RESOLUTION NO. 2012-75
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY
ESTABLISHING A CAPITAL ASSET ACQUISITION AND REPLACEMENT FUND IN THE
CAPITAL PROJECTS FUND GROUP AS A COMMITTED FUND BALANCE AND
ESTABLISHING POLICIES CONCERNING SOURCES, USES AND TRANSFER OF FUNDS
CITY OF FOSTER CITY
WHEREAS, the City Council wishes to establish a committed fund balance in accordance with the City's Fund Balance Policy enacted on June 20, 2011 for the purposes of providing a source of revenue to be utilized for the acquisition of real property or the acquisition, construction or replacement of major capital assets; and, WHEREAS, this fund should be called the Capital Asset Acquisition and Replacement Fund and should be accounted for in the City's Capital Projects Fund Group; and,
WHEREAS, the source of revenues to be deposited into this fund should be derived from the sale of real property; and,
WHEREAS, the uses of funds should be used only for the acquisition of real property or for the acquisition, construction or replacement of capital assets and subject to a supermajority vote of the City Council; and,
WHEREAS, the uses of funds are not intended to be used for maintenance or preservation of existing assets; and,
WHEREAS, the City Council wishes to transfer monies from the proceeds of the North Peninsula Jewish Campus site in the sum of Two Hundred Five Thousand Dollars ($205,000) per year for three successive years only in Fiscal Years 2012-2013, 2013-2014, and 2014-2015; and,
WHEREAS, the City Council wishes to require a supermajority vote in order to enact, amend or rescind any or all parts of this resolution; and, WHEREAS, this resolution shall only go into effect subject to a 415 th vote of the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that the Capital Asset Acquisition and Replacement Fund is hereby created subject to the following provisions:
• Adoption — the Capital Asset Acquisition and Replacement Fund is established in the City's Capital Projects Fund Group to serve as a Committed City Resolution No. 2012-75
Fund Balance account in accordance with the City's Fund Balance Policy enacted on June 20, 2011.
• Purpose - the purpose of this fund is to provide a source of revenue to be utilized for the acquisition of real property or the acquisition, construction or replacement of major capital assets.
• Source of Funds — monies deposited into the fund shall be derived from any of the following three sources: 'I) proceeds realized as a result of the sale of real property; 2) principal and interest payments on loans associated with the sale of real property; or, 3) investment earnings on pooled cash and/or investments in the fund.
• Use of Funds — subject to a 4/5 th affirmative vote of the City Council, funds may be allocated for the following two purposes: 1) acquisition of real property; and/or, 2) major capital asset acquisition, construction and/or replacement.
• Transfer of Funds — an annual transfer shall be made from the proceeds generated from the sale of the North Peninsula Jewish Campus (NPJC) site from the Capital Asset Acquisition and Replacement Fund to the City General Fund in the amount of $205,000 for three (3) successive fiscal years only in FY 2012-2013, FY 2013-2014, and FY 2014-2015.
• Enactment, Amendment or Rescission — the enacting resolution, and any future amendments or rescission to this resolution, shall require a 4/5th vote of the City Council.
PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Special Meeting held on the 24th day of September, 2012, by the following vote:
AYES: Councilmembers Bronitsky, Frisella, Okamoto, Perez and Mayor Kiesel NOES: None
ABSENT: None
ABSTAIN: None
ART KIESEL, MAYOR
ATTEST:
DORIS L. PALMER, CITY CLERK