HomeMy WebLinkAbout4.14 - 2064 Special Designation of General Fund Reserve
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STAFF REPORT
CITY COUNCIL
DATE: June 19, 2018
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Special Designation of General Fund Reserves for Fiscal Year 2017 -18
Prepared by: Colleen Tribby, Director of Administrative Services
EXECUTIVE SUMMARY:
In accordance with the City's Fund Balance and Reserves Policy, the City Council will
consider special designations of General Fund reserves for Fiscal Year 2017 -18.
STAFF RECOMMENDATION:
Adopt the Resolution Authorizing a Special Designation of General Fund Reserves for
Fiscal Year 2017-18.
FINANCIAL IMPACT:
Approval of special designations in the General Fund will not result in any change to
total fund balance but would shift resources among reserve categories.
DESCRIPTION:
Background
Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund
Balance Reporting and Governmental Type Definitions, requires fund balance to be
classified into different categories for governmental funds depending on the extent to
which the use of resources is constrained for specific purposes.
Per GASB 54, the five fund balance classifications are:
• Non-Spendable - amounts that cannot be spent because they are either (a) not in
spendable form, or (b) legally or contractually required to be maintained.
• Restricted - balance with constraints placed of the use of the resources which are
either (a) externally imposed by creditors, contributors, or laws and regulations of
other agencies, or (b) imposed by law through constitutional provisions or enabling
legislation.
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• Committed - amounts that can only be used for specific purposes pursuant to
formal action of the agency’s governing body. These are considered legally
restricted and can only be removed or changed by formal action of the governing
body. Action to constrain resources should occur prior to the end of the fiscal year,
though the exact amount may be determined subsequently.
• Assigned - amounts that are constrained by the governing body’s intent to be used
for specific purposes but are neither restricted nor committed.
• Unassigned - used by General Fund for residual classification of positive funds.
Recommended Reserve Designations for Fiscal Year 2017 -18
The General Fund Reserves Summary (Attachment 1) provides a listing of reserve
balances by category and includes a description of the reason for any change. While
the Fiscal Year 2017 -18 year -end balances are not yet final until the City closes its
financial books, Staff can make reasonable assumptions about estimated reserve
balances at this point.
Many of the reserve changes are due to the spending down of Committed Reserves
for budgeted capital improvement project expenses during Fiscal Year 2017-18. Other
shifts are related to year-end accounting policies, such as the annual adjustments to
long-term General Fund advances, and the spending down of carry-over reserves
from the prior year.
This Staff Report also transmits a Resolution (Attachment 2) which confirms
designations only of Committed Reserves for Fiscal Year 2017-18, as City Council
approval of Assigned Reserves is not necessary by resolution. However, Staff seeks
City Council direction on each of the following recommended designations:
Committed Reserves:
• Public Safety Reserve - Increase this reserve by $400,000 for a total of $2,000,000
for future police service needs.
• Downtown Public Improvements – Increase this reserve by $2,547,830 for a total
of $3.0 million for future investment in the Downtown.
• Economic Development – Increase this reserve by $1,000,000 for a total of
$3,000,000 for citywide economic development efforts.
• Fire OPEB (Retiree Health) – During the reserve designations of Fiscal Year 2016 -
17, the City Council approved contributing $250,000 annually to this source, until
the next actuarial study is done that will clarify the City’s ongoing liability to Fire
retiree health.
• Shannon Center Parking Lot – Add $75,000 to this reserve to bring it equal to the
total budget for this project.
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Assigned Reserves:
• Non-Streets CIP Commitments – Increase by $120,484 for a total of $4,000,000.
• Catastrophic Loss – Increase by $2,550,000 (for the second year) to include 15%
of the construction value of The Wave ($34,000,000) in this reserve category.
• Pension and OPEB – Increase this reserve by $1,385,647 for a total of
$12,000,000 to cover future pension rate increases.
