HomeMy WebLinkAbout5.17 Special Designation of General Fund Reserves for Fiscal Year 2024-25
STAFF REPORT
CITY COUNCIL
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Agenda Item 5.17
DATE: June 17, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT:
Special Designation of General Fund Reserves for Fiscal Year 2024-25
Prepared by: Jay Baksa, Finance Director
EXECUTIVE SUMMARY:
The City Council will consider special designations of General Fund reserves for Fiscal Year
2024-25.
STAFF RECOMMENDATION:
Adopt the Resolution Authorizing a Special Designation of General Fund Committed
Reserves for Fiscal Year 2024-25 and confirm changes to General Fund Assigned Reserves.
FINANCIAL IMPACT:
Approval of special designations in the General Fund will not result in any change to total fund
balance but would shift resources among reserve categories. The Fiscal Year 2024 -25
Unassigned (Cash Flow) Reserve is projected at $69.3 Million after Staff’s recommendation of
special designations, which is equivalent to over seven months of the Fiscal Year 2025-26
General Fund operating budget. This is above the targeted cash flow of two to four months of
the operating budget.
DESCRIPTION:
Background
Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance
Reporting and Governmental Type Definitions, requires fund balance to be classified into
different categories for governmental funds depending on the extent to which the use of
resources is constrained for specific purposes.
Per GASB 54, the five fund balance classifications are:
Non-Spendable – amounts that cannot be spent because they are either (a) not in
spendable form, or (b) legally or contractually required to be maintained.
Restricted – balance with constraints placed on the use of the resources which are
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either (a) externally imposed by creditors, contributors, or laws and regulations of other
agencies, or (b) imposed by law through constitutional provisions or enabling legislation.
Committed – amounts that can only be used for specific purposes pursuant to formal
action of the agency’s governing body. These are considered legally restricted and can
only be removed or changed by formal action of the governing body. Action to constrain
resources should occur prior to the end of the fiscal year, though the exa ct amount may
be determined subsequently.
Assigned – amounts that are constrained by the governing body’s intent to be used for
specific purposes but are neither restricted nor committed.
The City typically makes designations to reserves twice a year – once in June with the
preliminary year-end results, and again when the books are closed in the fall.
Fiscal Year 2024-25 Year-End
Based on the most recent information, Staff is projecting an operating surplus of $26.4 million
in Fiscal Year 2024-25. After subtracting budgeted transfers out to capital improvement
projects that are funded by Reserves, contributions to the facilities replacement fund, and
adding transfers in, Staff is projecting an overall decrease to reserves of $28.3 Million as
shown in Table 1.
Table 1: Reserve Balance Summary
FY 2023-24 Reserve Balance $290.4 Million
FY 2024-25 Projected Operating Surplus $26.4 Million
Transfers Out (CIP) Assigned/Committed Reserves ($32.3 Million)
Transfers Out (CIP) Unassigned Cash Flow ($20.5 Million)
Contributions to ISF ($2.0 Million)
Transfers In $0.1 Million
FY 2023-24 Reserve Balance (Projected) $262.1 Million
Difference ($28.3 Million)
The General Fund Reserves Summary (Attachment 2) provides a listing of reserve balances
by category. The majority of the change is due to the spending down of Committed and
Assigned Reserves for budgeted capital improvement projects and the spending down of
carry-over reserves from the prior year. It should be noted that the Fiscal Year 2024 -25 year-
end balances are not final until the City closes its financial books, at which time Staff will bring
an update to the reserve designation.
Reserve Designation Recommendations
This Staff Report also transmits a Resolution (Attachment 1) which confirms designations and
changes only of Committed Reserves for Fiscal Year 2024 -25, as City Council approval of
Assigned Reserves is not necessary by resolution. Staff re commends the following reserve
designations as of June 30, 2025:
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Committed Reserves:
Lease Revenue Bond Payment – Increase $1,000,000
This is in accordance with City Council direction to make annual contributions to reserves for
the early payoff of the energy efficiency bonds. The increase of $1,000,000 will bring this
reserve balance to $9,000,000. The earliest the bonds can be paid off is Fiscal Year 2028-29,
and the total payoff amount will be $12.9 million.
Assigned Reserves:
Dublin Boulevard Extension Advance – Increase $3,563,913
This reserve is a cash flow advance to the Eastern Dublin Transportation Impact Fee (EDTIF)
program, which will be reimbursed by the fee program as development occurs. In March of
2023, Staff presented a funding plan for the Dublin Boulevard extension project which included
advancing $63,063,913 to the EDTIF program by the end of Fiscal Year 2024-25. The
recommended designation of $3,563,913 will bring the advance to the EDTIF program for the
Dublin Boulevard extension to the amount identified in the funding plan.
Due to the current economic uncertainty, Staff is recommending that any other reserve
designation be made when the Fiscal Year 2024-25 books are closed and final balances are
calculated.
