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HomeMy WebLinkAboutItem 8.1 General Fund Reserves FY 2013-14or 19 82 /ii � 111 DATE: TO: FROM: SUBJECT: STAFF REPORT CITY COUNCIL June 17, 2014 Honorable Mayor and City Councilmembers CITY CLERK File #330 -20 Christopher L. Foss, City Manager �?14 " Resolution Authorizing Special Designations of General Fund Reserves for Fiscal Year 2013 -14 Prepared by Colleen Tribby, Administrative Services Director EXECUTIVE SUMMARY: In accordance with the City of Dublin's Fund Balance and Reserves Policy, the City Council will consider making special designations of General Fund reserves for Fiscal Year 2013 -14. FINANCIAL IMPACT: Approval of the special designations of General Fund reserves will not result in any net change to total fund balance, but would shift reserves to add funding for the Emerald Glen Aquatics Complex, the Cemetery Expansion, the Shannon Center Parking Lot, and the Advance to Public Facility Fees Fund. RECOMMENDATION: Staff recommends that the City Council adopt a Resolution Authorizing a Special Designation of General Fund Reserves for Fiscal Year 2013 -14; and, by motion, direct Staff to implement the changes in the financial records. Submitted By Administrative Services Director DESCRIPTION: Reviewed By Assistant City Manager The City's Fund Balance and Reserves Policy (Policy) identifies the five classifications of fund balance to be used in the financial reporting of governmental funds, and defines the methodology of allocating net resources before the fiscal year end. Specifically, the Policy states that any excess fund balance, after designations to all other categories, and after providing for at least two months of ongoing expenditures in the cash flow reserve, go to the reserves for Pension and Retiree Health (50 %) and Non - Streets CIP (50 %). Page 1 of 3 ITEM NO. 8.1 Staff is proposing that the City Council adopt special designations of fund balance as of June 30, 2014. These designations include the shifting between sub - categories under the broader component of Committed reserves, as well as some new designations of Unassigned reserves for special purposes. The Resolution also creates two new reserve sub - categories for the 1) Shannon Center Parking Lot and the 2) General Fund Advance to the Public Facility Fees Fund. With City Council's approval, the following is a list of fund balances and projected balances at year -end to be reflected in the FY 2013 -14 financial statements: Restricted Reserves Heritage Park Maintenance Total Restricted Actual Increase Decrease Projected Non - Spendable Reserves 2012 -13 2013 -14 2013 -14 2013 -14 Prepaid Expenses 34,756 5,868,847 34,756 Cemetery Endowment 60,000 1,000,000 60,000 Advanceto Public Facility Fees - Affordabl e Housi ng - Advanceto Fire Impact Fee 1,098,606 (250,000) 848,606 Advanceto PERS Side Fund 1,642,768 (400,000) 1,242,768 Total Non - Spendable $ 2,836,130 $ - $ (650,000) $ 2,186,130 Restricted Reserves Heritage Park Maintenance Total Restricted 500,000 $ 500,000 500,000 $ - $ - $ 500,000 Civic Ctr Expansion 391,568 Committed Reserves - Public Safety Complex Economic Stability 5,868,847 5,868,847 Downtown Public Impr 1,000,000 1,000,000 Open Space Funding 2,000,000 (2,000,000) - Affordabl e Housi ng 1,000,000 1,000,000 Emerald Glen Aquatic Complex 1,500,000 1,500,000 (102,350) 2,897,650 Emergency Communications 741,000 741,000 Fire Svcs OPEB 7,610,058 400,000 8,010,058 Innovations & New Opport 1,372,785 1,372,785 Maintenance Facility 6,027,950 (6,027,950) - Cemetery Expansion 750,000 1,641,538 2,391,538 Fallon Sports Park - Committed Reserves, cont. Civic Ctr Expansion 391,568 (391,568) - Public Safety Complex 3,070,746 (3,070,746) - Jt City / School Projects 600,000 (600,000) - Non- Streets CIP Commitments 2,745,809 - 2,745,809 Shannon Center