PREPARED BY: J. KELLY SESSIONS DATE OF MEETING: 08/06/18
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING FY 2017/18 GENERAL FUND DESIGNATED RESERVES AMENDMENT #4 AT $5,800,483 PER ADOPTED FISCAL RESILIENCY RESERVE POLICY
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt resolution.
BODY
COMPLIANCE STATEMENTS
FY 2018-2021 Council Priority Workplan Compliance Statement
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.
Upon completion of the FY 2017 audit, City Council established the GFDR at $9,525,937 on January 16, 2018 (Resolution 2018-003). This GFDR comprised a year-to-date fund balance of $6,525,937 as of December 31, 2016, plus an additional $3,000,000 available as a result of the FY 2017 Audit. The GFDR has been amended multiple times since then, most recently on May 21, 2018 by Resolution 2018-067 when the amount was set at $6,508,483. A total of $708,000 has been appropriate...
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