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HomeMy WebLinkAboutAgenda Statement 1980/06/24 Item 15 COUNCIL AGENDA STATEMENT Item ,15 Meeting Date 6/24/80 ITEM TITLE: Reso 1 uti on '''15'3 Es tab 1 i shi ng "Reserve for Conti ngency" Accounts and Appropriating Funds Thereto ~ SUBMITTED BY: Director of Finance (4/5ths Vote: Yes No~) The City of Chula Vista wili complete the 1979-80 fiscal year with an estimated un- appropriated fund balance, all funds of $6,606,815. Because of the Gann Initiative (Proposition 4), it is not desirable to carry forward certain unappropriated funds into the 1980"81 fiscal year since these funds, when appropriated, will count against Gann Limits. Funds appropriated during the 1979-80 fiscal year are not affected by the Gann Limit, which is effective July 1, 1980. Therefore, it is my RECOMMENDATION That the City Council authorize the appropriation of the June 30, 1980 unappropriated balances from the following funds into a "Reserve for Contingency" account in each fund. General Fund Sta te Li bra ry Act Fund Sewer Service Fund Parking Meter Fund Transit Service Fund Special Gas Tax Fund Sewer Income Fund Park Acquisition and Development Residential Construction Tax Special Capital Outlay The balances in the reserves established above will later be utilized, with Council approval, for City operation. BOARDS AND COMMISSION RECOMMENDATION: Not Applicable I DISCUSSION " The City of Chula Vista has realized budgetary savings over the years which has resulted in certain fund balances that, if carried forward to fiscal year 1981, will be subject to the Gann Limit. To provide the greatest flexibility in terms of, the City's appropriations limit in future years, it is prudent to appropriate these funds in fiscal year 1980 into a Reserve for Contingency account. Appropriation of funds to a reserve is a legitimate measure, permitted by Section 5 of the Gann Initiative, for exempting money from limits while imposing minimal restrictions on the ultimate use of the funds. FINANCIAL IMPACT Protect City funds from the limits imposed by the Gann Initiative which could prevent the future utilization of available funds. Form A-113 (Rev. 11/79) 10 rS 7/ ,.~ 'J,:. < , 'l' OJ' " " '. I I I I I .. , .. .,.'1 ..-.--....... ;:;~.~~:. ':", . 1,. ", . . ,~ " " d! ',.,' f .......; i",' ~',..,.-'i ~~\: . ... ~ ..... '. ...~. ..r. .' .... ~..:.--~:::;;:.:i\ O~ t'\" C;\Y, I.;"~,, .." ,bY :k, 'e"llor\1li'l. . . \ \/'Io;t':l v~' t.f. ~ Chua'\~""".' ''':''iJ.''' " ..-:;;t , '_ , " , Dated' :-:. " ,.' -- . ~. ; . ,,'-\' ,4 " .~. .' '.- .'. ~"-" .... -' . r uo pan~wqns pa4:>l!:!W :lN3Wn:JOO lVlN3WNOlJI^N3; Ja4:!O I :!sn UOHl!:>~H:!oN -:!l!Ld -a:>Ul!u~pJO X-UOnn'LOSalJ """---"'il,lawaaJ6\f SlI8IHX3 ' . " ..--.... - -......---.