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Regular City Council Minutes - 1/13/03 Page 13 several months, necessitating the delay in closing a fiscal year. As an example, Mr. Miller anticipated that the 2002 budget year would not be brought to the City Council for closure until March or April of 2003, at which time Council would designate any unexpended funds to the appropriate reserve fund or reappropriate them to other expenditures. Mr. Miller stated that, this unique situation occurred due to no Council meeting available after mid-December; however, the City's accrual accounting system accommodated these types of situations, a general accounting practice followed by most public agencies. City Attorney Anderson further clarified, that once the City Council passed a budget resolution at the beginning of a fiscal year, all funds became appropriated, in accordance with the accounting principles referred to by IvIr. Miller, and until the year is closed out, those monies are available in fund reserves, or put in a special reserve fund and designated, which is a legal practice. Mayor Kysylyczyn sought further clarification as to the accounting procedures, reserve funds, and reappropriation of funds for the succeeding budget year. Mr. Miller reviewed that the City had multiple reserve funds, estimating several dozen such funds, which were each specifically accounted for in the annual financial report, anticipated in April of 2003 for the 2002 budget, with each fund showing a variance column showing their fund status. Mayor Kysylyczyn stated that he had been informed by the Hewlett Packard sales representative that the City had already taken delivery of the two (2) of the three (3) laptops ordered. Mr. Miller stated that staff was not aware of delivery of the laptops to-date. Mayor Kysylyczyn referred to a purchase requisition