HomeMy WebLinkAbout1993-09-14 - AGENDA REPORTS - PROPOSITION A FUNDS EXCHANGE (2)AGENDA REPORT
City Manager Approv1�4OZ
Item to be presented
Steve Stark 7 l
CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND:
September 14, 1993
Proposition A Funds Exchange
Finance
The City of Walnut has offered to trade $200,000 of Proposition A funds in exchange for General
Fund money to any municipality or public agency. The benefit to the City of Walnut would be that
it could use the General Fund money for any city expenses; whereas, Proposition A funds are
limited only to transit related expenses. The rate of exchange offered is $0.65 of General Funds
per $1.00 of Proposition A money. The City of Santa Clarita has participated in two other
exchanges in the past at the same rate.
The additional Proposition A funds from Walnut would replace some of the Transportation
Development Act (TDA) Article 8 funds used in the funding of our transit system. Those TDA
funds replaced by the Proposition A money can be used either to provide funds for additional
roadway projects or to release General Fund money budgeted for roadway projects to be used
for other City programs.
To participate in the exchange, the City would need to provide $130,000 of City General Funds
for $200,000 Proposition A money from the City of Walnut, resulting in $70,000 of additional
money that can be used for_ general city expenses, whether they be roadways or other city
programs.
RECOMMENDATION:
The City Council authorize the exchange of $130,000 of City General Funds for $200,000
of the City of Walnut's Proposition A Funds.
Authorize the City Manager to execute a standard assignment agreement to accomplish the
exchange upon approval by the City Attorney as to form.
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APPROVED