REPORT TO THE CITY COUNCIL
June 19, 2015
FROM: JANE SUMPTER, Budget Manager
Budget and Management Studies
BY: SHARON MC DOWELL, Senior Budget Analyst
Budget and Management Studies
SUBJECT
Title
***Adoption of Property Tax Override Ordinance
Body
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 2016 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 2016 by June 30, 2015. That budget assumes that 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.
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:
Property Tax Override (PTO) Ordinance