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Home My WebLink AboutJUNE 26,1980 CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK I'=~ FUND TRANSFERS 1 25:0065 MINUTES ADJOURNED REGULAR MEETlliG CITY COUNCIL OF THE CITY OF ARCADIA JUNE 26, 1980 The City Ceuncil of the City of Arcadia, California met in an adjourned regular sessien on June 26, 1980 at 7:00 p.m. in the Arcadia City Hall Cenference Room. PRE SENT : ABSENT : Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino Nene Continuing the censideration of pertiens of the prepesed budget for the fiscal year 1980-81. The Finance Director submitted an estimate of Apprepriation Limitations using the most recent figures for Consumer's Price Index, Personal In- come and Population Change and the budgets subject to limitations as approved by the City Council at its adjourned regular meeting ef June 24, 1980. Fel1ewing the discussien cencerning the computatien of the Apprepriation Limitation staff reviewed the data prepared by the City Auditors fer the City, Fred Lunghard, CPA. The 1978-79 Appropriations subject to. Limitations is made up ef the following: Authorized Apprepriations (tetaling) Reserves for Loans to ARA Garage Inventery Petty Cash Equipment Replacement Self Insurance Fund Encumbrances $ 9,443,587 92,419 50,000 1,500 45,000 620,000 183,017 $10,435,523 The State Controller, Independent Auditer and City staff recommended that the Unallocated balance be transferred to a Special Reserve Fund. It was neted that the Propesitien 4 (Gann Initiative) Section 5 prevides that the City may increase its fiscal flexibility by appropriating monies into a Centingency er Emergency Fund, which weu1d make it pessible for the Council to expend from this fund at a future date witheut regard to. the limitations limit at that time. It was recommended that a contingency, emergency or construction fund be established this month for the transfer of the unallecated balance in the General Fund at the close ef fiscal year 1979-80. Appropriatien Limitation - Estimate fer 1980-81 1978-79 Appropriations subject to Limitation $ 10 ,435,523 Less: Non-proceeds ef taxes 903,536 User fees exceeding costs -0- 903,536 Base Year Apprepriations 1978-79 $ 9,531,987 -1- 6-26-80 25:0066 1979-80 Medifications .- Base Apprepriation 1978-79 $ 9,531,987 Censumers Price Index increa se 10.2% 972.263 10,504,250 Change in Population decrease .33571. 35,263 Base Apprepriatien 1979-80 10,468,987 1980-81 Medificatiens State Per Capita Personal Income increase 12.7% 1,329,561 1 11,798,548 Change in Pepulation decrease .3398%' 40,095 $11.758,453 1980-81 Appropriation Limitation Proposed Budgets - Funds subject to Limitations General Fund Park & Recr. Fac. Fd. Sewer System Servo Fd. State Gas Tax Fund Capital Outlay Fund $ 10,393,560 16,000 -0- 274,000 490.548 Teta 1 $ 11,174,108 $11,174,108 Budgets below 80-81 Appropriation Limitation $ 584,345 The abeve computations are preliminary and subject to the provisions of SB 1352 and related statutes that will be adopted by the State Legislature. The "Unfunded liability" ef the City for State Retirement has not been excluded frem our Appropriations Limitatien. An analysis from the Legis- lative Analyst and opinion frem Legislative Ceunsel states that it ceuld be censidered "debt service," therefere not sub jec t to the limita tion. City of Arcadia "Unfunded Liability" as of June 30, 1980 is $626,000. Discussion ensued on the transfer of the Unallecated Balance and Ceunci1- man Dring stated in part that altheugh it can be dene legally, in his opinion this action would violate the spirit and intent of Proposition 4 which becemes law July 1, 1980. He then read pertions ef the Propesition relating to. "revenues received in excess of that amount which was appre- priated during the fiscal year shall be returned by revisien ef tax rates or fee schedules within the next two subsequent fiscal years." Councilman Dring centinued in part that the method of how the funds weuld be returned weuld, ef course, have to be determined by the City Council. 1 Councilman Haltom stated in part that it appears to him that an endeavor is being made to qualify fer baileut meney although there are excess funds and felt there must be ways in which to. return the money to the peeple. Councilman Saelid stated in part that there is not much flexibility in the property tax rate which is fixed by State Constitutien. As to the revisien of fees, i. e., sewer service charge, building permit fees, camping fees and the like seem to. be the only realistic ways in which to return money to. the taxpayers. In respense to his inquiry the Finance Directer said there is no. problem in establishing two separate funds. -2- 6-26-80 25:0067 Whereupon Councilman Saelid MOVED to establish a Censtruction Fund and transfer out of the Unallocated Balance in the General Fund at the clese ef the fiscal year 1979-80 $300,000 into that fund and to also establish a Centingency Fund for the balance of the Unallocated Balance in the Gen- eral Fund at the end ef the fiscal year 1979-80. Metion secended by Councilman Gilb and carried en roll call vete as follows: AYES NOES ABSENT: Councilmen Gilb, Saelid, Pellegrino Councilmen Dring, Haltom None EXECUTIVE SESSION and RECONVENED 1 RESOLUTION NO. 4909 ADOPTED RESOLUTION NO. 4910 ADOPTED ADJOURNMENT 1 The City Atterney presented Resolution No. 4909 and read the title: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA ESTABLISHING COMPEN- SATION FOR VARIOUS POSITIONS IN MANAGEMENT AND GENERAL EMPLOYEES FOR THE FISCAL YEAR 1980-81." It was MOVED by Councilman Saelid, seconded by Councilman Gilb and carried on roll call vote as follows that the further reading of the full text be waived and ADOPTED. AYES NOES ABSENT: Councilmen Dring, Gilb, Haltem, Saelid, Pellegrino. Nene Nene The City Atterney presented Reselutien No.. 4910 and read the title: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA ADOPTING A BUDGET FOR THE FISCAL YEAR 1980-1981 AND APPROPRIATING THE AMOUNTS SPECIFIED THEREIN AS EXPENDITURES FROM THE FUNDS INDICATED." It was MOVED by Councilman Gilb, seconded by Ceuncilman Saelid and carried en roll call vetc as follows that the further reading ef the full text be waived and ADOPTED. AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None At 10:30 p. m. the meeting adjourned to 7 p. m. July 1, 1980. ci2,~~,v~~ , Mayer ATTEST: ~ City Clerk -3- 6-26-80