HomeMy WebLinkAboutItem 8.1 Special Designation of General Fund Reserves for Fiscal Year 2025-26 Agenda Item 8.1
STAFF REPORT
CITY COUNCIL
Page 1 of 4
DATE: May 19, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT:
Special Designation of General Fund Reserves for Fiscal Year 2025-26
Prepared by: Jay Baksa, Finance Director and Wendy Lam, Accounting
Manager
EXECUTIVE SUMMARY:
The City Council will consider special designations of General Fund reserves for Fiscal Year
2025-26.
STAFF RECOMMENDATION:
Adopt the Resolution Authorizing a Special Designation of General Fund Committed
Reserves for Fiscal Year 2025-26 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 2025-26
Unassigned (Cash Flow) Reserve is projected at $55.3 Million after Staff’s recommendation of
special designations, which is equivalent to over five months of the proposed Fiscal Year
2026-27 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.
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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 of the use of the resources which are 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, thou gh the exact 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 May/June with the
preliminary year-end results, and again when the books are closed in the fall.
Fiscal Year 2025-26 Year-End
Based on the most recent information, Staff is projecting an operating surplus of $20.5 million
in Fiscal Year 2025-26. 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 $2.1 Million as shown
in Table 1.
Table 1: Reserve Balance Summary
FY 2024-25 Reserve Balance $325.5 Million
FY 2025-26 Projected Operating Surplus $20.5 Million
Transfers Out (CIP) Assigned/Committed
Reserves ($12.7 Million)
Transfers Out (CIP) Unassigned Cash Flow ($8.0 Million)
Contributions to ISF ($2.0 Million)
Transfers In $0.1 Million
FY 2025-26 Reserve Balance (Projected) $323.4 Million
Change ($2.1 Million)
The General Fund Reserves Summary (Attachment 2) provides a listing of reserve balances
by category. The net decrease in reserves is due primarily to the spending down of Committed
Reserves for budgeted capital improvement projects and the spending down of carry-over
reserves from the prior year.
To more accurately account for spending in Fiscal Year 2025-26, Staff has projected actual
capital project spending as of June 30, rather than assuming the entire General Fund capital
budget is spent. It should be noted that the Fiscal Year 2025-26 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.
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Reserve Designation Recommendations
This Staff Report also transmits a Resolution (Attachment 1) which confirms designations and
changes only of Committed Reserves for Fiscal Year 2025-26, as City Council approval of
Assigned Reserves is not necessary by resolution. Staff recommends the following reserve
designations as of June 30, 2026:
Committed Reserves
Village Parkway Pavement Reconstruction – Increase $5,000,000 to cover the
anticipated project funding shortfall identified from the latest engineer’s estimate. Funding will
also allow for additional green stormwater infrastructure improvements needed for alternate
compliance at Kolb Park, which is required by the federal National Pollutant Discharge
Elimination System (NPDES) permit and which regulates how pollutants are discharged into
waters of the United States.
Assigned Reserves
Lease Revenue Bond Payment – Increase $1,000,000 in accordance with the City
Council’s direction to make annual contributions to pay off of the energy efficiency bonds as
early as possible. The increase of $1,000,000 will bring this reserve balance to $10,000,000.
The earliest the bonds can be paid off is Fiscal Year 2028-29, and the total payoff amount will
be $12.9 million.
(New) Economic Development Support – Fund with $250,000 to support initiatives
that promote and enhance the City’s economic vitality, including efforts focused on supporting
local businesses and the hospitality industry. Eligible uses will include business assistance
programs and resources, economic development initiat ives, promotional campaigns, special
events, tourism and hospitality support efforts, marketing and branding activities, and other
programs designed to strengthen and promote the local economy.
STRATEGIC PLAN INITIATIVE:
Strategy 1: Economic Development, Small Business Support and Downtown Dublin
Objective A: Support the implementation of the 2024 Economic Development Strategy,
including pursuing growth industries.
Strategy 1: Economic Development, Small Business Support and Downtown Dublin
Objective D:Continue to evaluate and implement small business programs that provide
financial assistance, business development, permit processing, and support services to the
community.
