HomeMy WebLinkAbout1992-01-14 - AGENDA REPORTS - PROPOSITION A FUNDS EXCHANGE (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
AGENDA REPORT
City Manager Approval
Item to be presented b
John E. Medina
January 14, 1992
PROPOSITION/IA FUNDS/EXCHANGE
{.1 Y,
The Los Angeles County Transportation Commission has advised that the present economic
situation is resulting in less sales tax revenue designated for transit purposes than anticipated
(approximately 20 % Tess). The City of Santa Clarita will receive approximately $270,000 less
in Proposition A funding and $520,000 in TDA Funds. This reduction impacts our Transit
System and TDA funding which has been budgeted for transportation related capital
improvement projects. Each public agency now is challenged with methods of adjusting their
operating and capital program budgets to allow for this revenue shortfall.
Discussion
The City of Diamond Bar has offered to trade $400,000 of Proposition A Funds in
exchange for General Fund money similar to our $600,000 exchange in April of 1991.
The benefit to the City of Diamond Bar would be that it could then use the General Fund
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.
Financial Impact
The rate of.exchange offered is $.65 of General Fund money per $1.00 of 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:
Proposition A Funds from Diamond Bar can help reduce the impact of the 20% Prop A
and Transportation Demand Act Funds (TDA) reduction.
APPROVED Ag¢nJallem —Z`
Propositon A Funds/Exchange
January 14, 1992
Page 2
The exchange would result in the City providing $260,000 of General Fund money from
currently funded Capital Projects in exchange for $400,000 Proposition A money. The
Proposition A funds would replace TDA funding of capital projects; the TDA funds
would then replace the $260,000 General Fund money used to buy the $400,000; and
also result in $140,000 of additional money to offset Transit funding losses. Attachment
"A" indicates recommended budget transfers.
The City of Diamond Bar has been advised of our intent to purchase the Proposition A
money contingent upon confirmation by Council. Other cities had also expressed interest
in the exchange of the funding.
1. The City Council authorize an exchange of $260,000 of the City General Funds for
$400,000 of the City of Diamond Bar'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.
1
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. .
ATTACHMENT
Recommended Budget Transfers
JEM:gmm
PROP.A/WPerf
A.
11
C.
ATTACHIvIBNT A
BUDGET TRANSFER FLOW
$260,0001991-92 Budgeted Capital Project General Fund Money to Purchase $400,000
Prop A Money
FROM
AMOUNT
1. Ave. Ronada $90,000
2. Solon Slurry $100,000
3. Whites Canyon Signal Upgrade $100,000
TO
General Fund Contingency
General Fund Contingency
General Fund Contingency
EUPACT: $260,000 General Fund
Available to purchase $400,000
Prop A $
Upon Receipt, Use of $400,000 Prop A to make TDA $ Available
FROM TO
1. $400,000 Prop A Rail Station $168,320
Corp. Yard $231,680
400 000 Prop A
Permits Budgeted TDA Money for these Projects to be used elsewhere
FROM AMOUNT TO
1. Rail Station $168,320 TDA Contingency
2. Corp Yard $231,680 TDA Contingency
400 000 '
$400,000 TDA. Contingency Now Available to Replace General Fund Money from
Projects (A above) Used to Purchase Prop A Money
FROM
AMOUNT
TO
1. TDA Contingency $60,000 Ave. Ronada
2. TDA Contingency $100,000 Solon Slurry
3. TDA Contingency $100,000 Whites Canyon Signal Upgrade
Total TDA Used $260,000
Balance. TDA Available $140,000
E.
2.
JEM:gmm
prop.a/WPerf
Apportionment of Available $140,000 TDA Funds
Transit System Reserves
Corporate Yard
Corporate Yard 1991-92 Budget
$ 50,000
MOO
$140,000
$1,160,000 General Fund
*$ 690,000 TDA
*Note: TDA Funds expected to be reduced by 20 % as advised by the LACTC.
$690,000 TDA budget subject to 20% reduction
$231.68 Not subject to 20% reduction (now Prop A/part of Prop A Exchange)
$4589320 TDA still subject to 20% reduction
20% of $458,320= $91,664 expected to not be received
$90.0 Added to Funding from E-2 above
$ 1,664 TDA shortfall still existing/to be adjusted in
the future