HomeMy WebLinkAbout4.8 - 3277 FY 19-20 General Fund Reserve Designations
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STAFF REPORT
CITY COUNCIL
DATE: June 16, 2020
TO: Honorable Mayor and City Councilmembers
FROM:
Linda Smith, City Manager
SUBJECT:
Special Designation of General Fund Reserves for Fiscal Year 2019 -20
Prepared by: Lisa Hisatomi, 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 2019 -20.
STAFF RECOMMENDATION:
Adopt the Resolution Authorizing a Special Designation of General Fund Reserves for
Fiscal Year 2019-20.
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. The Fiscal Year
2019-20 Unassigned (Cash Flow) Reserve is projected at $68,008,054, which is
equivalent to 10 months of the Fiscal Year 2020-21 General Fund operating budget.
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
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other agencies, or (b) imposed by law through constitutional provisions or enabling
legislation.
• 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 p rior 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 2019-20
The General Fund Reserves Summary (Attachment 1) provides a listing of reserve
balances by category. While the Fiscal Year 2019 -20 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 2019 -20 and
the spending down of carry-over reserves from the prior year. Other shifts are related
to year-end accounting policies.
This Staff Report also transmits a Resolution (Attachment 2) which confirms
designations only of Committed Reserves for Fiscal Year 2019-20, 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:
• Fire Service Pension/OPEB - Increase this reserve by $317,325 utilizing budget
savings from the FY 2018-19 fire service contract that was carried over to Fiscal
Year 2019-20, for a total of $3,901,997, to fund both pension and OPEB
obligations; renamed from Fire Services OPEB.
• Cultural Arts Center - Create the new reserve and transfer $3,779,138 from the
reserve for the Cemetery Expansion to fund the additional identified programmatic
elements and needed structural upgrades in the Cultu ral Arts Center project, as
identified in the schematic design approved by the City Council.
• Advance to Public Facility Fee - Create a new reserve and set aside half of the
expected surplus in FY 2019-20 to advance the construction of Wallis Ranch
Community Park, Jordan Ranch Neighborhood Square, and Library Tenant
Improvement projects. These projects are included in the 2020-2025 Capital
Improvement Program but are funded by the Public Facility Fees Fund which
currently has insufficient cash flow to cover these projects. The year-end surplus is
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estimated $8.8 million, therefore the addition to this reserve is recommended at
$4.4 million. The reserve may further be adjusted when the year-end balance is
finalized.
• Rename the current Advance to Public Facility Fee reserve in the amount of $6
million to Contribution to Public Facility Fee as this is the anticipated shortfall in the
Fee Program.
Assigned Reserves:
• Village Parkway Pavement Reconstruction - Create this reserve to set aside $2
million each year to accumulate funding for the planning, design, and
reconstruction of Village Parkway north of Amador Valley Boulevard to the City
limit. The estimated total project cost is $10 million. The project is currently
identified in the Future Years section of the recently adopted Capital Improvement
Program.
