1993-03-08 - Laserfiche WebLink

Home Browse Search

291 BE IT FURTHER RESOLVED that the Clerk of this Council is authorized to certify to the Bank the authenticity of this Resolution in such form as the Bank may require. BUDGET WORK SESSION(CARRYOVER FUNDS) Alternatives for dealing with any fund balance in the School budget at the end of the fiscal year were discussed by Council and the School Board. Mr. Hendrix stated that he/and Dr. Joseph McGeehan, Superintendent of CharlottesVille Schools, had met and reached agreement on the following recommendation: 1) Hospitalization should be taken out of the fund balance and be set aside as a seParate ~ccount~ 2) The performing Arts Center should be set up as|an enterprise fund. Costs of operating the theatre for other~than school events should be borne by this fund. City Council should reduce its appropriation for rehearsal tim~ by $10,000-$15,000 and let the fund pay for the difference|between the new appropriation and actual use; and 3) Low Rent/Housing monies should go directly into the school operating fund (and budget) as a revenUe source. Mr. Hendrix ad~ed a fourth recommendation which was not recommended by Dr~ McGeehan as follows: All other~monies including unspent ~udgeted operating funds reVert each year to the "balance." The balances to be distributed as follOws: a) The~first $50,000 stay in the balance; b) The~next $250,0001o~ part thereof is returned to the City~ and c) All funds abov~ $300,000 are split 50/50. Mr. Hendrix added that in order for these recommendations to work~ the City must be willing to seriously~enter~tain any emergency needs requests of the School Board which are not budgeted and could not have been reasonably anticipated. In addition to those items recommended jointly by Mr. Hendrix and Dr. McGeehan, Dr. McGeehan recommended the following: Funds in the Grant Administration and Computer/Capital Funds accounts that exceed $400,000 would be returned to the City each year (unless) a return would place the General Fund Balance in a deficit. In such an instance only surplus funds over a -0- General Fund Balance would be returned. Surplus operating budget ~funds, up to $200,000, at the end of each fiscal year would be~equally shared between school division and the City~ 100% of excess funds over $200,000 would revert to the City, effective with the local operating balance at the end of the 1993-94 school year. Mro Toscano revieWed his proposal made previously as follows: 1) Establish school reserve fund under ~control of Board and Division made up of Low Rent Housing, Property Damage, Grants Administration, Capital Funds, and any other related to administration~monies from state or federal sources~ 2) No gainsharing from fund balance until next year; 3) Gainsharing in future would be 50/50 oflincrease in each of above funds in single year plus 50/50 split in operating surplus (but if a fund declines, no sharing of loss and no spreading of loss across other funds~ 4) Cap reserve funds totals at $400,000 with any excess returning to City; 5) School Board and Council receive semi-annual updates on reserve funds and auditoriumlfunds; 6) School Budget should include estimated revenues and expenditures for all funds, including local and non-local, and a detailed accounting of all funds should be kept and reported in the annual financial statement (fund balances to be included as part of school annual budget); and 7) Auditorium account should be established as enterprise funds, with initial balance (and cap) of $50,000. Balance over that amount should be reprogrammed by School Board and Council, As part of this, the agreement as to City subsidy should be revisited to make this fund more self-supporting. Responding to a question from Ms. Slaughter, Dr. McGeehan stated that no other school.systems in Virginia were