HomeMy WebLinkAboutR-10728 - Approving the 2015-17 Financial Plan Supplement, adopting 2016-17 budget, amending Fund Balance & Reserve PolicyRESOLUTION NO. 10728 (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE 2015-17 FINANCIAL PLAN
SUPPLEMENT, ADOPTING THE 2016-17 BUDGET, AND AMENDING
THE FUND BALANCE AND RESERVE POLICY (C)
WHEREAS, the Council adopted the 2015-17 Financial Plan on June 23, 2015, which
established comprehensive financial and policy guidelines for fiscal years 2015-16 and 2016-17;
and
WHEREAS, the 2015-17 Financial Plan included appropriations for fiscal year 2015-16;
and
WHEREAS, the City Council has reviewed proposed changes to the 2015-17 Financial
Plan to be effective for fiscal year 2016-17 after holding noticed public hearings; and
WHEREAS, the 2015-17 Financial Plan includes budget and fiscal policies that provide
direction on Financial Plan Objectives, Financial Report, 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 Management, Capital Financing and Debt Management, Human Resource
Management, Productivity, and Contracting For Services; and
WHEREAS, the proposed Organizational Efficiency, Effectiveness and Transparency
Initiative Significant Operating Program Change in the 2016-17 Financial Plan Supplement
appropriates fund for the purchase of an Enterprise Resource Planning (ERP) system to replace
the City's finance and accounting system and to provide additional functionality to increase
productivity and efficiency of City services; and
WHEREAS, the ERP system will be purchased over three fiscal years as a Software -as -a
Service (SaaS), meaning it does not fall within the definition of a Capital Improvement Project as
defined under budget and fiscal policies which allows for carryover for three years after budget
adoption; and
WHEREAS, amending Fund Balances and Reserves Policy (C) will allow for the
carryover of appropriated funding for the ERP system for the duration of the project; and
WHEREAS, the City Manager submitted the 2015-17 Financial Plan Supplement and
the 2016-17 Financial Plan Supplement to the City Council for their review and consideration at
a duly noticed meeting.
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Resolution No. 10728 (2016 Series)
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NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
1. That the above recitals are true and correct.
2. That the Budget and Fiscal Policy, Fund Balance and Reserve Policy (C), is hereby
amended in its entirety to read as follows "Information Technology (IT) Replacement
Fund. The City will establish an IT Replacement Fund for the General Fund to
provide for the timely replacement of information technology, both hardware and
software, with an individual replacement cost of $25,000 or more. During the 2015-
17 Financial Plan period, the City will establish and maintain a minimum fund
balance in this fund equal to $400,000 for the emergency replacement of equipment
that is damaged beyond repair and not covered under the City's property insurance
program. Interest earnings and the proceeds from the sale of surplus equipment as
well as any related damage and insurance recoveries will be credited to the fund.
Funds appropriated for the Enterprise Resource Planning system in the 2016-17
Financial Plan Supplement may be carried over for the duration of the project. "
3. That the 2015-17 Financial Plan Supplement and the 2016-17 Supplemental Budget is
hereby adopted with amendments shown in Exhibit A provided as attachment to this
resolution.
Upon motion of Council Member Ashbaugh, seconded by Mayor Marx, and on the following roll
call vote:
AYES: Council Member Ashbaugh, Vice Mayor Carpenter and Mayor Marx
NOES: Council Members Christianson and Rivoire
ABSENT: None
The foregoing resolution was adopted this 14`h day of June 2016.
rl"Puw�4--
Ma Jan Marx
ATTEST:
4 L.
Lee Price, MMC
Interim City Clerk
R 10728
Resolution No. 10728 (2016 Series)
Y Christine Dietri
City Attorney
Page 3
IN WITNESS WHEREOF, I have hereunto set my 4apd and affixed the official seal of the City
of San Luis Obispo, California, this Alay of�
Lee Price, MMC
Interim City Clerk
R 10728
Resolution No. 10728 (2016 Series)
EXHIBIT A
Exhibit A — Changes to the Proposed Budget
General Fund: Decrease CIP Infrastructure Designation
Decrease CIP Infrastructure Designation
Transfer -out to Parkland Development Fund
Parkland Fund: Appropriate Funds for Parkland Acquisition
Transfer -in from General Fund
Increase Expenditures
Parkin Fund: Appropriate Funds for Parking Demand Model
Increase Expenditures
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$ 900,000
$ 900,000
$ 900,000
$ 900,000
$ 100,000
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