• Municipal Regional Permit – Increase this reserve by $500,000 to provide funding for
required citywide green infrastructure work over the next several years.
• Parks and Streets Maintenance Contingency – Create this reserve and fund it at
$250,000, rather than including it as an annual budget item. The City could then
access this funding as needed.
• Contribution to Internal Service Funds (ISF) – Increase this reserve by $1,250,000 to
cover the planned transfer from the General Fund to the Internal Service Funds that
were included in the Fiscal Year 2018-19 Budget.
• Contribution to Internal Service Funds - Staff recommends setting aside $500,000
for a future contribution to Internal Service Funds, which would be used for seed
funding for known future replacement needs (such as turf at Fallon Sports Park
Phase II, and playground upgrades and replacements at City parks).
• Fire Equipment Replacement – Increase this reserve by $100,000 to cover the
planned purchase of Self -Contained Breathing Apparatus per the City’s contract
with the Alameda County Fire Department.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. General Fund Reserves Summary
2. Resolution Authorizing a Special Designation of General Fund Reserves for Fiscal
Year 2017-18
GENERAL FUND RESERVES SUMMARY ATTACHMENT 1
PRELIMINARY YEAR-END FY 2017-18
Reserve Balances
Actual
2016-17
Increase
2017-18
Decrease
2017-18
NET
CHANGE
Projected
2017-18 Note
Non-Spendable 198,875$ -$ (159,613)$ (159,613)$ 39,262$
Prepaid Expenses 39,262 - 39,262
Advance to Public Facility Fees - - -
Advance to PERS Side Fund 159,613 (159,613) (159,613) - Pay down of advance
Restricted 1,762,000$ -$ -$ -$ 1,762,000$
Heritage Park Maintenance 750,000 - 750,000
Cemetery Endowment 60,000 - 60,000
Developer Contr - Downtown 873,000 - 873,000
Developer Contr - Nature Pk 60,000 - 60,000
Developer Contr - Heritage Pk 19,000 - 19,000
Committed 36,213,716$ 4,272,830$ (3,556,729)$ 716,102$ 36,929,817$
Economic Stability 8,000,000 - 8,000,000
Public Safety Reserve 1,600,000 400,000 400,000 2,000,000 Increased to support future police service needs
Downtown Public Impr 452,170 2,547,830 2,547,830 3,000,000 Increased for investment in Downtown.
Economic Development 2,000,000 1,000,000 1,000,000 3,000,000 Transferred from Affordable Housing Reserve.
Emergency Communications 741,000 - 741,000
Fire Svcs OPEB 3,334,672 250,000 250,000 3,584,672 Per City Council direction - June 2017.
Innovations & New Opport 1,813,408 - 1,813,408
One-Time Initiative 1,341,408 - 1,341,408
Specific Committed Reserves
Maintenance Facility 76,033 (76,033) (76,033) - Decreased for project expense budget.
Cemetery Expansion 5,272,210 (1,493,072) (1,493,072) 3,779,138 Decreased for project expense budget.
Fallon Sports Park 200,000 (200,000) (200,000) - Decreased for project expense budget.
Civic Ctr Expansion 22,746 (22,746) (22,746) - Decreased for project expense budget.
Storm Drain Trash Capture 722,198 (722,198) (722,198) - Decreased for project expense budget.
Shannon Center Parking Lot 967,680 75,000 (1,042,680) (967,680) - Decreased for project expense budget.
Utility Undergrounding 1,170,190 - 1,170,190
Advance to Public Facility Fee 6,000,000 - 6,000,000
Dublin Sports Ground 2,500,000 - 2,500,000
Assigned 50,126,808$ 6,156,131$ (3,729,548)$ 2,426,583$ 52,553,391$
Accrued Leave 998,235 - 998,235 Accounts for the value of employee leave earned.
Operating Carryovers 1,240,217 (1,240,217) (1,240,217) - Assumes all GF operating budgets are spent.
