1996 AGN JUL 02 I17 - Laserfiche WebLink

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MAY -22-1996 12:10 FROM CITY OF COLTON RDA TO CITY MPINAMR P.09 moreiditu � mb4u�LQ6Go --- ---- Reserve Analris no projeacd deficit fund balance in June 1995 is S790,000. That figure, when added to the $400,000 SIR equals $1,190,000. jj3ing this now figurc along with the projected deficit, over four yms, the required annuok contribution is $297,500 as opposed to the 1994 LTFP Tecurnmended contribution of $271,200, an increase of S26,300- It should be noted that the deficit did not decrease as much ez projected in the 1993 LTFP resulting in a higher mommended transfer. Recommendation ' Maintsinareteryelevel based on the historic trend of junrual claims paid and tansfer $297,500 anawZy toward derscit reduction and the build up of the required reserwe ow the Um fovr years. Rww Imped no recommended annual contribution is $297,300. iw, convitWon will crese, the deficit and build up rLquned rr=m %vithin fow yews, Funding in FY 1995-96 of $297,500 will require an ellocetion of approximately Sl I )00o from the General Fund with the rMMWW 11110=6011 Of S196,0DO to be provided by contributions from other impacted ftnds- The fund allocations are based on the y�r. proportion of current workers rompensaliOn Payments from each fimd- Accruod 1ANW& ROWM City Council FLOW Policy! M&Mteln an account to =Cumulate ftX19 to be Used for p1lyment Of accrued leave payable to employees upon tom2ination or retircuieft The 1993 L77P recommended an annual contribution of $75,000 in Fy 1993-94 and $50,000 for cad yea thtweafter, based on average annual experience. The FY 1"3-94 budget provided the recommeadW fundire level of S75,000. in FY 1994-95 an additional $75,000 was allocated to this Amd. Based on the two years since this fund was established, average Costs continue to be about $73,000 annually. This does not fauor in the cost savings that vAll be evident in the ftfte due to reduedow in the number of employees. 7, ='. Continue to base the soonsed leave reserve level on average amusl PAYOut experience ond trans*r $75,000 to do fund in FY 1"5-96. w