SR-506-001-01 (6)
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Counc1.l Meet~ng:
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Santa Monl-ca,
July 9, 1985
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Callfornla
TO: MAYOR AND CITY COUNCIL
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FROM: Clty Staff
SUBJECT: AUTHORIZE THE CITY MANAGER TO RETURN TRANSPORTATION
DEVELOPMENT ACT FUNDS TO THE COUNTY AUDITOR TO BE HELD
IN RESERVE FOR TRANSIT CAPITAL PROJECTS
Introductlon
Th1.s report requests that Clty Councll author1.ze the Clty Manager
to return Transportat1.on Development Act (TDA) funds to the
County Audltor to be held In reserve for the City's future bus
and ral.l caplta1 projects.
Background
Durlng both FY1983-84 and FY1984-85 Santa Monlca MunJ.clpal Bus
Llnes (SMMBL) experJ.enced hlgher than antic1.pated operatJ.ng
revenues and lower than antlclpated operatlng costs.
As a
result, the C1.ty's use of ltS formula share of state TDA funds
for operatlng purposes was below budget.
These operatlng savlngs
allow
the remalnJ.ng TDA funds to be reprogrammed for capltal
purposes.
In order to reprogram the TDA funds, the Southern Callfornla
ASSOC1.atlon of Governments (SCAG) requires that a revised TDA
clalffi be submltted to the Los Angeles County Transportat~on
COmmlSS1.0n (LACTC) for thelr reVlew and approval. Transportatlon
Department staff submltted a rev1.sed TDA clalm to LACTC In
January 1985.
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The revlsed clAlt ldentlfled a comblned F~83-84 and FY1984-85
TDA savlngs of $3,560,646 and requested that $2,560,646 be
reserved for future bus purchases and $1,000,000 be added to the
City's Rall Reserve account establlshed by the City Councl1
through an agreement wlth the LACTC in July 1984. These
capltal reserve funds wl11 be held by the County Audltor untl1
needed by Santa Monlca.
LACTC staff revlewed the Clty'S revlsed TDA clalffi and the
Commlss1on approved the Clty'S request on June 26, 1985.
Because of the tlme delay in approvlng the Cl ty' s revised TDA
clalm, the Cl ty recelved TDA funds ln excess of 1 ts immedlate
needs. After LACTC staff approved the revised clalID, SCAG
wlthheld payment of SMMBL's TDA allocatlon for June 1985.
Therefore, the amount of reprogrammed funds to be returned is
$3,045,596 ($3,560,646 less $515,050 June payment Wl thheld and
transferred to reserve for future bus purchases).
Budgetary/Flnanclal Impact
The authorlzatlon to return $3,045,596 to the County Audltor wll1
provlde for a $1,000,000 lncrease ln the Clty'S Ral1 Reserve (to
a total of $6,600,000 plus interest) and a $2,045,596 increase In
the Clty'S reserve for future bus purchases.
The bus reserve lncrease wl11 enable the purchase of the 27
replacement buses included ln the Transportatlon Department's
FY1985-86 budget. Funds required for thlS purchase wlll be
returned to the Clty later In the year when the buses are
dellvered.
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Recororoendatlon
It lS recororoended that City Councll authorlze the Clty Manager to
return Transportatlon Development Act funds ln the amount of
$3,045,596 to the County Auditor to be held in reserve for the
Clty'S future tranSlt capital projects.
Prepared by: J. F. Hutchlson, Director of Transportatlon
J. L. Shelton, Senior Administratlve Analyst
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