HomeMy WebLinkAboutAbolish Economic Uncertainty Fund Budget to Ensure Single Ge dy — p QW
Council/Agency Meeting Held: OS— 01--0)
Deferred/Continued to: \
Approved ❑ Conditionally Approved ❑ Denied
�-City CleraSignature
Council Meeting Date: May 7, 2001 Department ID Number:
CITY OF HUNTINGTON BEACH o z
REQUEST FOR COUNCIL ACTION o
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SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBER a---<'c-<,
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SUBMITTED BY: RAY SILVER, City Administrator Glh✓ C,D --33.
PREPARED BY: CLAY MARTIN, Director of Administrative Services & Z=�a _
SUBJECT: Adopt Resolution 4a _2A Rescinding Resolutions 96-31 & 6600
Statement ofissue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: With the City Council's recent adoption of 34 new Financial Policies,
there is no longer a need for Resolution Numbers 6600 and 96-31.
Funding Source: N/A
Recommended Action:
Motion to:
1. Adopt Resolutiona00/-- 20 a resolution of the City Council of the City of Huntington
Beach rescinding Resolution No. 6600 and Resolution No. 96-31 and abolishing the
reserve for Economic Uncertainty Fund
Alternative Action(s):
The City Council may make the following alternative motion(s):
1. Do not approve the recommended action and provide staff with appropriate
direction.
REQUEST FOR COUNCIL ACION
MEETING DATE: May 7, 2001 DEPARTMENT ID NUMBER:
Analysis:
BACKGROUND
On June 6, 1994 the City Council adopted Resolution 6600, which created the Reserve for
Economic Uncertainty Fund and established the city's General Fund Reserve at $5 million.
On April 15, 1996, the City Council replaced Resolution 6600 with Resolution 96-31, which
lowered the General Fund reserve from $5 million to $3 million. This change was initiated to
help minimize the impact of the County's bankruptcy and the recession of the mid-1990s.
FINANCIAL POLICIES
At it's April 16, 2001 meeting, the City Council adopted 34 Financial Policies that serve as the
basis for the overall financial management of the city's resources.
The Financial Policies also establish the General Fund reserve at seven percent of the
adopted General Fund adopted budget.
RECOMMENDATION
With the Financial Policy regarding the General Fund reserve in place, staff recommends that
?°which rescinds Resolution 6600 and Resolution the City Council approve ResolutionaOO�"'
96-31.
Rescinding Resolutions 6600 and 96-31 will ensure that there is only one General Fund
reserve policy that has been adopted by the City Council, thereby eliminating any confusion
regarding the city's General Fund reserve policy.
Environmental Status:
N/A
Attachment(s):
City Clerk's
Page Number No. Description
1 Resolution o24O/"oZ a
RCA Author: Grant
RCA Rescinding Resolutions 6600 96-31 -2- 04/26/01 10:55 AM
Attachment 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HUNTINGTON BEACH RESCINDING
RESOLUTION NO. 6600 AND RESOLUTION NO. 96-31
AND ABOLISHING THE RESERVE FOR
ECONOMIC UNCERTAINTY FUND
WHEREAS, on June 6, 1994, the City Council of the City of Huntington Beach adopted
Resolution No. 6600; and
Resolution No. 6600: (a) created that certain fund called the"Reserve for Economic
Uncertainty Fund,"which was to be separate and distinct from the City's General Fund; and(b)
transferred the sum of$5,000,000 from the Unreserved Undesignated General Fund to the
Reserve for Economic Uncertainty Fund; and
The need for the creation of this new fund was the result of the City's then existing fiscal
policies that required the maintenance of a reserve of not less than three percent (3%) of the
General Fund's annual budget; and
On April 15, 1996, the City Council adopted Resolution No. 96-31 which, for the reasons
therein stated, decreased the amount of monies in the Reserve for Economic Uncertainty Fund
from $5,000,000 to $3,000,000; and
Due to recent City Council approved changes to the City's fiscal policies, there is no
longer a need for the Reserve for Economic Uncertainty Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington
Beach as follows:
1. Resolution No. 6600, as well as Resolution No. 96-31, are each rescinded.
2. The Reserve for Economic Uncertainty Fund, created in 1994 by Resolution No.
6600, is hereby abolished.
1
RJW:Rescind 6600&96-31
RLS 2001-0267
Res. No. 2001-20
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 7th day of May , 2001.
Mayor
ATTEST: APPROVED AS TO FORM:
t97 L4� � - �Ilk 01
City Clerk d;-Jo-0l y City Attorney
REVIEWED AND APPROVED: R%dTIATED AND APPROVED:
City A ministrator Ci Administrator
2
RJW:Rescind 6600&96-31
RLS 2001-0267
Res. No. 2001-20
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 7th
day of May, 2001 by the following vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff,
Bauer
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
RCA ROUTING SHEET
INITIATING DEPARTMENT: City Administrator's Office
SUBJECT: Adopt Resolution Rescinding Resolutions 6600 &
96-31
COUNCIL MEETING DATE:
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached
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
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
:REVIEWED RETURNED ;FORWARDED
Administrative Staff
Assistant City Administrator (Initial) ( ) ( )
City Administrator (Initial)
City Clerk ( )
EXPLANATION .FO.R RETU.RN'OF ITEM .
SpaceOnly)
RCA Author: Grant