TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Mark Leyman, Parks and Recreation Director
Jan Buike, Community Programs Manager
Libby Bretthauer, Senior Financial Analyst
SUBJECT:Title
Consideration of a Resolution Approving the Purchase of Proposition "A" Local Return Funds from the City of Lancaster (Finance Director Charelian and Parks and Recreation Director Leyman).
ADOPT RESOLUTION NO. 21-0002
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 20-0123 approving the Proposition "A" Local Return Funds Exchange Agreement with the City of Lancaster for the purchase of Proposition "A" Local Return Funds.
Body
FISCAL IMPLICATIONS:
Proposition "A" Local Return Funds are based on a Los Angeles County half-cent sales tax, which is distributed to cities on a per capita basis. These funds are used exclusively to benefit public transit services. Like other sales taxes, these funds are likely to be impacted by an economic downturn.
Fiscal Year (FY) 2020-2021 Proposition "A" Local Return Fund revenues are estimated at $673,061 and operating expenditures for the Dial-A-Ride program and other transit services are budgeted at $941,812. To cover this deficit of $268,751, the Adopted Budget included a transfer from the General Fund.
Staff was successful in securing an exchange of funds with the City of Lancaster at 70 cents on the dollar. Per this agreement, the City will send $188,125 in General Fund money to the City of Lancaster in exchange for receiving $268,750 in Proposition "A" Funds to cover the anticipated deficit.
BACKGROUND:
During FY 2019-2020, the City Council authorized staff to exchange General Fund dollars for Proposition "A" Funds to supplement the transportation budget. Exchanges of this type are common amongst municipalities and serve to benefit both parties i...
Click here for full text