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MAY ---D2-1996 12:07 FROM CITY OF COLTON RDA <br />I I � I - --- - - - - - - - - <br />Reserve AnalysLs <br />Recommndoftm <br />TO CITY MANAGER P.05 <br />Af&m ft Council F-LvAl policy to maintain a General Fund EmwB=Y Ree0m Of at least <br />SPA of G=wg Fund operating exPtuditUfts' Contribute $250p000 to the cmeMOICY reserve <br />in Fy 1995-96 and strive toward a full fWing level by fiscal yea 1"7-93. <br />piscal Impad of ReommmmWfion <br />I <br />1. Will requireaGenc:81 Fund conuibutionof $250,000 in FY J995 -96,$350j000 WFY <br />1996-97 and S345,0W b2 Fy 1997-98, for 3 total allocation of S945,000 over *e nod em <br />years. <br />General Ftind -'.CIW Counoll Confingancy Peadive <br />City Council FlUal policy. M&itltain a 1CM V of no less than 1.5*/* of Cmeral Fund operalimS <br />m.Venditures- MW purpose of this reserve is to provide for mon-secauiDS6 uUWACiPat0d <br />PW&Ures or f that <br />or known projoeWprogra= with unknown cog& 1, is fidly andc4mod this <br />reserve will be dmwn qpan =may to address OPOrAtIng neeft Ofthe C4V' 1n O*etrad� the <br />C <br />..eral pmd Emergency Reserm is generally not expected to be used on an anmal bmsix. <br />Based an LTFp recom=admions and the City's fiscal policy rcquiramits a Contingency <br />Reserve coambution of S242oOQO, or 1.29% Of Operating exPcnd'Wmsl was allocated in the Fy <br />1994.95 BudgeL Fm*mwm it was andeirmled that aPPWXim0tdy $60 -ODD would be s"ed <br />and =*ibuted to *0 mmw if an unpaid Wough was W&W for a third consecutive year. <br />However, ft %dough period was finded by a reduction in anployce lcm accounts which <br />reduced ft CiW,s contingm, lighillned for accrued lc*vc but did not increase the reserve to the <br />required 1.5%. <br />RecommwWAUM <br />Recommmil that the CQUUcil Fiscal policy on the Council Conthmptroy Reserve be revised <br />fmm 1.5% ofoeneral Fund Operating expenditures to 1% Of 0006"d PI'd operating <br />,qm� beW oe, ft hismeal level of ey4=dlum- This will Tequire a toW <br />contribution of approxBnatelY $M,000 W Fy 1995 -96 - <br />As Pdceted in *0 f <br />ollowing chart, average =q=djtu= brom Council Contingency R=K'V= <br />over the peg jOur yt= muount to V 24,350. <br />4 <br />r <br />L <br />L <br />0, <br />W <br />am <br />