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, • • ORJGit~AL
ORDIHAHCE I10. 3125
ORDlt~AHCE OF THE COtHiCIL OF TlU: CITY OF P,'-',.LO ALTO
A1'1EtmiHG THE BUDGET FOR THE F ISC/\L YE.AR 19 713 .. 7 9 TO
ESTABLISH A!!D/OR PROVlDC FOR ~tOtliES XU CCRTAlt{
SPECIFIED FUHDS
HHER.EAS, pursuant to the provisions nf Section 12 of Article
III of the Char t:er of the. City of Palo Alto, the Counc i 1 on June ll~,
1978, did adopt a budget for fiscal year 1973-79 which included among
other things certain fund balances; and
WHEREAS, fron tiMe to time the Council has amended such pre
viously adopted budget; and
HH.EREAS, the Council finds that the funds established by th.~ .. s
ordinance and the. amounts spectfied in such funds nnd existing funds
are reasonabl.e and proper; and
V.TUE,iH~fS lG7"-197q .;,. t·l-, ~,-;r-.:-1 ·t~·li fi ... ,1 ,, +7 tl"<. Cl.'t· I,, l'U1. •u~.\~' ~ 0 -" .. ~.--> ~.dl. Ld ... , ..... d_ r.J~ ... -.... tiCcL>. ... ear. OJ. .e ' -Y .~
se.lf~innur.:mce li.abilit:,,.. pro<::rnm and the L"elf-insul~ance li.sbility
ftmds should reflect disnuted clair:1s and Dotential liabilities
(:ceserves) comrnen.su:ratc ~>Ji th the exposure· and experience of City
throughout 1978-1979 which could not compll!tely be estinated in
July 1978; and
Y.,7J.mFtEAS J the City 1 s self-insured ~wrke.r • s compensation program
should have a fund ~vhich J:cflects continuine exposures ereated during
the fiscal year and which makes provision for the increasing costs of
cla1.ms for cumulative traur1a and stJ.ess iniuries as ~,,ell· as for those
rehabilitation requirements v.1hich h-:.1ve rcc2nt: ly been estab lis bed~ and
such fund should be established in addition to the operating budget's
insurance costs which do not provide reserve amounts; and
\vHEREAS, 1978 ... 1979 is the in.itial fiscal year of the City's un
employmen1; insurance program mandated by the United StCltes and the
State of California and the rates currently in effect will be modified
based upon actual experience, and those exposures should be reflected
in an unemployment insurance reserve fund providing reserve amounts
rather than in the operating budget's insurance costs; and
WHEREAS, there are currently pending again.st the. Cit~: several
large lawsuits with exposures in the millions of dollars and the
loss of such litieation would require that City pay its judgnents
from available financial resources including fund balances vlhich are
reserves for such contingencies; and therefore, a reserve account
should be established to protect agatns.t such exposures; and
lVllEREAS, City has been planning certain improvements to Alma
Stree.t and desires that the street improvement fund reflect the anti
cipated costs of such improvements;
Nmv, THEREFORE, the Co unci 1 of the City of Palo Alto does
ORDAIN as follows:
SECTIOH 1. The sum of Three Hundred Seventy-five. Thousand
Dollars ($375,000) is appropriated to the self-insurance fund
(general liability) and the fund balance in the capital projects
fund is correspondingly decreased.
• • •
SECTION 2.. The sum of Four Hundr:ed Fifty Thu Jsand Dollars
($450,000) is appt'opriatecl to the self-insu1:ance ~t~orker•s compen
sation reserve fund which is direc·teJ to be established and the
fund balance .in the capital projects fund is correspondingly de~
creased.
SECTION 3. Th(~ sum of 'I\vo Hundred F'i.ftv The ... ~and Do.l Lqrs
($250~(}()(j')is-·appropr iated to the unetTJp 1 O)'"T"H::nt insurance reserve
fund which is directed to be established and the fund balance in
the capital projects fund is correspondingly decreased.
SECTIOH 4, Tbe sum of T\vo Nillion Seven Hundred T\.;enty-five
Thousand Dollars ($2,725,000) is appropriated to the litigation
reserve fund which is directed to be established and the fund
balances in the general ope:catinr, fund and the capital projects
fund are correspondingly decreased.
SECTIOn 5' The SUFI of One ni 11. ion TlHl:C' l!u:ldrt.cd Thot!Stmd
D 11 '"--,·sr-;-r·o-o oc~o-· .·, , ....... ~ .... _, ·J . -l ' ,. -i··"-, ~f., •. ,.,. in···-., .. ,-~ . t o ~rs \._'>1.,.),. ,l .·\) 18 •. .tpptupl~nLL( (.,, t.\c ,\.,_,,_ '"-'-'-' ... •itll··-'"t..men
project in ;.:be st:r,ee.t it'1provement: fond .:mel the. fund ba.LmcQ of the
st1:eet :l::t::'lprovement .fund :i.s co.rrespond.i.ngly de.;:::-:·enst..~d.
~ ,~~-~];QE..,_§.. ,· ·~~': .. Counc~ l £ ~~d ~ . ~h~ ~ t.~\~~ 5. ~~ , i~~~: f :\.~;r o ~~ ~ c ~:~~~·?e: the CdJ .. -LornJ.a Ln\.:u:ont!lent<il Qt.all.t.)' .,.ct. ;_J •. ll>, •. Le .. c .. ,., ... :, ,,{. c:,,,t_rol, ...
mental impact assessment is nece~:;.snry
SECTION l. Tbis ordinance shHll bcc(H'U..! Effective ir:1mediately
as provicrec.r-i.n Section 12 of Article III of the Ch;nter of the City
of Palo Alto and Section 2. 01--t. 3/.) of the P;d~) Alto 1iunicipal Code.
INTRODUCED AND PL~~SSED; June 18, 1979
AYES~ Brenner~ Carey, Eyerly, Fazzino, Fletcher~ Henderson, Sher, ~itherspoon
NOES: None
ABSTENTIONS: None
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