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HomeMy WebLinkAboutAgenda Statement 1974/02/14 Item 16 AGENDA ITEM NO. [ 16 ] CHULA VISTA CITY COUNCIL MEETING OF: February 14, 1974 ITEM TITLE: Resolution - Authorizing a transfer of funds to the Redevelopment Agency of the City of Chula Vista and describing terms and conditions therein INITIATED BY: Executive Director, Redevelopment Agency City Manager BACKGROUND Chapter Six of the Community Redevelopment Law of the State of California contains specific provisions whereby the City is authorized to transfer appropriate funds to the Agency for expenses incurred in the pursuit of redevelopment, subject to such terms and conditions as the City may stipulate. Through this provision, it is possible for the City to operate redevelopment programs at zero cost through reimbursement by the Agency for City-supplied services. (Reimbursement is tied directly to any revenue generated through any of the means permitted by the State law.) This resolution provides for a transfer to the Agency from the City's unappropriated surplus of the Federal Revenue Sharing Fund in the amount of $10,000, as justified by the Executive Director's budget proposal, attached. At its meeting of February 5, Council directed that this item be returned for action at the next meeting and that information concerning the utilization of Revenue Sharing funds for this purpose be provided at that time. Correspondence from the Office of the Secretary of the Treasury's Office of Revenue Sharing indicates that the utilization of Revenue Sharing Funds for the legal and administrative expenses associated with implementing a redevelopment project involving capital expenditures constitutes a proper expenditure of funds. The Director of Finance indicates that he is in agreement with the above interpretation and foresees no problems in making such a transfer. ATTACHED: Resolution [xJ Ordinance [ ] Agreement [ ] Plat [ ] See EXHIBITS [X] No. I, 2 Financial Statement: Appropriate $10,000 from the unappropriated surplus of the Federal Revenue Sharing Fund Commission-Board Recommendation: N.A. Department Head Recommendation: N.A. City Manager Recommendation: Recommend approval R7/~ __,-"""_""._"~__,,,,"_,^,~,,. .__.._ _., __~ ._>.v,_,,.......,"'.,"'___.....__.._....___,..,~~__"" ..Ii' '-'" (. I'. February 1, 1974 ~O\..UTIOIv f(-<i; ~ ~ '".~. ~ ~~'1)"'. \" " (>II...... ~ g ..~ t m If. ~"....c;. .. ~ . ';P"DJ ~ 1 ."ivl ,. '\ '??6'1111~ OFFICE OF THE SECRETARY OF THE TREASURY OFfiCE OF REVENUE SHARING 1900 PENNSYLVANIA AVENUE. N.W. W"SHINGTON, D.C. 20226 r"H ~~~.,,';~ ft' 11 .I/)..:J !,',i: ~ ~ "- . J'~i. :~ '.: :'~ ~ ~ Nil.' ~lII."...i" Ii ~ , .~ , ., 1.~:H.,- J~"",.,:""I . "'~".: .'.'._, .'." t Dear Mr. Thomson: This is in response to your letter of January 25, 1974, inquiring whether a capital expenditure, for which the City may be reimbursed at some future time, may never- theless qualify as a priority expenditure under Section 103(a)(2) of the State and Local Fiscal Assistance Act of 1972 (31 D.S.C.A. l222(a)(2)). Additionally, you inquired as to the status of the legal, administrative and other expenses incurred as a result of an authorized capital ex- penditure. As you know, Section 103(a) (2) of the Act provides that revenue sharing funds may be expended for all ordinary and necessary capital expenditures authori~ed by law. It is our position that the possibility of a future repayment to the City for a capital expenditure authorized by law does not negate its status as a priority expenditure under Section 103(a)(2) of the Act. Furthermore, all administrative, legal and other expenses required for the culmination of the proposed capital expenditures are. also classified as priority expenditures under the Act. On~e the funds are so expended in accordance with the Act, upon repayment, they are freed of the restrictions applicable only to revenue sharing funds. Should you have further questions concerning revenue sharing,. please call or write. J~:J4 William H. Sager Chief Counsel Office of Revenue Sharing Mr. John R. Thomson City Hanager 276 Fourth Avenue Chula Vista, California 92010 r; r~ ,-. ." , 'I r n :L.~ l... ~J ,1_ I .. .~ ..' C.-r\i '. i! I 1\ ~ , C r~ L' ~ - ,', ,. , FEB4 ~~1;A i\. ~1. . P. M. ~lSI9pClllil':'lll2i:.q41~lS . ~\ ,1/9_2) , ---,...---;,,_. Form No. . CA 102 7-66 CERTIFICATE OF CITY FINANCE OFFICER Certification of Unappropriated Balance I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. cC' Amount $ Ie' c-:(.";[ / Fund /'" {'1-:'~ ~'/z/ ~ Purpose ;: fiJc?',dG- /H,'i',,~ ~~d/ hr- . Ik-v ;;-di. ~.L{' -' v~-1?'W f- ~ 6:C~ (" 'V. I / ~ d ,/<%~~~(~ Finance Officer The City of Chula vista Bidder 1/" /!'t.4'-) ;/;~ ~~ . .:J1 ri,/ '4 d Zr.3.. / ~ l Date / "7 ,," '11./ ..- .,7 c:.;- By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and oblig- ation to be incurred by the contract or agreement author- ized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies antic- ipated to corne into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ Finance Officer The City of Chula Vista By Date Dept./Activity Fund Purpose Bidder Certificate No. ~.1(C{j