REPORT TO THE CITY COUNCIL
FROM: HENRY FIERRO, Budget Director
Budget and Management Studies Department
BY: JUAN RIOS, Principal Budget Analyst
Budget and Management Studies Department
SUBJECT
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***BILL – (For introduction and adoption) - Adoption of Property Tax Override Ordinance (Subject to Mayor’s veto)
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RECOMMENDATION
It is recommended that the Council of the City of Fresno adopt the attached Property Tax Override (PTO) Ordinance which will take effect upon adoption as provided in Charter Section 600(b) and 610(b).
EXECUTIVE SUMMARY
The Proposed FY 2024 Budget assumes a portion of the City’s retirement contributions for employees will be funded through a PTO. Adoption of the attached Ordinance allows General Fund resources, which otherwise will have to be applied to funding these retirement costs, to thereby be freed up to fund other General Fund activities. Failure to adopt the attached Ordinance without adding replacement revenues will result in the General Fund being out of balance.
BACKGROUND
The City Council and the Mayor must adopt a budget for FY 2024 by June 30, 2023. That budget assumes a portion of the City’s retirement contributions for employees will be funded through a PTO of $0.032438 per $100 of gross assessed valuation. General Fund resources, which otherwise will have to be applied to these retirement costs, will thereby be freed up to fund other General Fund activities. This is a routine Budget action adopted by Council annually.
ENVIRONMENTAL FINDINGS
N/A
LOCAL PREFERENCE
N/A
FISCAL IMPACT
Failure by the City Council to adopt the attached Ordinance without adding replacement revenues will result in the General Fund being out of balance.
Attachment:
PTO Ordinance