HomeMy WebLinkAbout4.12 Special Designation of General Fund Reserves for Fiscal Year 2020-21STAFF REPORT
CITY COUNCIL
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Agenda Item 4.12
DATE:June 15, 2021
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Special Designation of General Fund Reserves for Fiscal Year 2020-21
Prepared by: Lisa Hisatomi, Director of Administrative Services
EXECUTIVE SUMMARY:
In accordance with the City's Fund Balance and Reserves Policy, the City Council will consider
special designations of General Fund reserves for Fiscal Year 2020-21.
STAFF RECOMMENDATION:
Adopt the Resolution Authorizing a Special Designation of General Fund Reserves for Fiscal Year
2020-21.
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 2020-21 Unassigned
(Cash Flow) Reserve is projected at $56,507,654, which is equivalent to eight months of the Fiscal
Year 2021-22 General Fund 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 of the use of the resources which are either (a)
externally imposed by creditors, contributors, or laws and regulations of other agencies, or (b)
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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 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.
Unassigned - used by General Fund for residual classification of positive funds.
Recommended Reserve Designations for Fiscal Year 2020-21
The General Fund Reserves Summary (Attachment 1) provides a listing of reserve balances by
category. While the Fiscal Year 2020-21 year-end balances are not yet final until the City closes its
financial books, Staff can make reasonable assumptions about estimated reserve balances at this
point.
Many of the reserve changes are due to the spending down of Committed Reserves for budgeted
capital improvement project expenses during Fiscal Year 2020-21 and the spending down of
carry-over reserves from the prior year. Other shifts are related to year-end accounting policies.
This Staff Report also transmits a Resolution (Attachment 1) which confirms designations only of
Committed Reserves for Fiscal Year 2020-21, as City Council approval of Assigned Reserves is not
necessary by resolution. However, Staff seeks City Council direction on each of the following
recommended designations:
Committed Reserves:
Advance to Public Facilities Fee – Increase $2,500,000
In June 2020, the City Council approved the creation of a new reserve and set aside $7.5
million or 75% of the estimated total project cost, to advance the construction of the Wallis
Ranch Community Park, Jordan Ranch Neighborhood Square, and Library Tenant
Improvements projects, due to insufficient cash flow in Public Facilities Fee program for the
2020-2025 CIP. Staff now recommends setting aside an additional $2.5 million, for a total of
$10 million to fund the total estimated cost for the CIPs.
Downtown Public Improvement Reserve – Increase $1,545,375
In accordance with the City Council’s Strategy #1: Implement the City’s Adopted Preferred
Vision for Downtown Dublin, Staff recommends the addition of $1,545,375 million to this
reserve. With this adjustment, the total reserve will be $10 million.
Assigned Reserves:
Village Parkway Pavement Reconstruction Reserve - Increase $1,500,000
In June 2020, the City Council approved the creation of a new reserve and set aside $5 million
for the project, which is about 50% of the estimated project cost. Staff recommends adding
$1.5 million to this reserve. With this adjustment, the total reserve will be $6.5 million.
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STRATEGIC PLAN INITIATIVE:
Strategy 2: Explore New City Revenue Streams for Long Term Financial Stability
Objective D: Continue to maintain strong fiscal policies.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) Resolution Authorizing a Special Designation of General Fund Reserves for Fiscal Year 2020-21
2) Fiscal Year 2020-21 General Fund Reserves
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Attachment 1
Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 1 of 1
RESOLUTION NO. XX – 21
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING A SPECIAL DESIGNATION OF GENERAL FUND RESERVES FOR
FISCAL YEAR 2020-21
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 2021-22 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 2020-21 year-end
balance to the Committed fund balance as follows:
Increase the reserve for Advance to Public Facilities Fee by $2,500,000
Increase the reserve for Downtown Public Improvement by $1,545,375
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 15th day of June 2021 by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________
Mayor
ATTEST:
___________________
City Clerk
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Attachment 2GENERAL FUND RESERVES
RESERVE DESCRIPTION
Actual
2019-20
Increase
2020-21
Decrease
2020-21
Net
Change
Projected
2020-21
Non-Spendable $13,061 $13,061
Prepaid Expenses 13,061 13,061
Restricted $1,938,000 $441,000 $441,000 $2,379,000
Cemetery Endowment 60,000 60,000
Developer Contr - Downtown 1,049,000 441,000 441,000 1,490,000
Developer Contr - Heritage Pk 19,000 19,000
Developer Contr - Nature Pk 60,000 60,000
Heritage Park Maintenance 750,000 750,000
Committed $57,828,474 $4,455,375 ($12,300,387)($7,845,012)$49,983,462
Advance to Public Facilities Fee 7,500,000 2,500,000 (999,835)1,500,165 9,000,165
Downtown Public Impr 8,454,625 1,545,375 1,545,375 10,000,000
Economic Development 126,359 (126,359)(126,359)0
Economic Stability 8,000,000 8,000,000
Emergency Communications 532,113 (1,736)(1,736)530,377
Fire Svcs Pension/OPEB 5,324,225 5,324,225
Innovations & New Opport 1,065,471 (170,973)(170,973)894,498
One-Time Initiative - Capital 4,993,150 (1,543,503)(1,543,503)3,449,647
One-Time Initiative - Operating 503,860 503,860
Public Safety Reserve 2,000,000 2,000,000
Specific Committed Reserves
Cemetery Expansion 1,447,764 (1,447,764)(1,447,764)
Contribution to Public Facilities Fee 6,000,000 6,000,000
Cultural Arts Center 4,539,197 (4,539,197)(4,539,197)
Donlon Way Acquisition 410,000 (410,000)
Don Biddle Park 1,500,000 (1,500,000)(1,500,000)
Dublin Sports Ground 1,502,671 (1,502,671)(1,502,671)
Fallon Sports Park 3 Contingency 3,110,500 3,110,500
Maintenance Facility 58,350 (58,350)(58,350)(0)
Utility Undergrounding 1,170,190 1,170,190
Assigned $64,390,838 $1,500,000 ($4,674,038)($3,174,038)$61,216,800
Accrued Leave 1,044,730 1,044,730
Catastrophic Loss 17,702,316 17,702,316
CIP Carryovers 3,502,246 3,502,246
Fiscally Responsible Adj 325,000 325,000
Municipal Regional Permit 2,282,905 (177,522)(177,522)2,105,383
Non-Streets CIP Commitments 2,462,100 2,462,100
Operating Carryovers 2,110,190 2,110,190
Parks and Streets Contingency 226,227 (24,957)(24,957)201,270
Pension & OPEB 15,000,000 15,000,000
Pension Rate Stabilization Plan 2,000,000 (2,000,000)(2,000,000)
Relocate Parks Dept 250,000 250,000
Service Continuity 3,150,000 3,150,000
Specific Assigned Reserves
Climate Action Plan 3,000,000 3,000,000
Contribution to ISF 1,500,000 1,500,000
Façade Improvement Grants 374,157 374,157
HVAC Replacement & Civic Ctr Improv 4,202,041 (2,212,634)(2,212,634)1,989,407
Public Safety Complex 258,925 (258,925)(258,925)
Village Pkwy Pavemt Recon 5,000,000 1,500,000 1,500,000 6,500,000
Unassigned $66,478,851 $16,974,426 ($18,492,383)($1,517,957)$64,960,894
Unassigned-Unrealized Gains 8,453,240 8,453,240
Unassigned (Available)58,025,611 (410,000)56,507,654
TOTAL RESERVES $190,649,224 $23,370,801 ($35,466,808)($12,096,008)$178,553,217
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