Strategy 4: Inclusive and Effective Government
Objective A: Set reserves aside for major infrastructure investments which are key to the City’s
economic future.
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NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) Resolution Authorizing a Special Designation of General Fund Committed Reserves for
Fiscal Year 2025-26
2) Fiscal Year 2025-26 Yearend Projected General Fund Reserves Summary
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Attachment 1
Reso. No. XX-26, Item X.X, Adopted 05/19/2026 Page 1 of 1
RESOLUTION NO. XX – 26
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING A SPECIAL DESIGNATION OF GENERAL FUND COMMITTED RESERVES
FOR FISCAL YEAR 2025-26
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 202 6-27 and 2027-28 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 2025-26 year-end balance to the Committed
fund balance as follows:
Increase the reserve for Village Parkway Pavement Reconstruction by $5,000,000 .
BE IT FURTHER RESOLVED that any net resources remaining after special designations, and
aftermeeting the Fund Balance and Reserves Policy requirements, will be left in the Unassigned
(Available) Reserve.
PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 19th
day of May, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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Attachment 2
FISCAL 2025-26 YEAREND PROJECTED GENERAL FUND RESERVES SUMMARY
RESERVE DESCRIPTION
Actual
2024-25
(CIP) Budgeted
2025-26
(Operating)
Budgeted
2025-26
Increase
2025-26
(Projected)
Decrease
2025-26
Net Change
2025-26
Projected
2025-26
Non-Spendable $40,123 $40,123
Prepaid Expenses 40,123 40,123
Restricted $16,242,645 $0 $0 $0 $16,242,645
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
Heritage Park Maintenance 750,000 750,000
Public Facilities Advance 11,605,916 11,605,916
Section 115 Trust - Pension 2,257,730 2,257,730
Committed $197,229,405 $5,000,000 ($12,211,705)($7,211,705) $190,017,701
Contigency Reserves
Asset Contingency 17,714,064 5,000,000 (5,000,000)(5,000,000)12,714,064
Economic Stability 8,000,000 8,000,000
Fire Svcs Pension/OPEB 2,211,094 2,211,094
Parks and Streets Contingency 201,270 201,270
Pavement Management 2,000,000 2,000,000
Pension & OPEB 18,000,000 18,000,000
Public Safety Reserve 4,600,000 4,600,000
Service Continuity 3,150,000 3,150,000
Project Specific Reserves
Cultural Arts Center (CIP) - GI0120 1,402,815 1,402,815 (1,402,815)(1,402,815)
Don Biddle Park (CIP) - PK0115 675,193 675,193 (675,193)(675,193)
Downtown Public Improvement - ST0319 45,000,000 200,000 158,990 (158,990)(158,990)44,841,010
Dublin Blvd Extension Advance ST0216 71,042,736 20,228,823 (3,690,724)(3,690,724)67,352,012
Fallon Sports Park III Contingency - PK0119 51,462 51,463 (51,463)(51,463)
HVAC Replace. & Civic Ctr Improv. (CIP) - GI0122 1,812,944 732,520 (732,520)(732,520)1,080,424
Library Tenant Improvement - GI0521 1,000,000 1,000,000
Maintenance Facility (CIP) - GI0509 55,008 55,008 55,008
Village Pkwy Pavement Reconstruction - ST0323 20,312,819 11,512,819 5,000,000 (500,000)4,500,000 24,812,819
Assigned $59,336,248 $20,315,832 ($19,976,936)$338,896 $59,675,144
Accounting Adjustment Reserves
Accrued Leave 1,589,394 1,589,394
CIP Carryovers 17,186,131 19,065,832 (17,186,131)1,879,701 19,065,832
Façade Improvement Grants 429,972 429,972
Operating Carryovers 1,690,898 (1,690,898)(1,690,898)
Specific Use Reserves
Advance to Public Facility Fee 5,000,000 5,000,000
ARPA Revenue Replacement 990,187 990,187
Contribution to Public Facility Fee 10,000,000 10,000,000
Economic Development Support 250,000 250,000 250,000
Lease Revenue Bond Payoff 9,000,000 1,000,000 1,000,000 10,000,000
