Fiscal Year 2013-2015 Special Budget Meeting

To: Honorable Mayor & City Council Subject: Kids First 3% True-Up Calculation and Adjustment of Proposed Budget for Kids First FY 2013-14 and FY 2014-15 Date: June 18,2013 . - Page 4 01 was.$9,059,989". Question posed to the City Attorney's Office: Should the revenue allocated.to the minimum Library appropriation prerequisite at fiscal year 2000-01 level be treated as restricted revenue, and therefore be excluded from the Kids First 3% Set- aside calculation? • GAAP provides that in some specific instances, that increases in current financial resources are to be reported as "other financing sources, " and not revenue. The list below according to GAAP should not be considered revenue, but instead be classified as "other financing sources": o The issuance of long-term debt (face amount and premium) o The inception on capital lease Q! ' Debt service on demand bonds reported as fund liabilities o Sale of capital assets o Insurance recoveries o Transfers Question posed to the City Attorney's Office: Should the above categories be restricted per GAAP definition, and therefore be excluded from the Kids First 3% Set-aside calculation? Rental Income received for business around the "City Administration Building". The City currently has debt on the Administration building "OAKLAND JOINT POWERS FINANCING AUTHORITY, LEASE REVENUE REFUNDING BONDS (OAKLAND ADMINISTRATION BUILDINGS) 2008 SERIES B. Question posed to the City Attomey's Office: Should the City restrict the rental Income received from the leased properties around City Administration Building as defined in the bond document for Debt Service Payment, and therefore be excluded from the Kids First 3% Set-aside calculation? • Notes and Loans Receivables, should the funds received for notes and loan repayment be subject to Kid's First 3% Set-aside? • City Officers - According to the City Charter, some offices are required to be formed, for example. City Council, Mayor, City Administrator, City Attomey, City Auditor, City Clerk and department heads. Should the GPF revenue allocated to the minimum operation of these offices be restricted and removed from the Kids First 3% Set Aside Calculation? The City Attomey has hot provided a final legal opinion on the above items and this could affect the Kids First true-up calculation from FY 2010 through FY 2013 as well as future Kids First 3% allocation amounts.