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CC - Approval of Excluding $14 Million in Land Sale Proceeds Received During Fiscal Year 2014/2015 from the General Fund Surplus Allocation Prescribed in City Council Policy 2014-CP003.
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Contact Person/Dept: Jeff Muir/Finance
Phone Number: (310)253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/22/15)
Department Approval: Jeff Muir, Chief Financial Officer (10/21/15)
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RECOMMENDATION
Staff recommends the City Council approve excluding $14 million in land sale proceeds received during Fiscal Year 2014/2015 from the General Fund surplus allocation formula prescribed in City Council Policy 2014-CP003.
BACKGROUND
On June 23, 2014, the City Council adopted Resolution 2014-R056, which approved and adopted City Council Policy 2014-CP003 entitled Finance - Financial Policies (Policy). This was a comprehensive update of prior financial policies, as recommended by the Finance Advisory Committee. The Financial Reserves Policy section of the Policy includes a description of three types of reserves within the General Fund, which are considered 'Committed fund balance' under Governmental Accounting Standards Board Statement No. 54:
1. Contingency Reserve: The Contingency Reserve shall have a target balance of thirty percent (30%) of General Fund "Operating Budget" as originally adopted. Operating Budget for this purpose shall include current expenditure appropriations and shall exclude Capital Improvement Projects and Transfers Out. Appropriation and/or access to these funds are reserved for emergency situations only.
2. Facilities Planning Reserve: Th...
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