Introduction of a Balanced Budget Ordinance. City of Culver City California City Council Agenda Item Report Meeting Date: 03/09/09 AGENDA ITEM: Introduction of a Balanced Budget Ordinance Item Number: PH 3 Contact Person/Dept.: Jeff Muir Chief Financial Officer Fiscal Impact: Yes X No Phone Number: 310 253 5865 General Fund: Yes X No Public Hearing: X Public Notification: Master E Mail Notification List (03/04/09) Action Item: Attachments: X Department Approval: Jeff Muir (03/03/09) Chief Financial Officer Approval: Jeff Muir (03/03/09) City Attorney Approval: Carol Schwab (by H. Baker) (03/03/09) City Manager Approval: Jerry B. Fulwood (03/05/09) RECOMMENDATION: It is recommended the City Council discuss and consider introduction of a Balanced Budget Ordinance. BACKGROUND/DISCUSSION: On December 1 2008 the City Council directed staff to bring back a proposed ordinance that would require the City to adopt a balanced budget. Staff has completed drafting this proposed Ordinance and it has been reviewed by the Budget & Finance Subcommittee. The general provisions of the attached proposed Ordinance are as follows: Section 3.07.400 would be added to the Culver City Municipal Code requiring that General Fund ongoing expenditures shall not exceed budgeted ongoing revenues for each budget year. Section 3.07.405 specifies that for each budget year the City s projected ending reserves shall not be less than thirty (30%) percent of budgeted operating expenditures. Section 3.07.410 provides the ability to use reserves for financial emergencies. If a financial emergency is declared by a four fifths vote of the City Council the City s reserves may be used to help balance the budget for a single year but the projected reserves may not twenty five (25%) percent. Additionally the City must implement measures to restore the projected ending reserves to thirty (30%) percent by the end of the immediately following budget year or with a four fifths vote of City Council a longer payback ...
Click here for full text