CIP Carryovers 1,739,331 (1,739,331) (1,739,331) - Assumes all GF-funded CIP budgets are spent.
Non-Streets CIP Commitments 3,879,516 120,484 120,484 4,000,000 To bring this to an even funding level.
Catastrophic Loss 13,918,531 2,550,000 2,550,000 16,468,531 To equal 15% book value of buildings.
Service Continuity 3,150,000 - 3,150,000 To fund future 18-month lag for slowdown of development.
Pension Rate Stabilization Plan 2,000,000 - 2,000,000
Chevron Debt Payoff 5,238,622 - 5,238,622 This will be paid in FY 18-19.
Pension & OPEB 10,614,353 1,385,647 1,385,647 12,000,000 Increased to cover future pension costs.
Fiscally Responsible Adj 325,000 - 325,000
Municipal Regional Permit 1,870,030 500,000 500,000 2,370,030 Increased for Climate Action Plan and related work.
HVAC Replacement 2,000,000 - 2,000,000 In addition to $1.2 million in Building Replacement Fund.
Relocate Parks Dept 250,000 - 250,000 Upon completion of the new Public Safety Complex.
Civic Ctr Renovation-Police 1,962,100 - 1,962,100
Parks and Streets Contingency 250,000 250,000 250,000 To fund unforseen maintenance needs.
Façade Improvement Grants 250,000 - 250,000
Contribution to ISF 500,000 1,250,000 (750,000) 500,000 1,000,000 Decreased for transfer to ISF; increased for transfer in FY 18-19.
Fire Equipment Replacement 190,873 100,000 100,000 290,873 To fund Fire SCBA and radio equipment per contract
Unassigned 34,115,192$ 7,445,890$ (8,147,592)$ (701,702)$ 37,080,614$
Unassigned-Unrealized Gains (3,860,531) (3,860,531)
Unassigned (Available)37,975,723 40,941,145 6.4 months of FY 18-19 budget.
TOTAL RESERVES 122,416,591$ 17,874,851$ (15,593,481)$ 2,281,370$ 124,697,961$
ATTACHMENT 2
RESOLUTION NO. XX – 18
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*******************************
AUTHORIZING A SPECIAL DESIGNATION OF GENERAL FUND RESERVES FOR
FISCAL YEAR 2017-18
WHEREAS, the City's Fund Balance and Reserves Policy requires special fund
balance allocations to be adopted by the City Council, and allows the City Council to
take action prior to the end of the fiscal year to direct a specific assignment of the fund
balance; and
WHEREAS, Staff reviewed updated information regarding fund balance and
estimated onetime revenues during the preparation of the Fiscal Year 2018-19 Budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Dublin does hereby make a special allocation of the estimated Fiscal Year 2017-18 year
-end balance to the Committed fund balance subcategories as follows:
BE IT FURTHER RESOLVED that, any net resources remaining after special
designations, and after meeting the Fund Balance and Reserves Policy requirements,
will be left in the Unassigned (Available) Reserve.
PASSED, APPROVED AND ADOPTED this 19th day of June, 2018.
AYES:
NOES:
ABSENT:
ATTEST:
Reserve Balances
Actual
2016-17
Increase
2017-18
Decrease
2017-18
NET
CHANGE
Projected
2017-18
Committed 36,213,716$ 4,272,830$ (3,556,729)$ 716,102$ 36,929,817$
Public Safety Reserve 1,600,000 400,000 400,000 2,000,000
Downtown Public Impr 452,170 2,547,830 2,547,830 3,000,000
Economic Development 2,000,000 1,000,000 1,000,000 3,000,000
Fire Svcs OPEB 3,334,672 250,000 250,000 3,584,672
Shannon Center Parking Lot 967,680 75,000 (1,042,680) (967,680) -
ATTACHMENT 2
___________________ ___________________
City Clerk Mayor