HomeMy WebLinkAboutReso 72-1980 RESOLUTION NO. 72-80
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING AMENDMENT 0-3,
1979-80 OPERATING BUDGET
BE IT RESOLVED by the City Council of the City of South San Francisco
that, after duly considering' the Staff Report, dated June 30, 1980, Subject:
1970-80 Operating Budget, which is attaChed hereto as Exhibit "A", finds
that:
A. Protection of life and public and private property for the general
welfare of the City of South San Francisco and the health and safety of the
citizens of the City of South San Francisco requires the establishment of
contingency and reserve funds, particularly including, but not limited to,
capital improvement reserve funds and-equipment revolving reserve funds; and
B. Experience has shown that unanticipated events resulting from
natural or other hazards within and adjacent to the City require reserve funds
in said categories to immediately respond thereto for the protection of life,
public and private property and the welfare of the citizens of the City of
South San Francisco; and
C. Ongoing capital projects and unanticipated capital projects require
reserve funds so as to permit timely project completion for the general
welfare and protection of life and public and private property; and
D. The effects of inflation and fluctuations in the ecomonic activity
of the area and the nation often result in substantial diminution of the
City's available income and thereby jeopardizes the financial ability of the
City to respond as above recited; and
E. The City Council, in reasonably anticipating the needs of the City
·
and its citizens and the protection of life and public and private property,
should establish reserve funds to provide for the purposes and contingencies
above stated;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South
San Francisco that the following actions are orderd:
1. The sum of One Million Seven Hundred Thousand Dollars ($1,700,000.00)
shall be transferred from the General Fund to the Capital Improvement Fund,
and such sum shall be designated as a Reserve for future capital projects; and
2. The sum of One Hundred Fifty Thousand Dollars ($150,000.00) shall be
transferred from the General Fund to the Equipment Revolving Fund, and such sum
shall be designated as a Reserve for future equipment replacements.
I hereby certify that the foregoing Resolution was regularly introduced
and adopted by the City Council of the City of South San Francisco at ~
~djo,rne~ meeting held on the 30th day of ~)une
19 80, by the following vote:
AYES:
NOES:
ABSENT:
Councilmen Ronald G. Acosta, Mark N. Addiego, Emanuele N. Damonte,
Gus Nicolopulos; and Councilwoman Boberta Cerri Teglia
None
None
ATTEST:
City
0
June 30, 1980
TO'
Subject:
Action:
Honorable City Council
1979-80 Operating Budget
Introduce the Resolution
Operating Budget Amendment 0-3, 1979-80
Recommendation-
It is recommended that the City Council adopt a Resolution amending the
1979-80 Budget to appropriate available funds to Reserve Funds for specified
purposes.
Discussion:
Effective with fiscal year 1980-81, all public agencies in California will
be subject to the provision of Proposition 4, the so-called Gann Amendment,
which places limits on the use of "proceeds of taxes."
The State Legislature is currently considering legislation to implement the
provisions of Proposition 4 including such items as definitions, procedures
to follow and reporting requirements. At this time, there is only conjecture
as to what the measures will contain when fully adopted.
In the absence of adopted legislation, Staff has reviewed the provisions of
Proposition 4, legislation in the hopper, a series of Legislative Bulletins
from the League and other information pertinent to the subject. The best
conclusion and recommendation which can be offered at this time is that all
or essentially all of the Unappropriated (Unreserved) Balance which may
reasonably be expected to be in the General Fund at June 30, 1980 should be
appropriated and "reserved" or "earmarked" for a specific purpose°
Section 5 of Proposition 4' provides that each entity of government may
establish such reserve funds as it deems reasonable and proper. The general
consensus is that Capital Outlay Funds will so qualify. Accordingly, it is
Staff's recommendation that the City's Capital Improvement Fund and Equipment
Revolving Fund be the location for such reserves. Section 5 also provides
that the expenditure,withdrawal from such Reserve Funds or the transfer be-
tween such Funds are not subject to limitation.
EXHIBIT "A" TO RESOLUTION NO. 72-80
ADOPTED June 30, 1980
Page 2
Staff Report
June 30o 1980
Assuming this will become the case, Council will have maximum flexibility
in the use of such funds°
The most recent estimate of General Fund Unappropriated Balance at June 30,
1980 which is, therefore, recommended for reservation is $1,850,000. It
would consist of the following estimates:
Fund Balance July l, 1979
Revenues above estimates for 1979-80
Expenditures below authorization for
1979-80
$ 335,000
1,1 20,000
395,000
Total $ 1,850,000
The additional revenue is derived largely from Sales Tax sparked by double
digit inflation, $700,000- Interest Income based upon record interest rates
this past year, $340,000; and record building activity, $90,000.
It is recommended that the above amount be appropriated and reserved in the
fol 1 owing funds-
Capital Improvement Fund
Reserve for future capital projects
,700,000
Equipment Revolving Fund $ 150,000
Reserve for future equipment replacements
Co Walter Birkelo
City Manager
Wi 1 liam R. Anderson
Director of Finance
CWB: WRA.' ti