staff present an item requiring funding from unallocated
revenue
5. With any other budget adjustment
The unallocated revenue balance shall be reported as part of the fiscal impact section of
the staff report to City Council.
Allocation of Unallocated Revenue
With the recommendation of City staff or the majority discretion of City Council, City
Council may allocate unallocated revenue toward the following:
A. Increasing the reserve fund
B. CIP
C. Unexpected operating costs
D. One-time operating programs
E. One-time operating consulting services
F. New operating programs
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Unallocated Revenues Policy No. 300-9
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HISTORY
Approved by Minute Action 7/13/04