STRATEGIC PLAN INITIATIVE:
Strategy 4: Inclusive and Effective Government
Objective A: Set reserves aside for major infrastructure investments which are key to the City’s
economic future.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) Resolution Authorizing a Special Designation of General Fund Reserves for Fiscal Year
2024-25
2) Fiscal Year 2024-25 General Fund Reserves Summary
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Attachment 1
Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 1
RESOLUTION NO. XX – 25
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING A SPECIAL DESIGNATION OF GENERAL FUND COMMITTED RESERVES
FOR
FISCAL YEAR 2024-25
WHEREAS, the City's Fund Balance and Reserves Policy requires special fund balance
allocations to be adopted by the City Council, and allows the City Council to take action prior to
the end of the fiscal year to direct a specific assignment of the fund balance; and
WHEREAS, Staff reviewed updated information regarding fund balance and estimated
one-time revenues during the preparation of the Fiscal Year 2025 -26 Budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby make a special allocation of the estimated Fiscal Year 2024-25 year-end balance to the
Committed fund balance as follows:
Increase the reserve for Lease Revenue Bond Payoff by $1,000,000
BE IT FURTHER RESOLVED that, any net resources remaining after special designations,
and after meeting the Fund Balance and Reserves Policy requirements, will be left in the
Unassigned (Available) Reserve.
PASSED, APPROVED AND ADOPTED this 17th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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FISCAL YEAR 2024-25 GENERAL FUND RESERVES SUMMARY
RESERVE DESCRIPTION
Actual
2023-24
Increase
2024-25
Decrease
2024-25
Net Change
2024-25
Projected
2024-25
Non-Spendable $54,709 $54,709
Prepaid Expenses 54,709 54,709
Restricted $9,351,801 $6,704,350 $0 $6,704,350 $16,056,151
Cemetery Endowment 60,000 60,000
Developer Contribution - Downtown 1,490,000 1,490,000
Developer Contr - Heritage Park 19,000 19,000
Developer Contr - Nature Park 60,000 60,000
Section 115 Trust - Pension 2,071,235 2,071,235
Public Facilities Advance 4,901,566 6,704,350 6,704,350 11,605,916
Heritage Park Maintenance 750,000 750,000
Committed $84,215,443 $1,000,000 ($13,544,158)($12,544,158) $71,671,286
Advance to Public Facility Fee 6,704,350 (6,704,350)(6,704,350)
Downtown Public Improvement 36,118,491 (363,279)(363,279)35,755,212
Economic Stability 8,000,000 8,000,000
Emergency Communications 532,113 532,113
Fire Svcs Pension/OPEB 2,211,094 2,211,094
Innovations & New Opportunity 894,498 894,498
One-Time Initiative - Capital 1,917,848 (1,418,339)(1,418,339)499,509
One-Time Initiative - Operating 503,860 503,860
Public Safety Reserve 4,600,000 4,600,000
Specific Committed Reserves
Contribution to Public Facility Fee 6,000,000 6,000,000
Cultural Arts Center (CIP)4,402,990 (4,227,990)(4,227,990)175,000
Don Biddle Park (CIP)675,193 (675,193)(675,193)
Fallon Sports Park III Contingency 100,000 (100,000)(100,000)
Lease Revenue Bond Payoff 8,000,000 1,000,000 1,000,000 9,000,000
Maintenance Facility (CIP)55,008 (55,007)(55,007)
Utility Undergrounding (CIP)3,500,000 3,500,000
Assigned $153,402,584 $3,563,913 ($44,927,462)($41,363,549) $112,039,035
Accrued Leave 1,518,423 1,518,423
Catastrophic Loss 17,714,064 17,714,064
CIP Carryovers 16,670,673 (16,670,673)(16,670,673)
Municipal Regional Permit 1,809,022 (1,809,022)(1,809,022)
Non-Streets CIP Commitments 3,253,486 (590,976)(590,976)2,662,510
Operating Carryovers 963,754 (2,014,571)(2,014,571)
Parks and Streets Contingency 201,270 201,270
Pension & OPEB 18,000,000 18,000,000
Relocate Parks Dept 500,000 500,000
Service Continuity 3,150,000 3,150,000
Dublin Blvd Extension Advance 59,500,000 3,563,913 (20,500,000)(16,936,087)42,563,913
Specific Assigned Reserves
ARPA Revenue Replacement 990,187 990,187
Climate Action Plan 2,669,424 (840,334)(840,334)1,829,090
Façade Improvement Grants 429,972 429,972
Library Tenant Improvement 1,000,000 1,000,000
HVAC Replace. & Civic Ctr Improv. (CIP)2,288,697 (1,208,273)(1,208,273)1,080,424
Pavement Management 2,000,000 2,000,000
Village Pkwy Pavement Reconstruction 20,743,613 (1,293,613)(1,293,613)19,450,000
Unassigned $43,408,415 $58,471,620 ($39,576,259) $18,895,360 $62,303,775
Unassigned-Unrealized Gains (7,039,428)(7,039,428)
Unassigned (Available)50,447,843 69,343,203
TOTAL RESERVES $290,432,952 $69,739,882 ($98,047,879) ($28,307,997) $262,124,955
Attachment 2
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