HomeMy WebLinkAboutReso 70-1979 RESOLUTION NO. 70-79
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION ESTABLISHING A WORKING'CAPITAL FUND
WHEREAS, the City Council has considered the Staff Report dated June
20, 1979, Subject: Establishment of Working Capital Fund, a copy of which is
attached hereto as Exhibit "A", and
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WHEREAS, the Council acknowledges that it has been City policy for
many years to maintain a prudent cash reserve for operational requirements
pending receipt of revenues, notably the property tax; and
WHEREAS, the Council desires to formally establish a reserve to
adequately provide for the operational cash requirements of the City; and
WHEREAS, the Council deems that the sum of One Million Two Hundred
Fifty Thousand Dollars ($1,250,000) will provide an adequate reserve for
the near future;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of'
South San Francisco that;
1. A Working Capital Fund shall be established and maintained at
One Million Two Hundred Fifty Thousand Dollars ($1,250,000) and said funds
shall be derived from the following two sources a) the inter-fund loan of
$1.0 million from the General Fund to the Capital Improvement' Fund shall be
transferred and b) $250,000 of General Fund Reserves shall be transferred;
2. Monies in the Working Capital Fund shall be reserved for and
used exclusively for the following purposes;
a. Acquisition of inventories where the cost thereof will be
charged to departments at a subsequent time based upon a
requisition or use of such supplies,
b. Payment of bills by the Finance Department pending receipt
of revenues providing that the related revenues and expend-
itures are both budgeted within the same fiscal year,
c. Inter-fund loans as may be specifically authorized by the
City Counci 1.
I hereby certify that the foregoing Resolution was regularly introduced
and adopted by the City Council of the City of South San Francisco at a
regular meeting held on the 20th day of June
19 79, by the following vote:
, ,
AYES COUNCILPERSON:
II II
NOES COUNCILPERSON:
ABSENT: "
William A. Borba, Terry J. Mirri and Roberta Cerri Teglia
None
Ronald G. Acosta and Emanuele N. Damonte
ATTEST:
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EXHIBIT "A"
RESOLUTION NO. 70-79
June 20, 1979
To:
The Honorable City Counci 1
Subject:
Establishment of WOrking Capital Fund
Action: Resolution
RECOMMENDATI ON:
It is recommended that the City Council adopt a Resolution establishing a
Working Capital Fund.
DISCUSSION:
Over the past years the City has operated its General Fund in a manner to
retain over a milli'o~ dollars in its unappropriated balances for cash flow
purposes. Additionally, it attempted to retain at least 5 percent of the
Operating Budget as an emergency reserve shbuld an emergency require the
City to expend monies far in excess of that available in the Operating
Budget.
State Legislation which has been adopted in the past year and which may
be adopted in future years compel the City to formalize these operating
policies i'n order to avoid unreasonable and unrealistic restrictions. To
formalize this operating policy it is proposed that Council direct Staff
to establish a Working Capital Fund. This Fund would have the following
stated purposes:
1. The acquisition of inventories where the cost will be charged
to departments at a subsequent time based upon the requisition
or use of these supplies;
2. Provide funds for the payment of bills by the Finance Department
pending receipt of revenues providing that the anticipated
revenues and expenditures are budgeted within the same fiscal
year;
3. Provide funds for inter-fund loans as may be specifically
authorized by the City Council.
June 20, 1979
To- The Honorable City Council
Subject: Establishment of Working Capital Fund
Page 2
Based upon past computations it is recommended that $1.25 million be provided
as Working Capital. The Resolution provides that the present loan of $1.0
million from the General Fund to the Capital Improvement Fund be assigned to
the Working Capital Fund and further that $250,000 of General Fund Reserves
shall be transferred to the Working Capital Fund. All monies in this fund
would be reserved for the above commitments.
The attached Resolution, upon approval, will formalize the Working Capital
Fund.
C. Walter Birkelo
City Manager
Wil 1 iam R. Anderson
Director of Finance
CWB/WRA/bab