PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 01/21/2025
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION APPROVING AMENDMENT NO. 2 TO THE GENERAL FUND DESIGNATED RESERVES (GFDR) FUND BALANCE FOR A TOTAL FUND BALANCE OF $6,671,279 THROUGH FISCAL YEAR 2024-25 TO ALLOCATE FOR ALL FUTURE CITY COUNCIL APPROVED APPROPRIATIONS THROUGH JUNE 30, 2025, EFFECTIVE JANUARY 21, 2025
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Council Priority Workplan Compliance Statement:
Continue Fiscal Resilience, Fiscal Excellence and Fiscal Transparency is an adopted City Council Priority contained in the adopted Fiscal Year 2023-2025 City Council Priority Workplan, effective May 1, 2023.
BACKGROUND
On January 16, 2024, Amendment No. 4. was approved to fund the City’s FY 2023-24 General Fund Designated Reserves (GFDR) Fund Balance, which reflected all City Council approved allocations totaling $7,606,461 through December 31, 2023, previously adopted via Resolution 2023-165 on December 13, 2023.
Initially, the FY 2023-24 GFDR Fund Balance of $7,606,461 included projected proceeds from the sale of land, located on Vale Road from the Lytton Rancheria of California to the City of San Pablo in the amount of $3,050,000. However, on December 28, 2023, the actual sale proceeds received by the City following close of escrow was $3,045,137 resulting in a difference of $4,863, and leaving an adjusted remaining unappropriated GFDR balance of $5,393,923 (i.e., $5,398,786 less $4,863). Thereafter, the City Council approved Amendment No. 5 to the FY 2023-24 GFDR Fund Balance, accounting for all City Council-approved appropriations and the correct proceeds for the sale of land (via Resolution 2024-003 adopted on January 16, 2024), totaling the FY 2023-24 GFDR at $7,601,598.
Per FY 2024-25 Amendment No. 1. approved September 3, 2024, the following amounts totaling $2,430,319 were appropriated and expensed via City Council action (via adopted resolutions) during the FY 2023-24 period through June 30, 2024, resulting in a remaining unappropriated GFDR balance of $5,171,279 from the previously allocated expense items, as follows:
|
FY 2023-24 Total Appropriations from GFDR Fund Balance thru 06/30/24 |
|
Reso No. |
Reso Date |
Project Description |
Appropriation |
|
Reso 2023-165 |
12/13/23 |
Sec 115 Trust with PARS |
$1,000,000 |
|
Reso 2023-129 |
08/07/23 |
2600 Moraga Demo Contract Award |
$1,199,035 |
|
Reso 2023-140 |
09/18/23 |
PD Elevator Repair |
$8,640 |
|
Reso 2024-005 |
01/16/24 |
Legal Contract Services - Civica Law Firm |
$20,000 |
|
Reso 2024-004 |
01/16/24 |
Legal Contract Services - Telecom Law Firm |
$30,000 |
|
Reso 2024-011 |
02/05/24 |
Economic Development Master Plan |
$60,000 |
|
*Reso 2024-056 |
05/06/24 |
CORE Homeless Outreach Services |
$112, 644 |
|
|
|
Total FY 2023-24 GFDR Appropriations: |
$2,430,319 |
NOTE: *During the FY 2023-24 Annual Finance Comprehensive Report (AFCR) review in November 2024, the Finance Department staff identified that Resolution 2024-056 approved May 6, 2024, was not expensed, leaving a $112,644 carryover from FY 2023-24 to FY 2024-25. This FY 2023-24 carryover allocation was recorded and processed by the Finance Department for FY 2024-25 in late November 2024.
FY 2023-24 GFDR Fund Balance Allocations & One-Time Budget Balancing Measures
The remaining FY 2023-24 unappropriated GFDR Fund Balance of $171,279, which includes the Resolution 2024-056 $112,644 fund balance, along with the following one-time budget balancing measures of $5,000,000 were allocated, and included in the FY 2025-26 Two-Year GF Operating Budget Adoption on May 20, 2024 via Resolution 2024-064, which includes the following new GDFR allocations and adjusted balance, as follows:
1. GFDR allocation in the amount of $1,961,291 for FY 2024-25 One-time Budget Balancing Measure
2. GFDR allocation in the amount of $3,038,709 for FY 2025-26 One-time Budget Balancing Measure
__________________________________________________________________
Total GFDR Allocation for One-Time Budget Balancing for FY 24-25 & 25-26: $5,000,000
Undesignated Fund Balance (Reserves) to FY 2024-25 GFDR
On September 16, 2024, Resolution 24-123 was approved to fund a one-time appropriation of $1,500,000 from undesignated fund balance (reserves) to FY 2024-25 General Fund Designated Reserve (GFDR) fund balance for potential payment of additional costs associated with the Rumrill Boulevard complete streets projection (Project No. 700).
FY 2024-25 GFDR Fund Balance (Amendment #2)
Following the approved FY 2024-25 GFDR Amendment No. 1 and Resolution No. 2024-123, the City Manager requests the revised FY 2024-25 GFDR Amendment No. 2 fund balance of $6,671,279 be utilized in FY 2024-25 as detailed in the table below:
|
CITY OF SAN PABLO |
|
GENERAL FUND DESIGNATED RESERVE (GFDR) FUND BALANCE |
|
PROPOSED FY 2024-25 (AMENDMENT 2) |
|
January 21, 2025 |
|
|
|
|
DESCRIPTION |
FY2024-25 Proposed Amendment # 2 |
|
FY 23-24 GFDR Carryover Fund Balance (See Details Below) |
$ 5,171,279 |
|
FY 2024-25 One-time Budget Balancing Measure (Reso No. #2024-064) |
$ 1,961,291 |
|
FY 2025-26 One-time Budget Balancing Measure (Reso No. #2024-064) |
$ 3,038,709 |
|
Total GFDR Fund Balance FY 24/25 & FY 2025/26 |
$ 5,000,000 |
|
GFDR Net Fund Balance |
$ 171,279 |
|
|
|
|
GFDR FUNDING USES |
|
|
Funding Sources: |
|
|
FY 2024-25 One-time Budget Balancing Measure (Reso No. #2024-064) |
$ 1,961,291 |
|
FY 2025-26 One-time Budget Balancing Measure (Reso No. #2024-064) |
$ 3,038,709 |
|
FY2023-24 GFDR Net Fund Balance Carry Over |
$ 171,279 |
|
FY 2023-24 Undesignated Reserves: Reso 2024-123 |
$ 1,500,000 |
|
GFDR Fund Balance Subtotal: |
$ 6,671,279 |
|
|
|
|
Major Operating Expenses: |
|
|
Reso 2024-56 CORE Homeless Outreach Services |
$ 112,644 |
|
Reso 2024-123 GFDR - Ghilotti settlement agreement |
$ 1,500,000 |
|
Operating Expenses Subtotal: |
$ 1,612,644 |
|
GFDR FY 2024/25 NET FUND BALANCE |
$ 5,058,635 |
Budget, Fiscal & Legislative Standing Committee (BFLSC) Review
On January 15, 2025, the BFLSC Standing Committee (Pabon-Alvarado; Ponce) reviewed the FY 2024-25 GFDR Fund Balance Update (Amendment No. 2) and recommended its formal consideration and approval to the City Council.
FISCAL IMPACT
This action authorizes and approves Amendment No. 2 of the FY 2024-25 GFDR Fund Balance through June 30, 2025, effective January 21, 2025. Any future appropriation of GFDR Funds requires approval by majority vote of the City Council via adopted resolution.
Attachment:
Att A - Resolution