HomeMy WebLinkAboutAttachment reso mid-yr budget- CALIFORNIA
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INCORPORATED
City Council Staff Report
March 5, 2013
ITEM
Staff Report: Resolution of the City Council of the City of National City Authorizing Mid -Year
Budget Adjustments by Approving the Designation of the General Fund Contingency Reserve,
and Establishing a Self -Replenishing Environmental Monitoring Account; and Ratifying Actions
Related to the Appropriation of Funds for the 125th Anniversary, and the Acceptance of San
Diego County Law Enforcement Foundation Grant Funds.
BACKGROUND
At the City Council meeting of February 19, 2013, the Department of Finance presented a Mid -
Year Budget Review. The Review was based upon staff's analysis of revenue and expenditure
data for the first half of the 2013 Fiscal Year, as well as an analysis of the City's audited
financial statements. Based upon said analysis, the Mid -Year Budget Review included a
recommendation to designate $9,085,066 of unassigned fund balance as the City's Contingency
Reserve as of June 30, 2012 and to establish a $19,999 appropriation in the Underground Tank
Monitoring account of the Engineering Division for environmental compliance expenses. The
purpose of this requested Council action is to adopt a resolution enacting these
recommendations.
The mid -year analysis also identified clean-up actions that are required related to budgetary
adjustments that have occurred during this time period. This report further seeks to ratify these
adjustments, thereby closing out all identified action items associated with the first half of the
fiscal year.
DISCUSSION
The Contingency Reserve recommendation is based upon Council's policy that bases the reserve
upon the City's General Fund unassigned fund balance. The total, $9,085,066, is derived from
the June 30, 2012 unassigned fund balance of $10,708,984, adjusted downward by $712,337 for
encumbrances and $911,581 received by the City as a taxing entity from the true -up payment of
the Successor Agency to the Community Development Commission as the National City
Redevelopment Agency ("Successor Agency") but held pending the outcome of litigation
regarding the true -up payment.
The recommended appropriation of $19,999 for underground storage tank monitoring is the
amount agreed upon by the City and the San Diego County Department of Environmental Health
for a self -replenishing account for "environmental compliance" expenses.