INTRODUCTION
Special Fund Budgeting The term “Special Funds” shall be used to identify all funds other than the General Fund (001), inclusive of the following fund types: General Reserve, Special Revenue, Capital Projects, Debt Service and Internal Service Funds. Special Funds shall be created when legally required, requested by the City Council, recommended by the Finance Commission, or to facilitate internal accounting and financial reporting procedures. The biennial budget for each Special Fund shall be prepared in conjunction with the General Fund budget and shall be submitted to the City Council for adoption prior to the beginning of the fiscal year. Special Funds budgetary and accounting procedures will conform to GAAP. Activities of the Special Funds are reported to the Finance Commission and City Council on a regular basis consistent with General Fund reporting responsibilities. To show true cost of services, revenues and expenditures are budgeted and accounted for directly in the appropriate fund. Costs for services provided between funds are budgeted as an expense in the fund receiving the services and as revenue to the fund providing the services. Contract Budgeting Approval to enter into contracts for the purchase of services is accomplished through the City’s budget approval process, except for those contracts exceeding $1 million, which require Finance Commission review (or Great Park Board review for Great Park contracts), and City Council approval. Further information can be found in the Guidelines Chapter and a full listing of contracts by department are in the Contracts Chapter. Proposition 4 – Gann Initiative 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 of the appropriations limit by resolution of the City Council is to be completed prior to the fiscal year in question. Once the appropriation limit has been adopted, there are two publication requirements: The appropriations limit and the total appropriation subject to limitation must be published in the budget. Resolutions can be found at the end of the Financial Policies Chapter as well as online at www.cityofirvine.org/transparency-portal.
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FY 2019-21 Proposed Budget
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