HomeMy WebLinkAboutResolution 96-31 - Reduction of Reserve for Economic UncertaRESOLUTION NO.
A RESOLUTION OF THE CITY OF HUNTINGTON BEACH
TO REDUCE THE CITY'S RESERVE FOR ECONOMIC UNCERTAINTIES
WHEREAS, the City Council approved Resolution No. 6600 on June 6, 1994,
which created a Reserve for Economic Uncertainties ("the Reserve") in the amount of
Five Million Dollars ($5,000,000), and
The Orange County bankruptcy resulted in certain claims from the General Fund
and the Reserve for Economic Uncertainties and other funds which could also affect the
City's General Fund, and
One-time costs have further reduced the Reserve for Economic Uncertainties, and
It is therefore necessary to reduce the Reserve accordingly,
NOW, THEREFORE, the City Council of the City of Huntington Beach does
hereby resolve, determine and find as follows:
SECTION 1. The City of Huntington Beach Reserve for Economic
Uncertainties is hereby reduced from Five Million Dollars ($5,000,000) to the sum of
Three Million Dollars ($3,000,000).
SECTION 2. This Resolution shall be effective immediately.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 15th day of April , 19n 6
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Res. No. 96-31
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach,. and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council of
the City of Huntington Beach is seven; that the foregoing resolution was passed
and adopted by the affirmative vote of at least a majority of all the members of said
City Council at a regular meeting thereof held on the 15th of April, 1996 by the
following vote:
AYES: Councilmembers: Harman, Leipzig, Bauer, Sullivan, Dettloff,
Green, Garofalo
NOES: Councilmembers: None
ABSENT: Councilmembers: None
City Clerk and ex-officio Clerk of the
City Council of the City of Huntington
Beach, California
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Council/Agency Meeting Held: IS
Deferred/Continued to:
WApproved ❑ Conditionally Approved ❑ Denied
'
City Clerk's Signature
Council Meeting Date: April 15, 1996
Department ID Number: AS 96-010
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
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SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBE
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administ
PREPARED BY: ROBERT J. FRANZ, Deputy City Administr
SUBJECT: RESERVE FOR ECONOMIC UNCERTAINTIES FUN
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachments)
Statement of Issue: Reduction in the amount of the Reserve for Economic Uncertainties
Fund.
Funding Source: Fund Balance -Reserve for Economic Uncertainties Fund
Recommended Action: Approve Resolution No. 9631 reducing the amount in the Reserve
for Economic Uncertainties Fund to $3,000,000.
Alternative Action(s):
'I. Do not reduce the Reserve for Economic Uncertainties Fund.
2. Reduce the Fund by a different amount.
Analysis: On June 6, 1994 the City Council approved Resolution 6600 which created a
Reserve for Economic Uncertainties Fund of $5,000,000. This amount represented the
desirable fund balance (approximately 5% of the General Fund budget) and also allowed the
City to increase the Tax and Revenue Anticipation Notes issued July 1, 1994 by $5,000,000.
The Orange County Bankruptcy resulted in claims from the General Fund of $368,357 and
the Reserve for Economic Uncertainties Fund of $478,156. Claims in other funds could also
affect the General Fund. Use of the General Fund reserve for unanticipated costs and one-
time costs has further reduced the reserve. Our current estimate of the September 30, 1996
reserve is $3,002,126.
Rt:QUEST FOR COUNCIL ACTIUN
MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: AS 96-010
Environmental Status: None
Attachment(s):
Resolution 964 31
0017925.01 -2- 03/29/96 2:31 PM
INITIATING DEPARTMENT: Administrative Services
SUBJECT: Reserve for Economic Uncertainties Fund
COUNCIL MEETING DATE: April 15, 1996
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement Unbudget, over $5,000 Not Applicable
Bonds If applicable) Not Applicable
Staff Report If applicable) Not Applicable
Commission, Board or Committee Report If applicable) Not Applicable
Find in s/Conditions for Approval and/or Denial Not Applicable
REVIEWED RET'URNED FOR` DED;
Administrative Staff )
Assistant City Administrator Initial w
City Administrator Initial
City Clerk ( )