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HomeMy WebLinkAbout09/05/1995, C-9 - 1994-95 FISCAL YEAR BUDGET RATIFICATION REQUEST UNII�II��I�IIUIII MEETING DATE: cityo san tui s OBISPO q-s- 9 s IMMM AMA COUNCIL AGENDA REPORT nW NUMBER: 24 August 1995 FROM Deborah Holley, Administrator Business Improvement Association SUBJECT: 1994-95 Fiscal Year Budget Ratification Request CAO RECON ENDATION: By motion, ratify use of $24,518 of BIA fund balance to cover expenditure overage for 1994-95 fiscal year BIA budget. DISCUSSION: Upon analysis of the final year-end budget balance for the 1994-95 fiscal year, the new administrator of the BIA found $24,518 more had been spent than budgeted. These funds were expended for the purchase of Christmas decorations upon authorization of the BIA board. At the time of the purchase it was anticipated that these costs would be covered by Taste of San Luis fundraising proceeds. However, those revenues were used to cover other expenses instead, and the funds for the purchase of Christmas decorations came out of the BIA reserve fund. Even though the BIA operates with its own board of directors, it is still a part of the City and requires Council approval to exceed its budget. Procedures have now been put into place which will prevent expending funds for the BIA reserve in the future without prior Council approval. This overage has not impacted the City's operating budget since BIA funds are derived from a business tax surcharge paid by Downtown businesses and the BIA fund reserve was not exceeded. With these additional expenses the BIA will end the 1994-95 fiscal year with a fund balance of $10,382. This balance is lower than the anticipated $34,900 in the 1995-97 Financial Plan by $24,518. e - � ����►►���IIIIII�Ip ��U city of San tuts OBISpo COUNCIL AGENDA REPORT FISCAL IMPACT: The total budget for the BIA for the fiscal year 1994-95 was $196,647. Total expenditures were $221,1645, resulting in a negative balance of $24,518. This difference is due to an expenditure of $26,537 for Christmas decorations authorized by the BIA board and will be covered by the BIA fund balance. ALTERNATIVES: None