Fiscal Year 2013-2015 Special Budget Meeting

2A • FILED OFFlCE OF THE C(7 t C( £R» • OAKLAND • CITY OF OAKLAND ' 2fl«JUN2l AH 8:57 MEMORANDUM TO: HONORABLE MAYOR & FROM: Osbom K. Solitei CITY COUNCIL Controller SUBJECT: Kid's First 3% True-Up Calculation DATE: June 18, 2013 and Adjustment of Proposed Budget for Kids First FY 2013-14 and FY 2014-15 City Administrator Date Approval /s/ Deanna J. Santana 6/18/13 INFORMATION This information memorandum provides a clarification on the Kid's First 3 % Calculation True- Up for FY 2009-10,.2010-H and 2011-12 and adjustment for Kid's First allocation as noted in Errata Number. 4 issued last week. The FY 2013-15 amendments are based on additional revenues projected.ibr the next two fiscal years based upon updated General Purpose Fund revenue trends as reported in the FY 2012-13 Third Quarter Revenue and Expenditure Report and reported during the May 23, 2013 Special Budget Meeting for the FY 2013-15 Proposed Policy Budget. Article Xm, Section:1300 of the Oakland City Charter mandates, effective July 1, 2009 and continuing throiigh June 30, 2021, that the City set-aside three percent (3.0%) of the City's annual actual unrestricted General Purpose Fund (Fund 1010) revenues for the KIDS First! [The Oakland Fund for Children ^ d Youth (the "Kids First! Fund" or "Kids First!")]. The actual funds deposited in the Fund pursuant to this Act shall only come from actual unrestricted General Purpose Fund (Fund 1010) revenues of the City of Oakland. In accordance with the Charter requirement, the annual amount of actual unrestricted General Purpose Fund (Fund 1010) revenues shall be estimated by the City Administrator and verified by the City Auditor. Errors or adjustments in calculation for a fiscal year shall be corrected by an adjustment in the set aside depending upon whether the actual, unrestricted General Purpose Fund (Fund 1010) revenues are greater or less than the estimate. The City perforrhs an estimated annual calculation of the Kids First! Set-aside based on the budgeted unrestricted General Purpose Fund (GPF) revenues, and then performs a true-up calculation based on audited actual unrestricted GPF revenues. The calculation of the set-aside is to be made on the "unrestricted General Purpose Fund revenue. " The City's determination of what constitutes unrestricted General Purpose Fund revenue is based primarily on United States