1996 AGN JUL 02 I17 - Laserfiche WebLink

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MAY -22-199-6 12:06 FROM CITY OF COLTON RDA TO CITY MPINPGER P.04 Reserve Analysis GeneM FWW emwpmy ReSWV* f no less dm M of Gamul Fund *Puwiug city Council Fiscal Policy; Maintain a r05"yo (I expenditures. The purposc of this reserve is to provide for a so aside for significant economic dwwrilUMS, lasting two Is= Of 100, 1 and for unforosm 0M,,ftopMo events. This resem is to be accesnd Wy upon &a 0=0=06 of Serious corAitions Wwrlafing emerooncy meannis, An 89A rMcM level is based on the City's 309 Wstory of munally *mmod (Iloodirq6 stmW& 044.), poteaw recessionary or baflalk"My conditions and other sub damap tbe need for a General Fund &CM. Addl�i =tiUg Allancics gencWIY SCAMWIedge reserve of between 5.10% depending on the factors indicated Above - no 1993 LVP noted . bist-1c aed.. m ,,.,,d fimd Wows due to openAOW losses incurred begimft in Py 1989'"- The 1993 LTVp rcco=mded an sun" boost of S320t0DQ per year in order to Whim dw g% resem leval by FY 1997-96. Due to the confinuin downturn in the City's economic resourm only $120,000 was 4ftigapied to be added to tbc General PWd Memoulsted ftW bs� Wnen ft Mcrve to 3.3% of Gencral Fund OP001dog oTenditum TIN i w LTFP recomnumdod Posqmft any actions unfit after *c Mid -YM bwW Miew was Mwidedto det=be ft fa IMpW Of VS40US Cost reduction MCUUM Impiammad during that fiscal year in ord= to bs" a more accurate basis on whicli to assess tile 8% MM" requirement and the Mreqoading annual dollar eontribudor, It was assumed that a contribution between $300.000 and S35000 per year, would be neode4 Duao litnited re"w:ces "OVAO in Fy I qW95 It was not cmidered feasible to contribute the entire anxmt recommended in the 1"4 LTFP, dmvf= 01dy $150,000 was allocated In the budget to the E01211Y Raw" bringing *0 AMM29 ftWed to 3.9% of (Icn=21 Fund OPWAft asPendltwes- In order to provide fat the M 8% emergency roser"' a total ooftjution of S06,M would be rcqW=d,n Fy "S.%. Mo,"crease in the amount required is due to the projected Increase ilk continue he phub* in 41 *a General Pund operating budrA for FY 1995-96. In order to - t Mx*W md obmin full fumdiag of ft resave by FY 1997-99 It 90CM e0OVIOM1 resson"ID contribute the following amounts: Yew A&VUW % • Fy 1995-% W0,00D 5-17% * FY 1996-97 gso,000 6.6% • Py 1997-9t $34S,000 9% This will b#*'$ tto tow fimding for the rmergency Reserve to $1 .725 ronlion or 8% by FY 1997-98. Annual gUacations be&ming in FY Iggg-99 will only require minor o*SMMOft bosed on The actual h- in the e7cnerai romW operations budipt. 3