CITY COUNCIL COMMUNICATION

Date: 04-01-02	SUBJECT: FINAL READING OF ORDINANCE # 2002-O-074 AUTHORIZING THE CITY MANAGER TO EXECUTE A BUDGET AMENDMENT APPROPRIATING OPERATIONS FUNDS FROM THE FEDERAL TRANSIT ADMINISTRATION GRANT NO. TX 90 X456, FOR FISCAL YEAR 1998-1999 IN THE AMOUNT OF $234,180.00 TO BE USED FOR OPERATING EXPENSES IN FISCAL YEAR 2001-02 INCREASING THE FEDERAL CONTRIBUTION FROM $3,511,128.00 TO $3,745,308.00 AND DECREASING THE SALES TAX MATCH FOR OPERATING EXPENSES FROM $2,722,520.00 TO $2,488,340.00 AND TRANSFERRING $234,180.00 INTO SALES TAX RESERVE APPROPRIATION.
INITIATED BY: Larry Dovalina, City Manager		STAFF SOURCE: Jose A. Guerra, Interim General Manager
PREVIOUS BOARD ACTION: On March 11, 2002, item was introduced to increase the Federal Transit Administration operating grant contribution from $3,500,000.00 to $3,511, 128.00
BACKGROUND: The remaining operating funds of this grant TX 90 X456 were at one point to be re-programmed to capital outlay expenditures. Current management recommends utilizing and expensing these funds in the current fiscal year. The Federal Transit Administration has confirmed that older funds should be used prior to the use of newer operating expenses.
FINANCIAL: Budget Proposed Budget Amendment Budget Transit System Revenues: Operating Grant 3,511,128.00 234,180.00 3,745,308.00 Transfer in/Sales Tax 2,722,520.00 (234,180.00) 2,488,340.00 Expenditures Transfer in/Sales Tax 2,722,520.00 (234,180.00) 2,488,340.00 Reserve Appropriation 11,128.00 234,180.00 245,308.00
LMI BOARD OF DIRECTORS: Item approved at the LMI Board of Director’s meeting on March 14, 2002.		STAFF RECOMMENDATION: Staff recommends adoption of this ordinance.

ORDINANCE NO. 2002-O-074

AUTHORIZING THE CITY MANAGER TO EXECUTE A BUDGET AMENDMENT APPROPRIATING OPERATIONS FUNDS FROM THE FEDERAL TRANSIT ADMINISTRATION GRANT NO. TX 90 X456, FOR FISCAL YEAR 1998-1999 IN THE AMOUNT OF $234,180.00 TO BE USED FOR OPERATING EXPENSES IN FISCAL YEAR 2001-02 INCREASING THE FEDERAL CONTRIBUTION FROM $3,511,128.00 TO $3,745,308.00 AND DECREASING THE SALES TAX MATCH FOR OPERATING EXPENSES FROM $2,722,520.00 TO $2,488,340.00 AND TRANSFERRING $234,180.00 INTO SALES TAX RESERVE APPROPRIATION.

WHEREAS, the FTA grant was accepted and executed on September 13, 1999; and

WHEREAS, The City Council finds it to be in the best interests of the City of Laredo, Texas, to execute budget amendment in the amount of $234,180.00 and that funds be allocated to sales tax reserve appropriation.

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

Section 1. The City Manager is authorized to execute a budget amendment appropriating operations funds from the Federal Transit Administration Grant No. TX 90X456, in the amount of $234,180.00; and

Section 2. The City’s Federal Transit Administration Grant contribution is increased from $3,511,128.00 to $3,745,308; and

Section 3. The City’s sales tax match for transit operating expenses is reduced from $2,722,520.00 to $2,488,340.00; and

Section 4. The reduced amount of match of $234,180.00 shall be transferred into sales tax reserve appropriation.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE _________ DAY OF _________, 2002.

______________________________

ELIZABETH G. FLORES

MAYOR

ATTEST:

_______________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

APPROVED AS TO FORM:

BY ____________________________

JAIME L. FLORES

CITY ATTORNEY