HomeMy WebLinkAboutAgenda Statement 1977/04/26 Item 25CITY OF CHULA VISTA
- ~ ~ ~ COUNCIL AGENDA STATEMENT
ITEM TITLE
ITEM NO
25
FOR MEETING. OF: 4/26/77
Resolution 860 9: Appropriating Federal Anti-Recession Funds
SUBMITTED BY~~~irector of Finance
ITEM EXPLANATION
The Public Works Employment Act of 1976 (Public Law 94-369) was passed on July 22,
1976, effective as of July 1, 1976. Title Two of this Act, designated as Anti-
Recession Fiscal Assistance, provides for five quarterly payments to be made to
state and local governments.
The City of Chula Vista has now received two payments totalling $217,058 for the
Anti-Recession Fiscal Aid program. The funds received must be spent or encumbered
within six months of receipt. Our first payment of $130,539 received November 2,
1976 must be committed or spent by May 23, 1977; and the second of $86,519,
received January 7, 1977 must be committed or spent by July 8, 1977. The total
amount anticipated in the five quarters of the program is $367,058.
Background
The Anti-Recession Aid Program was implemented to aid state and local governments
in coping with economic recession. According to the December, 1976 (Vol. V, No.2)
Revenue Sharing Bulletin, Anti-Recession Funds may be used "...for virtually any
purpose except outright construction and the initiation of new programs."
EXHIBITS ATTACHED
Agreement Resolution Ordinance Plat Other
Environmental Document: Attached Submitted on
STAFF RECOMMENDATION:
Approval.
BOARD/ COMMISSION RECOMMENDATION:
N/A
COUNCIL ACTION
APPRCVED-
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Chula Vio"La, ~~.-''-:.£ornia
Dated,........."..!~:~..~ 7„~.......,~.....~-
Form A-113 (Rev. 5-75)
Agenda Item 25
p•ag e ~
Conclusion
According to supplement #2 of the Revenue Sharing Advisory Service,
dated December 1976, Anti-Recesion Funds can be spent for salaries and
fringe benefits, Included in fringe benefits are employer's retirement
costs. The principal requirement is that the retirement system costs are
mandatory and not optional. In our particular case the employer's contribu-
tions to the Public Employees' Retirement System are mandatory by contract.
By using Anti-Recession Funds for employer's retirement costs a portion of
the property tax rate allocated for retirement can be shifted to the General
Fund rate without changing our overall tax rate of $1.25. This flexibility
will enable us to meet necessary basic services in employee's retirement
costs and to also provide relief to the General Fund,
Recommendations
1, It is my recommendation that our first payment in the amount of $130,539
be appropriated for employer's contributions to the Public Employee's
Retirement System.
In addition, subsequent quarterly payments for the Anti-Recession Aid
program be appropriated in the same manner to supplement the employer's
contributions to the Public Employees' ~tetirement System.