PREPARED BY: REINA SCHWARTZ DATE OF MEETING: 02/04/19
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO ESTABLISHING ALLOCATIONS FOR THE GENERAL FUND DESIGNATED RESERVES AT $10,338,114 FOR FISCAL YEAR 2018/19 (MID-YEAR) PER ADOPTED FISCAL RESILIENCY RESERVE POLICY
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
Budget Spending Controls and General Fund Reserves Protection / Fund Balance are adopted policy items under the FY 2018-21 Council Priority Workplan, effective November 1, 2017.
CEQA Compliance Statement
This is not a project as defined by CEQA as a budget or financing mechanism pursuant to 14 Cal. Code of Regulations section 15378(b).
BACKGROUND
In order to protect the fiscal solvency of the City and to achieve greater fiscal resiliency, the City Council took the important step of establishing the Fiscal Resiliency Reserve Policy on October 21, 2013 (Resolution 2013-159). This policy established new reserves and determined to fund each by formula (the Catastrophic Reserve, Budget Stabilization Reserve, and City Manager's Contingency Account) or by a set amount within the General Fund Designated Reserve and Future Capital Projects Reserve (collectively the "GFDR" or Designated Reserves). The purpose of the reserves was to protect against natural disasters or manmade economic calamities and to set aside funding for other future known, but as of yet, unbudgeted one-time expenses.
On January 16, 2018, City Council approved the FY 2017/18 Designated Reserves at $9,525,937. Since then, City Council has appropriated $3,725,454 from the GFDR, leaving a remaining balance of $5,800,483 as of December 31, 2018.
The 2018 Comprehensive Annual Financial Report (CAFR), identified an increase in audited fund balance of $2,868,525. Additionally, the City has received reimbursement of $1,856,606 from CalTrans for work completed in the last year. Together, there is now $4,725,131 wh...
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