HomeMy WebLinkAboutR-11203 appropriate $3,425,000 in FY 2018-19 General Fund Unassigned Fund Balance for investment in economic development efforts and homeless servicesR 11203
RESOLUTION NO. 11203 (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TO APPROPRIATE $3,425,000 IN FY 2018-19
GENERAL FUND UNASSIGNED FUND BALANCE FOR IMMEDIATE
INVESTMENT IN ECONOMIC DEVELOPMENT EFFORTS AND
HOMELESS SERVICES AND TO REPLENISH THE APPROPRIATION
WITH UNBUDGETED LOCAL REVENUE MEASURE FUNDS
RESULTING FROM THE PASSAGE OF MEASURE G-20 FOR FISCAL
YEAR 2020-21
WHEREAS, on March 17, 2020, the City Council adopted Resolution No. 11117,
authorizing the City Manager to utilize fiscal year 2018-19 undesignated General Fund balance
for one-time budget allocations related to the COVID-19 health emergency; and
WHEREAS, since that time, the community and business impacts of the COVID-19
pandemic have continued and with the County of San Luis Obispo’s recent transition from Tier 2
(Substantial) to Tier 1 (Widespread), there is an immediate need to invest in additional economic
development efforts to support businesses and for homeless services to support the community’s
most vulnerable; and
WHEREAS, the City’s top priority for fiscal year 2020-21 is San Luis Obispo’s economic
stability, recovery and resiliency. This priority, adopted by the City Council as part of the 2020 -
21 Supplemental Budget, provides the structure and focus for the City of San Luis Obispo to
continue to respond to, and recover from, COVID-19’s public health, economic, and social impacts
to the City of San Luis Obispo’s residents, businesses, and community par tners; and
WHEREAS, on November 3, 2020, the San Luis Obispo voters approved a local
transaction and use tax measure that will begin collecting applicable tax on April 1, 2021 through
the California Department of Tax and Fee Administration; and
WHEREAS, the fourth quarter tax revenue is anticipated to produce $3.8 million in
transaction and use tax revenue to the City’s General Fund; and
WHEREAS, the City needs to invest in economic development to assist the business
community with the ongoing effects from the COVID-19 pandemic; and
WHEREAS, the City Manager requested the use of $3,425,000 in undesignated fiscal year
2018-19 General Fund balance at the City Council meeting on December 8, 2020 for economic
development and homeless services.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Resolution No. 11203 (2020 Series) Page 2
R 11203
SECTION 1. With the approval of $3,425,000 for immediate economic development
efforts and homeless services, the City Council directs staff to utilize the revenue fr om the first
quarter collection of the local transaction and use tax to replenish the undesignated General Fund
balance.
SECTION 2. The undesignated fiscal year 2018-19 General Fund balance will be used
for one-time additional payments to the City’s pension system CalPERS to pay down the unfunded
pension liability. The amount shall be no less than $4.2 million and up to $7.2 million based on
available undesignated fund balance at the time of the 2019-20 audit and City’s Comprehensive
Annual Financial Report.
Upon motion of Council Member Christianson, seconded by Vice Mayor Stewart, and on
the following roll call vote:
AYES: Council Member Christianson, Marx, Pease, Vice Mayor Stewart, and
Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 8th day of December 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ____________________________.
____________________________________
Teresa Purrington,
City Clerk