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General Fund Reserve Designations During the prior fiscal year 2008 -09, City
<br /> Council authorized redirecting $3,000,000 from the CIPR back into the Temporary
<br /> Recession Reserve which now stands at $11,170,000. In addition, the 10% Reserve for
<br /> Contingencies stands at $8,320,000 after recommended actions including in this Mid
<br /> Year budget update. Over and above those two reserves, the Reserves for Carryovers
<br /> will have a balance of $2,097,089 after the recommended actions in this report. The
<br /> source of the Reserve for Carryovers was $2,512,969 in unexpended funds from the
<br /> prior fiscal year which was recommended to be placed in the Carryover Reserve to
<br /> smooth out future budgets without using other rainy day reserves.
<br /> Recommended changes to General Fund Reserve Designations affect the Reserve for
<br /> Carryovers, and the 10% Reserve for Economic Uncertainties as shown below in Table
<br /> 5. Consistent with City fiscal policy, the 10% Reserve for Economic Uncertainties is set
<br /> at 10% of the estimated revenue. Thus, as a reflection of General Fund Revenues being
<br /> adjusted from $87,332,823 to $83,246,104, the reserve is being decreased by
<br /> $400,000. The recommended adjustment to the Reserve for Carryovers is a net
<br /> reduction of $1,301,805 which is comprised of the net of the following previously
<br /> approved City Council actions made with the year -end budget report:
<br /> Purchase orders contracts not completed by
<br /> year -end FY 2009 and carried over into current year $699,804
<br /> Unspent Contingency for energy projects $205,554
<br /> Unexpended funds from prior year $415,879
<br /> Grant revenue carryover (19,433)
<br /> $1,301,805
<br /> Table 5. Recommended Chan es to General Fund Reserve Desi nations
<br /> Additional
<br /> Beginning Recommended Ending
<br /> General Fund Fund Balance Fund Changes to Fund
<br /> Reserve Designations Balance Reserves Balance
<br /> Reserve for Carryovers 3,398,894 (1,301,805) 2,097,089
<br /> 10% Reserve for Economic
<br /> U ncertainties 8,720,000 (400,000) 8,320,000
<br /> Capital Projects Reserve
<br /> Reserve for Golf Debt Service 2,000,000 2,000,000
<br /> Tem porary Recession Reserve 11,170,000 11,170,000
<br /> Total 25,288,894 (1,701,805) 23,587,089
<br /> General Fund Transfers
<br /> Estimated benefit costs are charged to each funded position as a percentage of payroll
<br /> and deposited into a single Internal Service fund, the Employee Benefit Fund, where all
<br /> benefit costs are paid. When actual benefit costs are lower than the estimated
<br /> budgeted cost any surplus is then redistributed back to the various funds that made the
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