REPORT TO THE CITY COUNCIL
December 7, 2017
FROM: LEE BRAND, Mayor
Office of the Mayor & City Manager
SUBJECT
Title
***RESOLUTION - Amending Reserve Management Act (Subject to Mayor's veto)
Body
RECOMMENDATION
It is recommended that Council approve a resolution adopting various changes to the Reserve Management Act.
EXECUTIVE SUMMARY
The Reserve Management Act (Act) was adopted to set City policy regarding the establishment and funding of the City's reserve funds. While the Act has provided valuable structure to the City's finances, it is silent on the treatment of asset sale or special windfall proceeds. Thus, it is proposed that the Reserve Management Act be modified to permit the creation of a reserve fund that will house any asset sale or special windfall proceeds over $15,000 which would typically be deposited in the General Fund. Those proceeds will be amortized over a period of not less than five years and no longer than ten years to be used as a funding stream for operational and capital uses that would otherwise be funded by the General Fund.
BACKGROUND
The Act was adopted by Council on March 31, 2011, to establish City policy regarding the creation, funding, and use of various reserve funds. The Act was amended in May, 2015, to reflect organizational changes that had occurred since the Act's adoption.
It has now become evident that the Act needs policy to address the treatment of asset sale or special windfall proceeds, which is not otherwise addressed therein. In order to clarify the existing policy, it is proposed that the Act be amended to create an Asset Sale/Special Windfall Reserve Fund. The new reserve fund will be, with certain exceptions enumerated in the Act, the repository of asset sale or special judicial/administrative windfall proceeds in excess of $15,000 that would otherwise be deposited into the General Fund. Funds deposited in this reserve will be allocated over a five to ten year period to provide a ...
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