HomeMy Public PortalAbout2020.012 - (01-21-20) RESOLUTION NO. 2020.012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
AUTHORIZING A GENERAL FUND TRANSFER OF $3,200,000 TO
REDUCE/ELIMINATE ACCOUNTING DEFICITS BY $2,148,778 IN THE
SELF INSURANCE FUND, $296,356 IN THE GARAGE FUND, AND
$754,866 IN THE LITTER ABATEMENT FUND
WHEREAS, from year to year, several City funds have run annual deficits. This is
attributed to expenditures exceeding revenues; and
WHEREAS, over the last few years, the Self Insurance, Garage and Litter
Abatement Funds have been running deficits; and
WHEREAS, historically, the Litter Abatement Fund has not been self-sufficient;
and
WHEREAS, the Self Insurance and Garage Fund has been supported by other
funds/departments; and
WHEREAS, however, there has not been enough revenue to support expenses.
When the General Fund has a surplus, we have transferred monies to eliminate and/or
reduce deficits; and
WHEREAS, to improve the financial state of funds currently in deficit, staff is
recommending that the City Council use $3,200,000 from the General Fund balance to
transfer and reduce/eliminate accounting deficits by $2,148,778 in the Self Insurance
Fund, $296,356 in the Garage Fund, and $754,866 in the Litter Abatement Fund; and
WHEREAS, Currently, there is a $3,478,280 deficit in the Self Insurance Fund,
$296,356 deficit in the Garage Fund, and $754,866 deficit in the Litter Abatement Fund
as outlined in the table below:
Projected FY 201'849
AccountingFundEnding Fund Balance
Self Insurance Fund $(3,478,280)
Garage Fund (296,356)
Litter Abatement (754,866)
,Total° $(4,529,502).'
WHEREAS, if City Council elects to approve staff recommendation, and
reduce/eliminate the accounting deficits in the respective funds, the following deficit
remains:
Accounting Fund Remaining Deficit;
Self Insurance Fund $(1,329,502)
Total" , $(1,329,502)
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WHEREAS, reducing the deficits in these funds is the right thing to do. We want
to continue to be conservative and manage the City's fiscal affairs in an appropriate
manner.
NOW, THEREFORE, CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Council authorizes the City Manager or designee to make the
necessary and appropriate transfers and accounting transactions to reduce the deficits in
the Self Insurance, Garage, and Litter Abatement Funds.
Section 2. This resolution shall become effective immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
of the City of Lynwood, California, this 21st day of January 2020.
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_ 1)
Aide Castro, Mayor
ATTEST:
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Maria Quinonez,
ir Jos Ometeotl,
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
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Noel Tapia, J' D• ns,
City Attorney nance Director
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STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
above and foregoing resolution was duly adopted by the City Council of said City at its
regular meeting thereof held in the City Hall of the City on the 21st day of January, 2020
and passed by the following vote:
AYES: COUNCIL MEMBERS SANTANA, SOLACHE, MAYOR PRO TEM
CASANOVA, AND MAYOR CASTRO
NOES: NONE
ABSTAIN: NONE
ABSENT: COUNCIL MEMBER ALATORRE
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aria Quinonez,
City Clerkdif
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council
of said City, do hereby certify that the above and foregoing is a full, true and correct copy
of Resolution No. 2020.012 on file in my office and that said resolution was adopted on
the date and by the vote therein stated. Dated this 21St day of January, 2020.
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aria Quinonez,
City Clerk
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