HomeMy WebLinkAboutReso 71-1979 RESOLUTION NO. 71-79
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION DESIGNATING THE RESERVE OF CERTAIN FUNDS
WHEREAS, the City Council has considered the Staff Report
dated June 20, 1979, Subject: Establishment. of Reserve Funds, a copy of which
is attached hereto as Exhibit A, and
WHEREAS, the Council acknowledges that it has been an unwritten
policy for years to maintain prudent reserves, and
WHEREAS, the Council desires to formally designate that prudent
reserves shall be established and maintained, and
WHEREAS, the Council deems that the following Reserves are prudent
and necessary for the financial well being of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
South San Francisco that:
1. The General Fund of the City shall include a Reserve for
Catastrophic Events amounting to at least five (5) percent
of the General Fund budget but not less than $600,000; and
2. All available monies of the Gas Tax 2106 Fund shall be
reserved for street capital projects; and
3. All available monies of the Gas Tax 2107 Fund shall be
reserved for Street Capital Projects except that annual
subventions shall be allocated' to the General Fund for
street maintenance purposes; and
4. All available monies inibe Equipment Revolving Fund shall
be reserved for the replacement of vehicles and work
equipment.
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 COUNC1LPERSON:
II II
NOES COUNCILPERSON:
ABSENT "
William A. Rn~hn, Tpr~y J, Mirri nnd Rnh~rta Cerri Teglia
Nnne
Ronald G. Acosta ., and Emanuele N. Damonte
ATTEST:
-2-
EXHIBIT "A"
RESOLUTION NO.. 71-79
June 20, 1979
The Honorable City Council
Subject:
Establishment of Reserve Funds
Action- Resolution
RE COMME N DAT I ON:
It is recommended that the City Council adopt a Resolution designating the
reserve of certain funds for specific purposes.
DISCUSS ION:
.Sta.ff has indicated__at_an earlier 'Council meeting and as a reason for other
recommendations at this meeting, that informal. 'operating policies of the
City should be formalized'in order to retain the City's financial flexibility
and to protect its funds from arbitrarY restrictions by Stat6 Legislation.
A review of several Funds of the City indicates that unwritten policies have
been followed for a number of years resulting in pru. dent reserves being
carried as Unappropriated Balances. It is Staff's belief that to protect
the integrity of these funds that Council should formally designate them as
.having been reserved for specific purposes which would then remove them from
the unappropriated category.
While this Resolution would designate that certain funds are to be reserved
for specific purposes, this would not inhibit the present or a future Council
from expending these reserves for another lawful purpose should changing
conditions require such action.
The following funds are affected in the following manner by this ResolutiOn·
Fund Amount Purpose
General Fund
Gas Tax 2106
Gas Tax 2107
$600,000
All Available Funds
All Available Funds
Equipment Revolving Fund "
Reserve for catastrophic events.
Reserve for Street Capital Projects
Reserve for Street Capital Projects
excluding annual subventions
assigned to the General Fund for
street maintenance purposes.
Reserve for 'equipment replacement.
June 20, 1979
To: The Honorable City Council
Subject: Establishment of Reserve Funds
Page 2
The attached Resolution delineates the Council policy and directs Staff to
take the above action.
C. Walter Birkelo
City Manager
William R. Anderson
Director of Finance
CWB/WRA/bab