SUBJECT: FINAL READING OF ORDINANCE 2002-O-031

Amending the City Of Laredo fiscal year 2002 General Fund Budget and Contractual Obligations Fund by transferring $ 2,202,940 from the General Fund Balance and appropriating it in the Contractual Obligation Fund. The amendment will draw down $2,202,940 from the General Fund opening balance and appropriate a transfer out of $2,202,940 to the Contractual Obligations Fund. Amending the Contractual Obligations Fund to appropriate $ 2,202,940 for the Personal Property Finance Contractual Obligation for the purpose of acquisition of machinery and equipment, automotive equipment and building improvements.

INITIATED BY:

Larry Dovalina, City Manager

Cynthia Collazo, Assistant City Manager

STAFF SOURCE:

Rosario C. Cabello, Finance Director

PREVIOUS COUNCIL ACTION:

A reimbursement resolution 2002-R-010 was adopted on January 28, 2002.

A public hearing and an introduction of this ordinance was held on January 28, 2002

BACKGROUND:

A proposed Public Property Finance Contractual Obligation will be issued during the Spring 2002 for the acquisition of machinery and equipment, automotive equipment and building improvements. In order to expedite the acquisition of such equipment a temporary draw down of General Fund balance is proposed. General Fund will be reimbursed once the proceeds from the sale of Certificate of Obligations are received. See attached list for list of items to be acquired.

FINANCIAL:

Annual Budget Proposed Amendment Amended Budget

FY 2002 FY 2002

General Fund:

Estimated Opening Balance $ 11,460,462 $ 2,202,940 $ 9,257,522

Transfer Outs:

Contractual Obligations Fund 2,202,940 2,202,940

Contractual Obligations Fund:

Revenues:

Transfer In – General Fund -0- 2,202,940 2,202,940

Expenditures:

Machinery & Equipment -0- 460,940 460,940

Automotive Equipment -0- 1,627,000 1,627,000 Building Improvements -0- 115,000 115,000

RECOMMENDATION:

Approve final reading of Ordinance 2002-O-031.

ORDINANCE 2002-0-031

AMENDING THE CITY OF LAREDO FISCAL YEAR 2002 GENERAL FUND BUDGET AND CONTRACTUAL OBLIGATIONS FUND BY TRANSFERRING $2,202,940 FROM THE GENERAL FUND BALANCE AND APPROPRIATING IT IN THE CONTRACTUAL OBLIGATION FUND. THE AMENDMENT WILL DRAW DOWN $2,202,940 FROM THE GENERAL FUND OPENING BALANCE AND APPROPRIATE A TRANSFER OUT OF $2,202,940 TO THE CONTRACTUAL OBLIGATIONS FUND. AMENDING THE CONTRACTUAL OBLIGATIONS FUND TO APPROPRIATE $2,202,940 FOR THE PERSONAL PROPERTY FINANCE CONTRACTUAL OBLIGATION FOR THE PURPOSE OF ACQUISITION OF MACHINERY AND EQUIPMENT, AUTOMOTIVE EQUIPMENT AND BUILDING IMPROVEMENTS

WHEREAS, on September 17, 2001, City Council adopted the fiscal year 2002 annual budget: and

WHEREAS, on January 28, 2002, City Council held a public hearing and introduced this ordinance; and

WHEREAS, in order to expedite the acquisition of vehicles, machinery and equipment and building improvements, the proposed budget amendment is hereby proposed.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

Section 1: General Fund is hereby amended as follows:

Annual Amended

Budget Proposed Budget

FY 2002 Amendment FY 2002

Estimated Fund Balance $ 11,460,462 $ 2,202,940 $ 9,257,522 Expenditures:

Transfer Out –

Contractual Obligation -0- 2,202,940 2,202,940

Section 2: Contractual Obligation Fund is hereby amended as follows:

Revenues:

Transfer In General Fund -0- 2,202,940 2,202,940

Expenditures:

Machinery & Equipment -0- 460,940 460,940

Automotive Equipment -0- 1,627,000 1,627,000

Building Improvements -0- 115,000 115,000

Section 4: The draw down of General Fund will be reimbursed once the proceeds from a sale of Certificate of Obligations are received.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS

THE _______________ DAY OF ________________________, 2002.

_____________________

ELIZABETH G. FLORES,

MAYOR

ATTEST: APPROVED AS TO FORM:

_________________________

GUSTAVO GUEVARA, JR., JAIME L. FLORES

CITY SECRETARY CITY ATTORNEY