HomeMy WebLinkAbout1991-05-01 - AGENDA REPORTS - PROPOSITION FUNDS (2)NEW BUSINESS
DATE: May 1, 1991
SUBJECT: Proposition
DEPARTMENT: Public
BACKGROUND
AGENDA REPORT
City Manager Approval
Item to be presented by:
John E. Medina
The City of La Canada/Flintridge has selected to trade $500,000 of Proposition
A Funds in exchange for General Fund money. The benefit to the City of La
Canada/Flintridge would be that it could then use the General Find money for
any city expense whereas, Proposition A funding is limited only to transit
related expenses. If a municipality does not have transit expenses where the
funds can be utilized, the money then reverts back to.the Los Angeles County
Transportation Commission for reallocation.
The rate of exchange offered is $.60 of General Fund money per $1.00of
Proposition A.money. The City of Santa Clarita, which has a major expenditure
in transit operations, can benefit in such an exchange by the following:
The exchange would result in the City providing $300,000 of General Fund money
in exchange for $500,000 Proposition A money resulting in $200,000 of
additional money that can be used for general City expenses whether they, be
roadways or other programs at City discretion.
Because of the urgency of the matter, a letter was sent to the City of La
Canada/Flintridge expressing our intent .to purchase the Proposition A money
contingent upon confirmation by Council
RECOMMENDATION
1) The City Council authorize an exchange of $300,000 of City General Funds
for $500,000 of the City of La Canada/Flintridge's Proposition A funds.
2) Authorize the Mayor and City Clerk to execute a. standard assignment
agreement approved as to form by the City Attorney to accomplish the
exchange.
3) Authorize the exchange no earlier than 30 days from the date a project
description describing the exchange is received by the Los Angeles County
Transportation Commission.
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