PREPARED BY: J. KELLY SESSIONS DATE OF MEETING: 06/20/16
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AMENDING THE FISCAL RESILIENCY RESERVE POLICY TO ESTABLISH THE CASINO REVENUE SUSTAINABILITY RESERVE
Label
RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COUNCIL PRIORITY WORKPLAN
Budget Spending Controls (All) and General Fund Reserves Protection/Fund Balance (City Council, City Manager) are adopted policy items under the FY 2015-17 City Council Priority Workplan, effective July 1, 2015.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
On October 21, 2013, 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 (Resolution 2013-159). This Fiscal Resiliency Reserve Policy adopted by City Council Resolution established several new reserves and funded each at the recommended levels as part of the City's ongoing budget planning and development, as follows:
* Catastrophic Reserve 50% of total Operating Funds
* Budget Stabilization Reserve 5% of total Operating Funds
* General Fund Designated Reserves* Allocated on an annual basis
* Future Capital Projects Reserve* Allocated on an annual basis
* City Manager's Contingency Account** 1% of total Operating Funds
* One-time funds for allocation by the City Council for specific operational programs and projects
**One-time funds for allocation by the City Manager for specific operational programs and projects
New Casino Revenue Sustainability Reserve
The City's General Fund is heavily dependent on revenues from Casino San Pablo representing nearly 60% of the City's total General Fund Operating Revenues, and would be impacted significantly if the Casino closed, either temporarily or permanently. In order to take a long-term, cautious but proactive approach, staff proposes to update the Fiscal Resiliency Reser...
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