INTRODUCTION
The Irvine City Charter, Article X, Section No. 1001 sets the legal requirement for the City Manager to submit to the City Council a proposed budget and an accompanying message at such time as the City Council shall prescribe. It is the City’s goal to fu nd current year operating expenses with current year revenues. The budget proposal presented by the City Manager is balanced, with recurring revenues meeting or exceeding recurring expenditures for ongoing operations. Non-recurring revenues may not be used to fund recurring expenditures without the approval of the City Council. Financial Monitoring and Reporting Under the direction of the City Manager, the Budget Office works with all City departments to monitor revenues and expenditures on a monthly basis, taking any necessary corrective measures to ensure a balanced budget. In addition, quarterly financial reports are presented to the City Council and Finance Commission forecasting revenues and expenditures and presenting any necessary balancing measures.
Budget Structure The City’s budget includes three broad categories of funds.
General Fund : This is the main operating fund of the City, accounting for the receipt of taxes and fees, and paying for the routine public services to the community.
Special Funds: Special Funds are used to account for revenues and expenditures that are restricted by law or set aside for a special purpose.
Capital Improvement Program (CIP): The CIP budget details the acquisition, construction or rehabilitation of major capital facilities and infrastructure. The CIP budget is used to account for the receipt and disbursement of funds for specific CIP projects. For many projects, revenue resources and expenditures may extend over several years. State Appropriations Limit Article XIII B of the California Constitution (enacted with the passage of Proposition 4 in 1979 and modified with the passage of Proposition 111 in 1990) restricts the appropriations growth rate for cities and other local jurisdictions. The legislation provides that the governing body shall annually establish its appropriations limit by resolution. The appropriations limit is calculated by determining appropriations financed by proceeds of taxes in the 1978/79 base year and adjusting the limit each subsequent year for changes in the cost of living and population. This appropriation limit is the maximum limit of proceeds from taxes the City may collect or spend each year. Budgeted appropriations are limited to actual revenues if they are lower than the limit. The appropriation limit may be amended at any time during the fiscal year to reflect new data. The City annually calculates the Gann Limit according to legally established procedures (California Government Code Section 9710). The City conforms and adhere to all Gann Limit and related requirements. The City Council adopts by resolution the City’s Gann appropriations limit prior to the fiscal year and adopts by resolution certifying the City is in conformance with Gann requirements. The adoption
FY 2023-25 Adopted Budget
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