Title
Recommendation to Allocate General Fund Projected Available Fund Balance In Excess of 20% Reserve Requirement (Approximately $14.5 million). (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Recommendation to Allocate General Fund Projected Available Fund Balance In Excess of 20% Reserve Requirement
BACKGROUND
During the City's multiple budget workshops held in spring 2015, the members of the City Council directed staff to evaluate the size of the General Fund available fund balance and propose best uses of the excess funds. Staff was further directed to assess the need and estimate cost of additional support in the following areas:
* Alameda Point buildings
* Deferred building maintenance
* Carnegie (former Library) building
* Abandoned vessels in the Estuary
* Emergency water supply
* Citywide Transit and Transportation Demand Management Plans
* Health benefit for part-time employees
* Economic uncertainty/Contingency
* PERS Smoothing/OPEB funding for Existing Retirees
Upon further review, and after analysis by each City Department, the following items were added to the list for consideration:
* Estuary Park funding shortfall
* Emergency park tree maintenance
* Tidal Canal Funding
* Emergency Operations Center/Fire Station #3 Contingency
DISCUSSION
As of June 30, 2016, the General Fund Adopted budget is projected to have ending available fund balance of $30.8 million or 38% of total General Fund expenditures (Exhibit 1). With the exception of maintaining a 20% General Fund operating reserve, there are no specific policies that direct how to allocate funds in excess of the established reserve. Executive staff analyzed many options and applied a combination of best and past practices, such as using one-time funds for one-time expenses (not for annual on-going operations), to develop the following recommendations.
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