Parking Lot 775,000 775,000 Advanceto Public Facility Fee 2,000,000 2,000,000 One -Ti me Initiative 1,341,408 1,341,408 Total Committed $ 7,757,963 $ 2,775,000 $(3,670,746) $ 6,862,217 Page 2 of 3 Assigned Reserves Accrued Leave 896,658 896,658 0 pera ti ng Ca r ryovers 986,326 (986,326) - CIP Carryovers 265,845 (265,845) - Catastophic Loss 10,537,271 10,537,271 Service Continuity 2,410,000 2,410,000 Pension & OPEB 8,480,646 8,480,646 Fiscally ResponsibleAdj 336,150 325,000 (336,150) 325,000 Total Assigned $ 23,912,896 $ 325,000 $(1,588,321) $22,649,575 Unassigned Reserves Unassigned - Unrealized Gains (263,162) 263,162 - Unassigned (Available) 14,311,098 10,828,195 Total Unassigned $ 14,047,935 $ 263,162 $ - $10,828,195 Projected balances in all fund balance categories have been taken into account during the preparation of the Fiscal Year 2014 -15 Adopted Budget, with the expectation that many of the Committed reserves will be spent down over the next several years. Please note that, while the changes to Committed reserves can be authorized only by the City Council, the City Manager has the authority to make designations to Assigned reserves as fund balance allows. The changes to Assigned reserves included in this report are based on estimated revenues and expenses in the current fiscal year, and will be updated with exact amounts after closing entries are made. At the time of this report, it is estimated that the General Fund will have sufficient fund balance to provide for an Unassigned Cash Flow of $10,828,195 (2.15 months of budgeted operating expenditures), and a Catastrophic Loss reserve of $10,537,271. NOTICING REQUIREMENTS /PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Authorizing a Special Designation of General Fund Reserves for Fiscal Year 2013 -14 Page 3 of 3 RESOLUTION NO. -14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * * * * * * * * * * * * * * * ** AUTHORIZING A SPECIAL DESIGNATION OF GENERAL FUND RESERVES FOR FISCAL YEAR 2013 -14 WHEREAS, On June 4, 2013 the City Council adopted a revised Fund Balance and Reserves Policy; and WHEREAS, the 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 2014 -15 and FY 2015 -16 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 2013 -14 year -end balance to the Committed fund balance sub - categories as follows: Committed Reserves Actual 2012 -13 Increase 2013 -14 Decrease 2013 -14 Projected 2013 -14 Economic Stability 5,868,847 5,868,847 Downtown Public Impr 1,000,000 1,000,000 Open Space Funding 2,000,000 (2,000,000) - Affordable Housing 1,000,000 1,000,000 Emerald Glen Aquatic Complex 1,500,000 1,500,000 (102,350) 2,897,650 Emergency Communications 741,000 741,000 Fire Svcs OPEB 7,610,058 400,000 8,010,058 Innovations & New Opport 1,372,785 1,372,785 Maintenance Facility 6,027,950 (6,027,950) - Cemetery Expansion 750,000 1,641,538 2,391,538 Fallon Sports Park - Civic Ctr Expansion 391,568 (391,568) - Emergency Generator - - Public Safety Complex 3,070,746 (3,070,746) - Jt City/ School Projects 600,000 (600,000) - Non- Streets CIP Commitments 2,745,809 - 2,745,809 Shannon Center Parking Lot 775,000 775,000 Advance to Public Facility Fee 2,000,000 2,000,000 One -Time Initiative 1,341,408 1,341,408 Total $ 36,020,171 $ 6,316,538 $ (12,192,614) $ 30,144,095 BE IT FURTHER RESOLVED that, any net resources remaining after special designations, and after meeting the minimum requirement of two months cash flow in the Unassigned fund balance and a maximum of 15% asset book value in the Catastrophic Loss reserve, will be assigned as described in the policy: a) 50% to Pension and Other Post Employment Benefits; and b) 50% to the Non - Streets Capital Improvements Program reserve. ATTACHMENT 3 PASSED, APPROVED AND ADOPTED this 17th day of June, 2014. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk Page 2 of 2