Relocate Parks Dept 500,000 75,000 70,000 (145,000)(145,000)355,000
Utility Undergrounding 3,500,000 3,500,000
Non-Specific Use Reserves
Climate Action Plan 2,554,518 82,257 423,895 (423,895)(423,895)2,130,623
Innovations & New Opportunity 3,316,206 1,418,339 (100,000)(100,000)3,216,206
Municipal Regional Permit 885,422 531,700 (400,000)(400,000)485,422
Non-Streets CIP Commitments 2,693,521 31,011 (31,011)(31,011)2,662,510
Unassigned $52,626,374 $32,188,640 ($27,364,106) $4,824,534 $57,450,908
Unassigned-Unrealized Gains 2,141,609 2,141,609
Unassigned (Available)50,484,765 55,309,299
TOTAL RESERVES $325,474,796 $57,504,472 ($59,552,747) ($2,048,275) $323,426,521
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Special Designation of
General Fund Reserves for
Fiscal Year 2025-26
May 19, 2026
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General Fund (GF) Overview
•Projected Year-End Results = $20.5 Million Operating Surplus
Reserve Balance Summary
FY 2024-25 Reserve Balance $325.5 Million
FY 2025-26 Projected Operating Surplus $20.5 Million
Transfers Out (CIP) Assigned/Committed
Reserves
($12.7 Million)
Transfers Out (CIP) Unassigned Cash Flow ($8.0 Million)
Contributions to ISF ($2.0 Million)
Transfers In $0.1 Million
FY 2025-26 Reserve Balance (Projected)$323.4 Million
Difference ($2.1 Million)
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Reserves Summary
•Updated Reserve Summary (Attachment 2)
•Additional Information
•CIP Budget
•Operating Budget
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Transfers Out
Amended
2025-26
Projected
2025-26 Difference
Transfer Out –
Committed/Assigned $41,996,947 $12,658,726 $29,338,222
Transfer Out -
Unassigned
$27,068,031 $8,002,200 $19,065,832
Contribution to
ISF/Other
$2,000,000 $2,000,000 $0
Total $71,064,979 $22,660,925 ($48,404,054)
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Reserve Types
•Non-Spendable –amounts that cannot be spent.
•Restricted –amounts with legal constraints placed on the use
of the resources.
•Committed –amounts used for specific purposes and must be
approved by the City Council resolution.
•Assigned –amounts used for more general purposes and does
not require approval by City Council resolution.
•Unassigned –Cashflow Reserve.
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Reserve Recommendations
•Committed Reserves
•Village Parkway Pavement Reconstruction
•Increase $5.0 Million; New Balance = $24.8 Million
•Address project funding shortfall.
•Additional green stormwater infrastructure improvements
•Required by the federal National Pollutant Discharge Elimination System (NPDES) Permit
•Assigned Reserves
•Lease Revenue Bond Payment
•Increase $1.0 Million; New Balance = $10.0 Million
•Early Bond Pay-Off in Fiscal Year 2028-29 = ~$13.0 Million
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Reserve Recommendations, 2
•Assigned Reserves, Continued
•(New) Economic Development Support Reserve
•Increase $0.25 Million; New Balance = $0.25 Million
•Focus on supporting local businesses and the hospitality industry.
•Programs designed to strengthen and promote local economy.
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Reserve Summary
•Preliminary Designation
•Final Designation in October/November
•Total Reserves = $323.4 Million
•Decrease of $2.05 Million
•$55.3 Million Unassigned Cashflow Reserve
•Increase of $4.8 Million
•5.2 months of operating expenses
•Policy calls for 2-4 months
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Staff Recommendation
•Adopt the Resolution Authorizing a Special Designation
of General Fund Committed Reserves for Fiscal Year
2025-26 and confirm changes to General Fund Assigned
Reserves.
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