PREPARED BY: REINA SCHWARTZ DATE OF MEETING: 01/21/20
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO ESTABLISHING PRELIMINARY ALLOCATIONS FOR THE GENERAL FUND DESIGNATED RESERVES AT $4,343,431 FOR FISCAL YEAR 2019/20 (MID-YEAR ADJUSTMENT - PHASE I) PER ADOPTED FISCAL RESILIENCY RESERVE POLICY
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
Approval of this item does not fall within a specific adopted policy priority within the approved FY2019-21 City Council Priority Workplan but is necessary to support the funding needed for projects and programs contained within the Workplan.
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 uncertainties and to set aside funding for other future known, but as of yet, unbudgeted one-time expenses.
On August 5, 2019, City Council approved the FY 2019/20 Designated Reserves at $2,900,024. Since then, City Council has appropriated $1,444,582 from the GFDR, leaving a remaining balance of $1,455,442 as of December 31, 2019.
The FY2018/19 Comprehensive Annual Financial Report (CAFR), identified an increase in audited fund balance of $2,887,989 which is available for assignment within the FY 201...
Click here for full text