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HomeMy WebLinkAbout2004-12-13 Ordinance 4857ORDINANCE NO. 4857 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2004-05 TO TRANSFER THE INFRASTRUCTURE RESERVE IN THE AMOUNT OF $35,881,000 FROM THE GENERAL FUND TO THE CAPITAL FUND The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 28, 2004 did adopt a budget for fiscal year 2004-05; and B. On December 3, 2002, the City Auditor issued an audit report on the Long Range Financial Plan containing audit recommendations to move the Infrastructure Reserve from the General Fund to the Capital Projects Fund and retain unspent project funds in the Capital Projects Fund; and C. On June 28, 2004, the City Council adopted a Capital Fund Reserve policy in accordance with the City Auditor's recommendations; and D. In order to implement the City Auditor's recommendations and the Capital Fund Reserve policy, the Infrastructure Reserve must be transferred from the General Fund to the Capital Fund. As a result of this transfer unspent monies from the Infrastructure Management Plan (CityWorks) projects will be returned to the Infrastructure Reserve and be retained within the Capital Fund. Investment Income from this reserve will also be retained within the Infrastructure Reserve to fund future capital p"roject needs; and E. City Council authorization is needed to amend the 2004-05 budget to implement the audit recommendations and policy as hereinafter set forth. SECTION 2. The General Fund Infrastructure Reserve in its entirety in the amount of $35,881,000 is hereby transferred from the General Fund to the Capital Fund. SECTION 3. As specified in Section 2.28.080(c) of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 4. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. \ INTRODUCED AND PASSED: December 12, 2004 AYES: BEECHAM, BURCH, CORDELL, FREEMAN, KISHIMOTO, KLEINBERG, MOSSAR, MORTON, OJAKIAN NOES: ABSTENTIONS: ABSENT: ATTEST: ~~.~ City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Mayor ~ Director Services Administrative