1996 AGN AUG 06 I27 - Laserfiche WebLink

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1=:f5 ;7PCfl ITY OF COLTON PDA TO CITY IhIANAOEP P.O= Reserve Analysis objective To aaaiyzo and recommamd appropriate lovas of reserves to (a) ensure that they are adequate to provide for the nems of each ftmd program and (b) meet program needs without unaccessarily obligating scarce dollar resources. Summary The reserve funds analyzed intrude: • Oeaeral Fund Emergency Rcscrve Pa ° r�. Crencal Fund - Contingency Reserve Getmnal Liability Insurance Fund v workes' Compensation insurance Fund Aocruad Leave Reserve Fund i qo rrJ . Fleet Replawme at Reserve I (o vac'• C,apipd Fquipment Replacement Fund peach fund is currently supported by charges to the operating budgets and other interdepartmental transfers. Each fimd should maintain a positive fund balance and a reserve fed by appropriate internal charges and transfers, The question becomes one of establishing adegt>ete charges to operating badgers to beep the Hind in balance and funding a prudent reserve while avoiding an over commitment of dollar resources. A prudent set aside is one that provides financial security to the fund without placing an uerealistic burden on operating resources to support it. In good economic times, the City can afford to be mono proactive in building up resorvcs. But, when money is tight, the City may not be able to afford the luxury of obligating the optimum amount of money to such purpoaes and incremental steps may be ncoasary. Background The initial Long Term Finandal Plan was completed in. LTFP), : plan made recommendations addressing negative fled balances and the critical meed to build up severely underfunded and non-atistent nec a n lev+ela. The LTFp pre=J;od annual amounts to be contributed to these funds over five years m order to axomphsh throe objectives. The annual amount to be cos It buted updated in time LTFP based on senmi contributions made in the fatal year and adjustments in the negative find balance& /�'