REPORT TO THE CITY COUNCIL June 27, 2019 FROM: HENRY FIERRO, Budget Manager Budget and Management Studies BY: TODD STERMER, Senior Budget Analyst Budget and Management Studies SUBJECT ..Title ***BILL - (For introduction and adoption) - Adoption of Property Tax Override Ordinance (Subject to Mayor's veto) ..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 2020 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 2020 by June 30, 2019. 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: FY 2020 PTO Ordinance