HomeMy WebLinkAboutR-10912 approving the 2017-19 Financial Plan Supplement, adopting the 2018-19 budget, and amending the Fund Balance and Reserve PoliciesRESOLUTION NO. 10912 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE 2017-19 FINANCIAL PLAN
SUPPLEMENT, ADOPTING THE 2018-19 BUDGET, AND AMENDING
THE FUND BALANCE AND RESERVE POLICIES.
WHEREAS, the Council adopted the 2017-19 Financial Plan on June 20, 2017, which
established comprehensive financial and policy guidelines for fiscal years 2017-18 and 2018-19;
and
WHEREAS, the 2017-19 Financial Plan included appropriations for fiscal year 2017-18;
and
WHEREAS, the City Council on April 17, 2018 adopted a Fiscal Health Contingency Plan
in response to rising Ca1PERS pension costs; and
WHEREAS, the City Council has reviewed proposed changes to the 2017-19 Financial
Plan that are guided by the adopted Fiscal Health Response Plan and are to be effective for fiscal
year 2018-19 resulting in operating program reductions, new ways of doing business, and new
revenues; and
WHEREAS, the 2017-19 Financial Plan includes budget and fiscal policies that provide
for direction on Financial Plan Objectives, Financial Reports, Budget Administration, General
Revenue Management, User Fee Cost Recovery Goals, Enterprise Fund Fees and Rates, Revenue
Distribution, Investments, Appropriations Limitation, Fund Balance and Reserves, Capital
Improvement Project Management, Capital Financing and Debt Management, Human Resource
Management, Productivity, and Contracting for Services; and
WHEREAS, it is proposed that the following be added to the City's adopted Financial
Policies section Fund Balance and Reserves as letter "J". A General Fund Revenue Stabilization
Fund. The City will maintain a reserve for the purposes of offsetting unanticipated fluctuations
in general fund revenues to provide financial stability. The funding target for the Revenue
Stabilization Reserve will be $1,000,000 during the term of the adopted Fiscal Health Response
Plan. Use and allocations of funds of the Revenue Stabilization Fund will be made upon Council
approvals of the Financial Plan or as becomes necessary during any fiscal year.; and
WHEREAS, it is proposed that the following be added to the City's adopted Financial
Policies section Fund Balance and Reserves as letter "K". K. Capital Projects Reserve Fund. The
City will maintain a reserve for the purposes of offsetting unanticipated cost increases, unforeseen
conditions, and urgent unanticipated projects to provide continued investment in infrastructure
maintenance and enhancement. Use and allocations of funds from the Capital Projects Reserve
Fund will be made to Capital Projects including Fleet, Information Technology, and Major
Facility Replacement upon Council approvals of the Financial Plan or as necessary during any
fiscal year; and
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Resolution No. 10912 (2018 Series) Page 2
WHEREAS, it is proposed that the following be added to the City's adopted Financial
Policies section Long -Term Financial Planning Letter "B". In applying unassigned fund balances
to pay down long-term unfunded liabilities a two-part strategy will be used to address the liability
to the greatest extent possible. One, annual payments to CaIPERS for unfunded liabilities will
address interest and principal. Two, analysis of a Section 115 Trust as mechanism to address
future pension obligations and uncertainties will continue and a recommendation about formation
of the same will be made during the term of the adopted Fiscal Health Response Plan.; and
WHEREAS, The City Council will, with this 2017-19 Financial Plan Supplement and the
2018-19 Budget, appropriate: funds to the Infrastructure Investment Fund; grant funds to the Mid
Higuera Bypass project; Development Services Fees to the Electronic Plan Review project;
General Fund monies to design and construct a Park at 533 Broad Street; and reallocate various
funds from several projects to accomplish the Laurel Lane "Complete Street".
WHEREAS, the City Manager submitted the 2017-19 Financial Plan Supplement and the
2018-19 Budget to the City Council for its review and consideration at a duly noticed meeting.
NOW THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo
that:
1. The above recitals are true and correct.
2. The following shall be added to the City's adopted Financial Policies section Fund Balance
and Reserves as letter "J". J. General Fund Revenue Stabilization Fund. The City will
maintain a reserve for the purposes of offsetting unanticipated fluctuations in general fund
revenues to provide financial stability. The funding target for the Revenue Stabilization
Reserve will be $1,000,000 during the term of the adopted Fiscal Health Response Plan.
Use and allocations of funds of the Revenue Stabilization Fund will be made upon Council
approvals of the Financial Plan or as becomes necessary during any fiscal year.
3. The following shall be added to the City's adopted Financial Policies section Fund Balance
and Reserves as letter "K". K. Capital Projects Reserve Fund. The City will maintain a
reserve for the purposes of offsetting unanticipated cost increases, unforeseen conditions,
and urgent unanticipated projects to provide continued investment in infrastructure
maintenance and enhancement. Use and allocations of funds from the Capital Projects
Reserve Fund will be made to Capital Projects including Fleet, Information Technology,
and Major Facility Replacement upon Council approvals of the Financial Plan or as
necessary during any fiscal year.
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Resolution No. 10912 (2018 Series)
Page 3
4. The following shall be added to the City's adopted Financial Policies section Long -Term
Financial Planning as Letter "B". In applying unassigned fund balances to pay down long-
term unfunded liabilities a two-part strategy will be used to address the liability to the
greatest extent possible. One, annual payments to Ca1PERS for unfunded liabilities will
address interest and principal. Two, analysis of a Section 115 Trust as mechanism to
address future pension obligations and uncertainties will continue and a recommendation
about formation of the same will be made during the term of the adopted Fiscal Health
Response Plan.
5. That the 2017-19 Financial Plan Supplement and the 2018-19 Budget is hereby adopted as
presented in the Budget Supplement Document.
6. Appropriate $129,000 in unspent funds in the 2017-2018 fiscal year in the City Attorney's
Office for code enforcement, limited supplemental legal staffing support approved in
conjunction with the Motion project, for the same purposes approved in the 2018-2019
budget, as well as for legal services to support future comments for Cal Poly's revised EIR
for the Master Plan and any necessary elections support, and authorize the City Manager
to enter any necessary agreements within the appropriations amount to provide these legal
services.
Upon motion of Council Member Rivoire, seconded by Vice Mayor Christianson, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 19th day of June, 2018
ATTEST:
7
eresa Purrington
City Clerk
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Resolution No. 10912 (2018 Series)
APPROVED AS TO FORM:
Page 4
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 16" day of c7ax - 26x1
Teresa Purrington,
City Clerk
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