HomeMy WebLinkAbout08 CAPITAL PROJECTS FUND BUDGET APPROPRIATION-TUSTIN LEGACY EXPENDITURES,t • Agenda Item 8
AGENDA REPORT Reviewed:
City Manager
Finance Director
MEETING DATE: OCTOBER 16, 2012
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: PAMELA ARENDS -KING, FINANCE DIRECTOR
SUBJECT: CAPITAL PROJECTS FUND BUDGET APPROPRIATION FOR
VARIOUS REQUIRED TUSTIN LEGACY EXPENDITURES.
SUMMARY:
There are several required environmental remediation expenditures, including the purchase
of environmental insurance, costing approximately $700,000, necessary to continue with the
sale and development of the Tustin Legacy project located within the former MCAS Tustin
Redevelopment project area. Due to the dissolution of the Redevelopment Agency, staff is
recommending that the resources to fund the environmental remediation expenditures of
approximately $700,000 will be from the Capital Projects Fund undesignated fund balance.
RECOMMENDATION:
It is recommended that the City Council approve:
A budget appropriation in the amount of $700,000 out of the Capital Projects Fund
undesignated fund balance to be expensed out of the Tustin Legacy Expenditure
Account (200 -40 -00 -7500) to fund costs due to environmental remediation.
FISCAL IMPACT:
The Capital Projects Fund currently has $8,969,707 in fund balance. Of that amount
$3,284,954 were contributions from the General Fund and undesignated. After the budget
appropriation of $700,000 the undesignated amount will be $2,584,954.
BACKGROUND:
To proceed with the sale and development of the Tustin Legacy Project located within the
former MCAS Tustin Redevelopment Project Area, environmental insurance should be
purchased, and any required deductibles budgeted under the new policy and existing policy's
extended reporting period to mitigate any environmental issues /claims that are current or may
occur in the future including any other environmental remediation expenditures. The
approximate cost of these expenditures is approximately $700,000.
p
�je, g�
Pamela Arends -King
Finance Director