1996 AGN JUL 16 I29 - Laserfiche WebLink

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FR'019 C 1 TY OF COLTON R[Mi ........... _ .. .. _ _ _ _ . _ .. _ _ _ • _ TO C 1 TY h6itF. P. 05 Reserve Analysis Recommendation 1. Affirm the Council Fiscal Policy to maintain a General Fund Emergency Reserve of at least YA of General Fund operating expenditures. Contribute t to the emergency reserve in FY 14.' and strive lowatd a full funding level by fiscal year 19 Fiscal Impact of Recommendation 1. Will require a General flmd contribution of S in FY 19.. 5 : ' in FY 19 and S. in FY 19. for a total allocation of S over the next three Years. General Fund 'CIW Council Contingency Reserve City Council Fiscal Policy: Maintain a reserve of no less thea '% of General Fund operating expenditures. The purpose of this reserve is to provide for non -recusing, unanticipated expenditures or for known projects/programs with unknown costs It is fully anticipatzd that this reserve will be dmvrn upon annually to address operating needs of the City. In contrast, the General Fund Emergency Reserve is generally not expected to be used on an ansuel basis. Based on LTFP recommendations and the City's Fiscal Policy requirements a Contingency Reserve contribution of S , ', or .% of operating expenditures, was allocated in the FY 19 Budget. Furthermore, it was anticipated that approximately St would be saved and contributed to the reserve if an unpaid furlough was initiated for a third consecutiva year. However, the furlough period was funded by a reduction in employee leave accounts which reduced the City's contingent liabilities for accrued leave but did not increave the rasa m to the required *Vs,. Recommendaffon Recommend that the Council Fiscal Policy on the Council Contingency Reserve be revised from I% of General Fund operating axpenditum to % of Genual Pund operating expenditures based on the historical level of expcuditures. This will require a total contribution of approximately S 'n FY 19 As indicated in the following chart, average expenditures from Council Contingency Reserves over the past four years aarm= to S n 1 L