1996 AGN JUL 02 I17 - Laserfiche WebLink

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!2:0C, ;:Rom CITY OF COLTON RDA TO CITY 1,T44AGEP P.02 r) Reserve Analysis objectwe To analy= and recommend appropriate levels of reserves to (a) ensure that I* are adequ to provide for the needs of ewl fund PrOgnun and (b) meet Progr= needs vnthout unnece's'st"'y obligating scarce dollar resources. Summary Tbe reserve ftds analyzed include: oencrai Fund Emergency Rcscm C,==%I Fund - (3ty Ce=ca Contingency Reserve Gemal Liability h1surati-CO Fund Workers, Compmation bsuranceFund Accrued Leave Raerve A� Employee medical houranoc Fund Flo" R*=nw Rem" Capital Equipomwit Replacement Fund Each fin-ld is c==tfy supported by charges to the operating budgets and odker interdepartmental U=dem Each fund should maintain a positive fund balance and a reserve fed by appropriate internal charges and transfem The question becomes one of establishing adequate charges to opere4ng budgets to keep the A2nd in belance and banding a prudent reserve while avoiding an ova teqntrxitment of dollar resources. A prudent set aside is one that provides financlal %ecurity to the fund witlund pladng an unrealistic burden on operating rmurces to support it. In good economic times, the City Can atTord to be prouctive in building up reserves. But when Money is tight, the City may not be able to afford the luxury of obligating the optimum amount of money to such purposes and incremental steps may be acomury, Background The initial Long Term y"W=W Plan w'Vs completed in January. 1993 (19" LTFP) and updated in January, 1994 (1994 LjW), be* pin!t nude recommendations addressing negative *6d beiances and the critical need to build up severely underfunded and non-odstent reserve levels. The 1993 LjW pjsmbed annual amounts to be contributed to these funds Over flve years in order to accomplish those obk-cdvcs, The annual 91001101 to be contributed was updated in the 1994 LWp based an actual contributions made in the 1993-94 fiscal year and adjustments in the A" . V& negative, fund bal-noes ITEM 17