sr-020580-5aSanta Monica, C-'ifornia, February 5, 1980
T0: Mayor and City Council
FROM: City Staff
SUBJECT: Bailout Funds.
Introduction
This report presents various departmental requests for State
"Bailout" Funds and makes recommendations for the use of those
funds.
Background
After the passage of Proposition 13 in 1978, the State passed
legislation providing surplus funds to local governments in an
attempt to lessen the impact of the voter initiative. Santa
i~onica did not receive its share of the 1978-79 funds until
January of 1980. These funds totaled $698,271.10. AB 8, passed
in October of 1979 provided additional State funding to local
governments. Although we have not been given official notice of
J
the amount Santa Monica will .receive, we are estimating our share
will be approximately $1.1 million; bringing the total of our
estimated "bailout" funds to $1.8 million.
Each department was asked to prepare a list of projects or programs
for which the funds could be used. Cost estimates were made for
the initial year and two subsequent years. A summary, by department,
of the requests is attached as well as copies of each request.
Alternatives
The Council may choose to appropriate bailout funds for establishing
new programs, augmenting existing programs and purchase of new or
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T0: Mayor and City ~ncil February 5, 1980
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replacement capital items immediately. Alternatively, the Council
may consider appropriation.of these funds in the context of the
overall budget deliberations.
Because of much future uncertainty resulting from Proposition 13,
Proposition 4 and the upcoming income tax initiative as well as
substantial pending legislative action, the appropriation of~
"bailout" funds at this time is seen as premature. Staff recommends
Council consider these funds in the context of-the total budget.
This would be accomplished in light of changes in accounting and
funding procedures necessitated by Proposition 4.
Should the Council choose to make appropriations, the following is
a list of recommended projects and capital items staff recommends.
These items were selected using the following criteria:
1. Implementation should result in a short or long term
annual budget reduction.
2. Implementation represents experimental operational
approach which could result in budget savings or
more effective or efficient operations.
3. Funds can either be spent or encumbered by June 30, 1980,
in order to exclude the possibility of unspent funds not
being utilized due to Gann limitations..
T0: Mayor and City until February 5, 1980
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4. Implementation does not result in an ongoing program
which could possibly complicate the City's future
efforts to stay within Gann budget restrictions in
1980-81. Studies have not been concluded as to the
effect of Gann on the City's budget. The City should
not be put into a position where it might have to
reverse present decisions or force hard budgetary
decisions prematurely.
Possibte Allocations
1980- 1981-
Bailout Funds 1981 1982
Finance Computer Upgrade` $45,500 $ -0- $ -0-
Finance Indirect Cost Allocation 17,500 -0- -0-
City Attorney .Word Processing Equipment 10,200. -0- -0-
Fire Two Mini Pumpers, etc.. 145,000 35,000 35,000
Fire Fire Code Violations 16,600 -0- -0-
Parks Replace Lighting- 200,000
Memorial Park -0- -0-
Parks Tennis Stadium 50,000 -0- -0-
Parks Tractor 25,000 -0- -0-
Library Heating, Air conditioning
and Lighting System 200,000 (20,000) {20,000)
Library Fire Code Violations 1,200 -0- -0-
General City Ha11 Fire Code 150,00-0 (50.,000) (50,000)
Services Violations (electrical&
heating system)
General Wilshire Boulevard-Street 100,000 & up -0- -0-
Services Reconstruction
General Solar Hot Water Heating 50,000. -0- -0-
Services System
Police Computer Aided Dispatch 100,000 unkown unknown
Police Facility Renovation 47,800 600 500
Various Fire Code Violations 20,400 -0- -0-
Admin. Fire Code Violations 4,000 -0- -0-
Services
Entertainment Auditorium Expansion 350,000 1,000 1,.000
Facilities
Non-Depart. Housing Augmentation Funds 200,000
Total Excluding Wilshire Blvd. $1;633,200
Remaining $ 166,500
(Recommend Wilshire
Reconstruction)
TO :. Mayor and City'' ~uncil
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Recommended Action
February 5, 1980
It is recommended the Council consider allocation of "bailout"
funds at the time the total budget is considered.
Prepared By: Charles Kent McClain
CITY MANAGER
CKM:dvl
Attachment