HomeMy WebLinkAboutResolution - 2001-R0338 - Community Investment Fund Policy - 08/30/2001Resolution No. 2001-RO338
August 30, 2001
Item No. 68
RESOLUTION
WHEREAS, the City of Lubbock has an important responsibility to its citizens to
carefully account for public funds, prudently manage municipal finances, and plan for the
adequate funding of services desired by the public; and
WHEREAS, the purpose of the financial policies is to enable the City to achieve a
long-term stable and positive financial condition by exercising integrity, prudence,
responsible stewardship, planning accountability, and full and continuous disclosure;
NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the attached Community Investment Fund policy has been revised and will
be incorporated into the City of Lubbock, Texas financial policies and that it shall be
adopted as the official Community Investment Fund policy for the City of Lubbock.
Passed by the City Council on first reading this 30th day of August , 2001. �.
WINDY SI N, MAYOR
ATTEST:
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Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
il k 0 02 d
ebra Forte'
Deputy City Manager
AS TO FORM:
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First Assistant City Attorney
Dd/Res/community investment fund resolution.doc
August 21, 2001
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Resolution No. 2001-80338
August 30, 2001
Item No. 68
COMMUNITY INVESTMENT FUND
FINANCIAL POLICY
I. FY 1998-99, Community Investment Fund, Phase I and Creation
Pursuant to the Mayor's Task Force requesting the city provide additional funding for
economic development out of our current operations, without raising taxes, Phase I was
implemented by city staff in the current budget and adopted by City Council in August,
1998.
In the first year, an amount equal to approximately $2.1 million toward the requested
total funding of $10 million over time was presented by staff and approved in the
FY 1998-99 operating budget. The monies were derived from 1% of gross receipts as
budgeted for that fiscal year per fund. It is expected to be an ongoing item in these funds.
The funds contributing in addition to the general fund are the enterprise funds, which are
positively enhanced by growth and economic development activity. Those funds include
electric, water, sewer and solid waste.
That amount is expected to be sustained at the same allocation formula for ongoing
funding annually, unless it is required for operations.
II. FY 1999-00, Enhanced Community Investment Fund, Phase II
In FY 1999-00 an additional contribution was added - I% of gross revenue or
approximately $1 million that could also be sustained in future years. The source is the
Solid Waste Enterprise Fund. By reviewing historical commitments of the Electric
Enterprise to Economic Development and to the General Operating Fund, approximately
$4.5 million annually is committed as follows:
General fund infrastructure = $1.2 million
Economic Development = $100,000
Street lighting capital projects = $500,000
Street lighting budget = $1.9 million
ED program II = $330,000
ED program III = $190,000
Contribution to TS = $110,000
Business Development Office = $190,000
Of a $72 million budget, $4.5 million represents approximately 6.2%. The Solid Waste
budget is $17.2 million, 6% represents approximately $1,032,000.
IIl. FY 2001-02, Revision to General Fund Contribution
This year there is a change in the Community Investment Policy. The policy will change
the contribution from the General Fund to one penny on the property tax instead of I% of
the total General Fund gross receipts. This policy change is included in the proposed
budget for FY 2001-02. The Community Investment Fund will continue to receive 1% of
gross revenues from those Enterprise Funds that benefit from community growth,
Electric, Water, Sewer and Solid Waste.
SUMMARY. In conclusion, these funds are budgeted by gross receipts and will be
transferred to the Community Investment Fund at the end of each fiscal year. They
replace each fund's previously budgeted contingency reserve. If funds are not needed for
extraordinary events, the transfers occur on 9-30 of each year.
The underlying philosophy is that monies will be transferred to the Community
Investment Fund from each contributing City of Lubbock fund. Market Lubbock will
then present, for City Council approval, funding requests for specific projects. Requests
for Community Investment funded projects may include, but are not limited to, items
such as incentives and capital improvements. Funds requested from the Community
Investment Fund shall not be used to fund Market Lubbock, Inc. operational
expenses... only for project specific items.
Dd/Res/Community Investment Financial Policy.doc
August 21, 2001