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RESOLUTION (ID # 2531) DOC ID: 2531
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Budget Amendment
From: Allen Parker M/CC Meeting Date: 06/03/2013
Prepared by: Allen Parker, (909) 384-5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Appropriations of Additional Funds for Bankruptcy Services in FY 2012/13 and for Debt Service
Obligations for Series 1996 Lease Revenue Refunding Bonds and Series 1999 Refunding
Certificates of Participation(COP) for FY 2013/14. (#2531)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred,but not yet processed.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
Please refer to attached memo.
City Attorney Review:
Supporting Documents:
Budget Amendments Report (PDF)
Resolution- Budget Amendment (PDF)
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Updated: 5/30/2013 by Linda Sutherland Pac-6t Pg,402'
Mayor and Common Council
Agenda Report
TO: MAYOR AND COMMON COUNCIL
FROM: ALLEN PARKER, CITY MANAGER
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DATE: May 30, 2013
SUBJECT: BUDGET AMENDMENTS m
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SUMMARY a
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At the conclusion of the 3rd quarter in the 2012-13 fiscal year, the City's financial health is slowly c
improving as the budget measures approved through the Pre-Pendency and Pendency Plan are
implemented. Overall, General Fund revenues and expenses continue to reflect the budget
approved by the Mayor and Common Council in April. It is staff's belief the anticipated cash and
fund balances for the current fiscal year will be achieved. _
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Despite the anticipated performance of the City's finances, the City must make adjustments to
accommodate necessary budget amendments for this fiscal year and unanticipated expenses for c
next fiscal year. Specifically, the budget allocation established for bankruptcy activities for the a
current fiscal year has been reached, and pursuant to the City's municipal code, a
adjustments/transfers in excess of $25,000 require Mayor and Common Council approval. r
Additionally, the City has been made aware by the State Department of Finance that debts
transferred to and paid for by the Economic Development Agency (EDA) and the Successor N
Agency have been deemed ineligible, and therefore, these obligations are to be paid by the City. .00_
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Staff Recommendation g
Staff recommends that the Mayor and Common Council authorize:
1) Appropriation of an additional $1.9 million to fund anticipated bankruptcy services through M
June 30, 2013; N
2) The city manager to amend the Fiscal Year 2013-14 Budget to include additional debt
service obligations for the following two debt obligations; i) Series 1996 Lease Revenue 0
Refunding Bonds for the financing of City Hall improvements in the amount of (D
$794,892.50; and ii) Series 1999 Refunding Certificates of Participation (COP) for the w
financing of Police Station and South Valle 201 building improvements in the amount of CD
$1,142,950, E
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Discussion a
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Bankruptcy Services m
To date, the City has expended $2,174,000 on bankruptcy services. These services include E
those provided by the City's bankruptcy counsel, financial advisor, labor counsel, actuarial
services, and other contracts which have provided support services. At the time of the City's
filing, anticipated bankruptcy costs were unknown. Over the past several months, bankruptcy a
related costs have fluctuated based on activities required by the Bankruptcy Court process.
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Mayor and common Council
May 30, 2013
Page 2 of 2
Given the City's financial condition, staff continues to take the prudent approach to budgeting by
allocating funds based on anticipated amounts necessary for essential services. Based on
continued activity by the City's bankruptcy counsel these costs are necessary and required for
the City to continue through the bankruptcy process. Based on services provided and
anticipated activities, an additional allocation of $1.9 million is necessary to meet the City's C
obligation for fiscal year 2012-13.
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Debt Obligations
On May 17, 2013, the Successor Agency received correspondence from the State Department of
Finance (DOF) regarding its submission of its 3`d Recognized Obligation Payment Schedule
(ROPS). Following a meet and confer with the DOF, the Successor Agency has been informed o
debt obligations previously paid from available tax increment and redevelopment property tax
trust fund (RPTTF) monies are ineligible for payment going forward from these sources. a
Therefore, the City must provide funding to meet these obligations. o
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Listed below are the specific details of the debt obligations which were determined as ineligible
by DOF: o
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Issue Date Purpose Annual Payment Est. Outstanding Debt a
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1996 City Hall Project $794,892.50 $7,710,000
1999 Police Station /201 $1,142,950 $9,825,000
South Valle Building=
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Totals: $1,937,842.50 $17,535,000 0
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FINANCIAL REVIEW o
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The allocation of additional resources towards bankruptcy services will be off-set by anticipated 0
reductions in General Fund expenditures for FY 2012-13. W
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Additional allocations for debt service payments will be drawn from anticipated General Fund N
revenues for FY 2013-14. The impact of the staff recommendation will result in a reduction of
$1,937,842.50 of year end cash as of June 30, 2014 in the General Fund. 0
Recommended General Fund Allocations �
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FY 2012-13 E
Bankruptcy Services $1,900,000 d
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FY 2013-14 Q
Debt Service Obligations $1,937,842.50
Total General Fund Allocation $3,837,842.50 m
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1 RESOLUTION NO.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO AUTHORIZING THE APPROPRIATION OF 3
4 ADDITIONAL FUNDS FOR BANKRUPTCY SERVICES IN FY 2012/13 AND FOR �
DEBT SERVICE OBLIGATIONS FOR SERIES 1996 LEASE REVENUE REFUNDING m
5 BONDS AND SERIES 1999 REFUNDING CERTIFICATES OF PARTICIPATION o
6 (COP)FOR FY 2013/14.
7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE U-
CITY OF SAN BERNARDINO AS FOLLOWS: c
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9 SECTION 1. The City Manager and the Director of Finance are hereby a
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lo authorized to amend the Fiscal Year 2012-13 Budget to appropriate an additional $1.9 million o
11 to fund anticipated bankruptcy services through June 30, 2013. a
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SECTION 2. The City Manager and the Director of Finance are hereby a
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14 authorized to amend the Fiscal Year 2013-14 Budget to include additional debt service
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15 obligations for the following two debt obligations: i) Series 1996 Lease Revenue Refunding
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16 Bonds for the financing of City Hall improvements in the amount of$794,892.50; and ii) Series c
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1999 Refunding Certificates of Participation (COP) for the financing of Police Station and o
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South Valle 201 building improvements in the amount of$1,142,950.
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Packef Pg.405
8.C.b
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AUTHORIZING THE APPROPRIATION OF
2 ADDITIONAL FUNDS FOR BANKRUPTCY SERVICES IN FY 2012/13 AND FOR co
3 DEBT SERVICE OBLIGATIONS FOR SERIES 1996 LEASE REVENUE REFUNDING Y
BONDS AND SERIES 1999 REFUNDING CERTIFICATES OF PARTICIPATION
4 (COP)FOR FY 2013/14.
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5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and ,o
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Common Council of the City of San Bernardino at a meeting thereof, held on
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8 the day of , 2013, by the following vote,to wit: c
9 Council Members: AYES NAYS ABSTAIN ABSENT
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10 MARQUEZ c
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JENKINS o
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VALDIVIA a
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14 SHORETT
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JOHNSON c
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MCCAMMACK y
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19 Georgeann Hanna, City Clerk N
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The foregoing Resolution is hereby approved this day of ,2013.
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23 Patrick J. Morris, Mayor a,
City of San Bernardino
24 Approved as to
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28 Jafi#F. Penman s
i Attorney
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