SR-200-001 (2)
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Santa Nbnlca~ California, Aprll 30~ 1979
TO: Mayor and City Council lIe
FRm1: C1ty Staff MAY 8 1979
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SUBJECT: Consolidatlon of City Account1ng Funds
INTRODUCTION
This report discusses the present status of varlOUS City accountlng funds
and recommends the consolidat1on of these funds wlth the General Fund.
BACKGROUND
The Clty.S accounting system consists of flfty-nlne funds (see Attachment I),
that record revenues and expend1tures and mainta1ns a current status of
Clty finances. Numerous funds have been establlshed over the years for
restricted activlties, enterprlses, grants and bonds, and for collectlon of
property taxes.
Property Tax Funds
Sectlon 606 of the Clty Charter provldes for six spec1f1c purpose funds:
Pa rks ~ r1us 1 C ~ Advert 1 s 1 ng and Recreation. C1 ty Pl ann i ng ~ Li bran es ~
Emergency Care and Rellef of Needy Persons~ and Retirement. These funds
were establlshed in 1946 to levy special purpose property taxes above the
amount necessary to flnance the General Fund (see Attachment II). Each
fund has thus been self-supporting by vlrtue of ltS abillty to levy a
separate property tax rate. Propositlon 13 elimlnated tax rates for
taxlng agenc1es and limlted the tax to 1% of market value. The result1ng
60% tax loss to the city has caused each of the above mentioned funds to
be under-financed thus necessltating the transfer of funds from the
IIG
MAY 8 '979
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To: Mayor and City Council
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Apr1l 30, 1979
General Fund to each of the other property tax related funds. Wlthout
these council approved transfers, the General Fund would not show an
accurate picture of ltS cond1t1on. An alternatlve to these monthly
transfers would be to consolldate the speclal purpose funds with the
general fund. This would simplify accountlng, reporting and other
phases of flnancial management as recommended by the Nat10nal Council
on Governmental Accountlng and stlll allow retention of revenue and
expendlture accounts in a proper, identlfiable and usable manner.
Capital Improvement Fund
Section 6500 of the Munic1pal Code provides for one-fourth of sales
tax collectlon to be placed 1n a capital outlay fund to be used for
capital lmprovements only. Wlth a loss of 60% 1n property tax revenues,
the need for replacement revenue for the general fund becomes most
lmportant. It is recommended that thls one fourth proportion of sales
tax be placed in the General Fund and the rema1nlng funds in the Capital
Improvement Fund to be used for future capital mprovements. ~Ihen the
money in th1S fund 15 exhausted. Council can either re1nstate the
one-fourth portion of sales tax or flnance capital outlay ltems out of
the General Fund.
REC0t<1t'1ENDA T I ON
It 1S recommended that council author1ze the C1ty Attorney to prepare an
ordinance consolldating the MAR (Upland), Plannlng, L1brary, Welfare, Parks
and Retirement Funds with the General Fund and authorize the City Attorney
to change Sectlon 6500.269 to depos1t all monles collected from sales tax In
the General Fund.
Prepared by: Alan P. Melcher
Robert H. Nash
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ATTACHMENT I
To: Mayor and Clty Councll
- 3 -
t1arch 20, 1979
Ci ty Funds
1. General
2. t1US1C, Advertlsing and Recreation - Upland*
3. MUS1C, Advertising and Recreation - Beach
4. Planning*
5. Library*
6. Welfare*
7. Parks*
8. Retirement*
9. CETA I and Admlnlstration
10. CETA VI Employees
11. Communlty Development Block Grant
12. Miscellaneous Grants
13. Bond Interest and Redemptlon - 26th and Cloverfleld
14. Bond Interest and Redemptlon - 1948 - Water
15. Bond Interest and Redemption - 1948 - Municipal Improvements
16. Santa t1on1ca Pler
17. Sanitary Sewer
18. Airport Operating
19. Alrport Depreclation
20. Transportatlon Operatlng
21. Transportatlon Depreclation
22. Cemetery Operating
23. Water Operatlng
24. Water Depreclatlon
25. Parking Meter
26. Traffic Safety
27. State Gas Tax - 2107
28. State Gas Tax - 2106
29. County Road
30. Capltal Improvement
31. Vehicle Replacement
32. Weed Abatement
33. Speclal Aviation
34. Parks and Recreation Facilitles
35. Self-Insurance - Comprehenslve
36. Self-Insurance - Bus
37. Self-Insurance - Auto
38. Self-Insurance - Workers Compensatlo~
39. Sewer - 1948
40. Sewer - 1958
41. State Urban Grant
42. State Bond Act
43. Bond Interest and Redemption - Parking Authority - 1966
44. Bond Reserve Parklng Authorlty - 1966
45. Parking Authorlty Operating
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To: Mayor and City Council
~1arch 20~ 1979
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46. General Trust and Agency
47. Water Consumer Deposit
48. Cemetery Perpetual Care
49. Auditorium Box Office Trust
50. Federal Revenue Sharing
51. Antl-Recesslonary
52. Auditorium Event Promotion
~3. Relmbursement Expenditure
54. Mausoleum Endowment
55. Transportatlon Fare Redemptlon
56. Transportatlon AB 2136
57. Transportatlon 58 325
58. Transportation - U~1TA
59. General Servlce
* Established by Charter to collect property tax
ATTACHMENT I
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Attachment II
To:
Mayor and City Council
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March 20, 1979
Sectlon 606. TAX LIMITS
(b) Speclal levies, ln addition to the above, may be made annually,
based on approved budget requirements, for the followlng specific
purposes: parks, recreatlon and mUS1C, Clty plannlng, librarles,
schools, advertising, and emergency care and relief of needy
persons. The proceeds of any such speclal levy shall be used
for no other purpose than that speclfied.