• Contribution to Internal Service Funds (ISF) – Increase this reserve by $1,000,000
to cover the planned transfer from the General Fund to the Internal Service Funds
that is included in the Fiscal Year 2020-21 Budget.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Fiscal Year 2019-20 General Fund Reseves
2. Resolution Authorizing a Special Designation of General Fund Reserves for Fiscal
Year 2019-20
FY 2019-20 GENERAL FUND RESERVES
RESERVE DESCRIPTION
Actual
2018-19
Increase
2019-20
Decrease
2019-20
Net
Change
Projected
2019-20
Non-Spendable $12,818 $12,818
Prepaid Expenses 12,818 12,818
Restricted $1,938,000 $441,000 $441,000 $2,379,000
Heritage Park Maintenance 750,000 750,000
Cemetery Endowment 60,000 60,000
Developer Contr - Downtown 1,049,000 441,000 441,000 1,490,000
Developer Contr - Nature Pk 60,000 60,000
Developer Contr - Heritage Pk 19,000 19,000
Committed $47,267,326 $8,496,463 ($14,178,995)($5,682,532)$41,584,794
Economic Stability 8,000,000 8,000,000
Public Safety Reserve 2,000,000 2,000,000
Downtown Public Impr 4,000,000 (545,375)(545,375)3,454,625
Economic Development 2,806,486 (2,806,486)(2,806,486)
Emergency Communications 532,113 (1,736)(1,736)530,377
Fire Svcs Pension/OPEB 3,584,672 317,325 317,325 3,901,997
Innovations & New Opport 1,133,753 (239,299)(239,299)894,455
One-Time Initiative - Operating 503,860 503,860
One-Time Initiative - Capital 5,837,548 (2,387,901)(2,387,901)3,449,647
Specific Committed Reserves
Maintenance Facility (CIP)71,753 (71,753)(71,753)
Don Biddle Park (CIP)1,000,000 (600,000)(600,000)400,000
Cemetery Expansion (CIP)5,270,875 (5,270,875)(5,270,875)
Cultural Arts Center (CIP)3,779,138 3,779,138 3,779,138
Fallon Sports Park II (CIP)110,500 (9,995)(9,995)100,505
Fallon Sports Park III Contingency 3,000,000 3,000,000
Utility Undergrounding (CIP)1,170,190 1,170,190
Advance to Public Facility Fee 4,400,000 4,400,000 4,400,000
Contribution to Public Facility Fee 6,000,000 6,000,000
Dublin Sports Ground (CIP)2,245,576 (2,245,576)(2,245,576)
Assigned $60,771,811 $5,776,949 ($19,901,961)($14,125,012)$46,646,798
Accrued Leave 1,001,744 1,001,744
Operating Carryovers 2,805,459 1,418,394 (4,223,853)(2,805,459)
CIP Carryovers 4,006,912 1,358,555 (5,365,467)(4,006,912)
Non-Streets CIP Commitments 2,462,100 2,462,100
Catastrophic Loss 15,764,599 15,764,599
Service Continuity 3,150,000 3,150,000
Pension Rate Stabilization Plan 2,000,000 2,000,000
Pension & OPEB 14,000,000 14,000,000
Fiscally Responsible Adj 325,000 325,000
Municipal Regional Permit 2,360,673 (1,183,575)(1,183,575)1,177,098
HVAC Replacement (CIP)2,000,000 (2,000,000)(2,000,000)
Relocate Parks Dept 250,000 250,000
Parks and Streets Contingency 250,000 250,000
Specific Assigned Reserves
Civic Ctr Renovation-Police Wing 2,962,100 2,962,100
Village Pkwy Pavement (Future CIP)2,000,000 2,000,000 2,000,000
Public Safety Complex (CIP)5,900,000 (5,900,000)(5,900,000)
Façade Improvement Grants 304,157 304,157
Contribution to ISF 1,000,000 1,000,000 (1,000,000)1,000,000
Fire Equipment Replacement 229,066 (229,066)(229,066)
Unassigned $61,235,819 $34,080,956 ($25,121,831)$8,959,126 $70,194,945
Unassigned-Unrealized Gains 2,186,891 2,186,891
Unassigned (Available)59,048,929 68,008,054
TOTAL RESERVES $171,225,773 $48,795,368 ($59,202,787)($10,407,419)$160,818,355
ATTACHMENT 1
RESOLUTION NO. XX – 20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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AUTHORIZING A SPECIAL DESIGNATION OF GENERAL FUND RESERVES FOR
FISCAL YEAR 2019-20
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 one-time revenues during the preparation of the Fiscal Year 2020-21 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 2019-20 year-end
balance to the Committed fund balance as follows:
• Create a new reserve for Cultural Arts Center and transfer $3,779,138 from
reserve for Cemetery Expansion
• Increase the reserve for Fire Service Pension/OPEB by $317,325
• Create a new reserve for Advance to Public Facility Fee, funded with half of the
Fiscal Year 2019-20 surplus after the year-end balance is finalized, for Wallis
Ranch Community Park, Jordan Ranch Neighborhood Square, and Library
Tenant Improvements projects.
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 16th day of June 2020 by the following vote:
AYES:
NOES:
ABSENT:
___________________
Mayor
ATTEST:
___________________
City Clerk