COUNCIL COMMUNICATION

DATE:

01/13/03

SUBJECT: FINAL READING OF ORDINANCE 2003-O-010

AUTHORIZING THE CITY MANAGER TO EXECUTE A BUDGET AMENDMENT APPROPRIATING OPERATIONS FUNDS FROM THE URBAN TRANSPORTATION GRANT, SECTION 5307 FOR FISCAL YEAR 2002-2003 IN THE AMOUNT OF $41,781.00 INCREASING THE STATE OPERATING GRANT FROM $500,000.00 TO $541,781.00 AND DECREASING THE SALES TAX MATCH FROM $3,825,955.00 TO $3,784,174.00 AND TRANSFERRING $41,781.00 TO SALES TAX RESERVE APPROPRIATION.

INITIATED BY:

Larry Dovalina, City Manager

STAFF SOURCE:

Jose A. Guerra, Interim General Manager

PREVIOUS COUNCIL ACTION:

None

BACKGROUND:

Amendment #1 on the FY 2003 Section 5307 Urban Transportation Grant. This amendment will incorporate into the agreement the FY 2002 rollover amount of $41,781.00. The new maximum amount payable under this grant without modification is now $541,781.00.

FINANCIAL IMPACT:

		BUDGET	PROPOSED
	BUDGET	AMENDMENT	BUDGET
TRANSIT SYSTEM
REVENUES:
STATE OPERATING GRANT	500,000	41,781	541,781
TRANSFER IN/SALES TAX	3,825,955	(41,781)	3,784,174
EXPENDITURES:
TRANSFER OUT/OPERATIONS	3,825,955	(41,781)	3,784,174
RESERVE APPROPRIATION	2,169,700	41,781	2,211,481

LMI BOARD RECOMMENDATION:

Pending LMI Board meeting of December 10, 2002.

STAFF RECOMMENDATION:

Staff recommends the LMI Board of Director’s to approve ordinance for fiscal year 2003.

ORDINANCE 2003-O-010

AUTHORIZING THE CITY MANAGER TO EXECUTE A BUDGET AMENDMENT APPROPRIATING OPERATIONS FUNDS FROM THE URBAN TRANSPORTATION GRANT, SECTION 5307 FOR FISCAL YEAR 2002-2003 IN THE AMOUNT OF $41,781.00 INCREASING THE STATE OPERATING GRANT FROM $500,000.00 TO $541,781.00 AND DECREASING THE SALES TAX MATCH FROM $3,825,955.00 TO $3,784,174.00 AND TRANSFERRING $41,781.00 TO SALES TAX RESERVE APPROPRIATION.

WHEREAS, the Urban Transportation Grant, August 16, 2002, and

WHEREAS, The City Council finds it to be in the best interests of the City of Laredo, Texas, to executed budget amendment in the amount of $41,781.00 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 additional funds from the Texas Department of Transportation, 5307 Program, in the amount of $41,781.00; and

Section 2. The City’s Urban Transportation Grant contribution is increased from $500,000.00 to $541,781.00; and

Section 3. The City’s sales tax match for transit operating expenses is reduced from $3,825,955.00 to $3,784,174.00; and

Section 4. The reduced amount of match of $41,781.00 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

APPROVES AS TO FORM:

BY ___________________

JAIME L. FLORES

CITY ATTORNEY