HomeMy WebLinkAboutAgenda Report - June 16, 2004 E-10AGENDA ITEM ,;.or ID
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AGENDA TITLE: Approve the Transfer of General Fund Capital Improvement Funds to the
Transit Fund to Correct Deficit
MEETING DATE: June 16, 2004
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council approve the transfer of General Fund Capital
Improvement Funds to the Transit Fund to correct deficit.
BACKGROUND INFORMATION: At the April 26, 2004, City Council meeting, options for curing the
negative $887,238 Transit fund balance were presented and
discussed. This amount is the remaining deficit in the Transit Fund
after various Street and Impact Fee Fund transfers were made. The
City Manager directed staff to return to Council with recommendations on this matter. Staff considered the
following options:
Option_ 1: Obtain a Measure K advance of Local Street Repair (LSR) funds for future street projects
within the Impact Mitigation Fee (IMF) Program. This option is a "Spend to Get" program wherein the
City would not actually receive the funds until the project had been paid for. A listing of the projects and
the forecast year of funding is provided in Table 1, Exhibit A. Taking an advance of LSR funds will result
in a commensurate reduction in the quarterly payment the City receives.
Option 2: Delay Measure K LSR funded projects. Transfer the Measure K LSR funds to the Transit
Fund. In the current fiscal year, fund balance is not sufficient to significantly improve the Transit Fund
balance. Table 2, Exhibit A presents suggested maintenance projects and costs that might be deferred
in the next two fiscal years.
Option 3: Transfer General Fund Capital funds to the Transit Fund. Funds are available now for this
transfer.
New Option 4: Transfer Streets Impact Mitigation funds to the Street Fund and then from the Street Fund
to the Transit Fund by accelerating the reimbursement schedule for Existing Facilities. In explanation,
the IMF Program includes a project that reimburses the General Fund — Street Fund for facilities
constructed prior to 1991 that had excess capacity that is being used to serve new development. Each
year a percentage of the IMF Streets (Local and Regional) revenues are transferred to the Street Fund.
The current balance owed to the Street Fund is $916,993. This amount of cash is not available, so this
option means setting up an IMF interfund loan.
Recommendation from staff is that we use Option 3. This is the only alternative that can be done now.
We also note that many of the projects that are part of the deficit Street Funds were used in part to
construct; the Multimodal Station, the Parking Structure, and Elm Street.
APPROVED:
TDA Fix.doc
n Flynn, City -Manager
6!9!2004
Approve the Transfer of General Fund Capital Improvement Funds to the Transit Fund to Correct Deficit
June 16, 2004
Page 2
FUNDING:
90222dF Zeza�
J mes Krueger, Finance Director
�2�'w 1) -
Richard C. Prima, Jr.
Public Works Director
Prepared by F. Wally Sandelin, City Engineer, and Rebecca Areida, Management Analyst
RCP/FWS/RAlpmf
Attachments
TDA Fix.doc 61712004
Project Name
Lower Sacramento Road
Century Blvd.
Ham/Harney Traffic Signal
Lodi Ave.
Vehicle Maintenance Shop Expansion
Project Name
Pine Street Overlay
Turner Rd. Overlay
Central City Railroad
Exhibit A
Table 1
IMF Projects
Project Cost
$120,000
$205,000
$150,000
$75,000
$238,000
Table 2
Measure K Projects
Project Cost
$200,000
$550,000
$300,000
Year
2005
2005
2006
2006
2006
Year
2004/2005
2005/2006
2005/2006
IMF Fund
Storm, Parks & Rec
Storm, Parks & Rec, Local Streets
Local Streets
Local Streets
Local Streets
RESOLUTION NO. 2004-120
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
TRANSFER OF GENERAL FUND CAPITAL IMPROVEMENT
FUNDS TO THE TRANSIT FUND TO CORRECT DEFICIT
WHEREAS, at the April 26, 2004, City Council meeting, options for curing the negative
$887,238 Transit fund balance were presented and discussed; and
WHEREAS, this amount is the remaining deficit in the Transit fund after various Street
and Impact Fee fund transfers were made; and
WHEREAS, the following are options to cure the deficit:
Option 1: Obtain a Measure K advance of Local Street Repair (LSR) funds for future street
projects within the Impact Mitigation Fee (IMF) Program. This option is a "Spend to Get"
program wherein the City would not actually receive the funds until the project had been paid
for. Taking an advance of LSR funds will result in a commensurate reduction in the quarterly
payment the City receives.
Option 2: Delay Measure K LSR funded projects. Transfer the Measure K LSR funds to the
Transit Fund: in the current fiscal year, fund balance is not sufficient to significantly improve
the Transit Fund balance.
Option 3: Transfer General Fund Capital funds to the Transit Fund. Funds are available now
for this transfer.
New Option 4: Transfer Streets Impact Mitigation funds to the Street Fund and then from the
Street Fund to the Transit Fund by accelerating the reimbursement schedule for Existing
Facilities. In explanation, the IMF Program includes a project that reimburses the General Fund
— Street Fund for facilities constructed prior to 1991 that had excess capacity that is being used
to serve new development. Each year a percentage of the IMF Streets (Local and Regional)
revenues are transferred to the Street Fund. The current balance owed to the Street Fund is
$916,993. This amount of cash is not available, so this option means setting up an IMF
interfund loan.
WHEREAS, staff recommends Option 3. This is the only alternative that can be done
now. Many of the projects that are part of the deficit Street Funds were used in part to
construct the Multimodal Station, the Parking Structure, and Elm Street.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
Option No. 3 to correct the Transit Fund deficit.
Dated: June 16, 2004
I hereby certify that Resolution No. 2004-120 was passed and adopted by the Lodi City
Council in a regular meeting held June 16, 2004, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hitchcock, Howard, and Land
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS -- Mayor Hansen
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2004-120