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HomeMy WebLinkAbout20-City Administrator - CITY 'OF SAN BERtQ:IDINO - REQUEST ()R COUNCIL ACTION Date: November 29, 1994 Subject: Transfer of funds from Parking District Fund to General Fund to pay for Youth Committee programs and outstanding legal fees. From: FRED WILSON Assistant City Administrator Dept: Syno~lsis of Previous Council action: Recommended motion: 'rhat the Finance Director be directed to transfer the amount of $132,216 from the Parking District Fund to the General Fund to repay i~ portion of the outstanding loan to the parking District: that $35,754 of that amount be allocated to fund the Late Night Hoops i~nd Mentoring/Tutoring programs as outlined in the Youth Committee :report and that the remaining balance of $96,462.00 be transi~rip.d to Account #001-092-54102 to fund legal services for the following la\lSuit: Scott vs. City of San Bernardino (~gator lawsuit). ~ Signature Contact person: Fred Wilson Phone: 'i122 Supporting data attached: ves Ward: FUNDING REQUIREMENTS: Amount: $132,216.00 Source: (Acct, No.! 001-092-54102 (Acct, DescriPtion) General fund - Non Departmental Finance:~k~/~ Council Notes: 7S.026~~ Aaenda Item No ~ , ' c "'---". ~ STAFF REPORT In FY 79-80, the General Fund loaned the Parking District $812,763.45 to fund an expansion project involving the downtown Parking District lots. This project involved adding 254 parking spaces to the Parking District. The payback of the loan to the general fund was initially established at an interest rate of 7% with a term of 28 years. The payback of the loan was through an additional assessment on the properties in the downtown Parking District area as well as interest earnings and rental income. That assessment has been collected since FY 80-81 pursuant to the resolution which establishes the mechanics for the collection. The Finance Department recently completed a review of the parking district fund balance at the request of the Parking Commission. The Parking District had accumulated a fund balance as of June 30, 1994, of $334,879. The Finance Department was requested to determine why such a large fund balance existed. This analysis determined that, although the levy of assessments had occurred correctly, the annual transfer of funds from the Parking District to the General Fund to repay the loan had not been transferred in the full amount as outlined in the authorizing resolution. As a result, the Parking District accumulated the fund balance noted above. According to the Finance Department analysis, a balance of $132,216 should be transferred to the General Fund to bring the loan current. This transfer will still leave a fund balance of $202,663 in the Parking District fund. It should be noted that the transfer of funds from the Parking District will not affect the existing loan nor will it change the term of the loan. The proceeds of the transfer are recommended to be allocated as follows: 1. First year funding of the Late MentoringjTutoring Program as outlined Committee Report. -- $35,754. Night Hoops in the Youth 2. Payment of legal services for Scott et al vs. Common council (investigator lawsuit). Through September 1, 1994, the City has incurred approximately $26,000 in legal costs associated with the City's defense in this case. These costs were not anticipated when the budget was prepared. As the case is on appeal, the final costs are not known at this time. Adoption of the form motion is recommended.