June 4, 1975 )ca td iiid
MEMORANDUM dg t, AcgA'40 C-
TO: DONALD R. FEASTER, Executive Director
FROM: JAY T. AHERN, Staff Attorney ~ '
RE: Whether Borrowing Money is Unanticipated Funds and Requires Q
Notice to Amend Final Budget --
At your request, I have reviewed the question as to the effect of borrowing
money on the previously adopted final budget.
I believe that the act of borrowing money amounts to receiving unanticipated
funds within the intent of the statute on establishment of the district budget
as set forth in Section 373.536(4) Florida Statutes. A look at this statute
shows that the final budget must, among other things, show the estimated amount
to be raised by District taxes and from other sources for meeting the District's
requirements. Under the statutory wording, the final budget adopted must show
that the District anticipates borrowing money to be considered as part of the
adopted budget. Where the final adopted budget does not show an intent to
borrow money and the District determines to borrow money subsequent to adopt-
ing the budget, this would be receiving unanticipated funds and under Section
373.536(4) would require amending the final budget pursuant to public notice.
It is my opinion that where you expend funds or incur debts beyond that
specified in the budget other than to meet a disaster or emergency and borrow
money to meet the expense, the borrowed money is unanticipated funds and
precipitates the need to amend the final budget. The word fund has been
defined as a sum of money set apart for a specific purpose or available for
the payment of debts or claims. It has been variously defined as meaning
money or its equivalent, gathered for or to be appropriated to a specific
object, Harris v City of Miami (D.C. Fla) 6 F. Supp. 305.
Accordingly, I believe the act of borrowing money after adoption of final
budget to pay for a project not specified in the budget amounts to unantici-
pated funds as addressed to in Section 373.536(4), Florida Statutes, requiring
an amendment to the budget to be processed as required by the District's
cc: Myron G. Gibbons, Esquire
Mr. Tom T. Mullin