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replacement of equipment or the payment in the future of employee retirement, medical
<br /> benefits and unused vacation. In accordance with the City's adopted financial policies
<br /> and the City's General Plan, the City recognizes costs as they accrue, and sets money
<br /> aside to fund the future expenditures, rather than allowing these costs to accumulate
<br /> and become a future financial burden.
<br /> Retirees Medical Reserve Fund. As shown in Table 10 below, the actual revenues to
<br /> the Retiree Medical Reserve Fund are $1.1 million less than budgeted. The amended
<br /> budget for Retiree Medical Reserves was based on the City's OPEB actuarial study
<br /> issued in 2015. The 2017 OPEB actuarial study recommended reduced annual OPEB
<br /> contributions of$1 million to the City's OPEB trust fund. The FY 21016/17 actual
<br /> revenues and expenditures reflect the 2017 OPEB actuarial study recommendations.
<br /> Table 10. Retirees Medical Reserve Funds -Amended Budget vs. Actual
<br /> Year-end
<br /> -Amended Recommended
<br /> Retirees Medical Rese;rve Fund Budget Actual $Variance `Actual
<br /> beginning Fund Balance $19,289,792 $19,289,792 $0 $19,289,792
<br /> Plus Revenues 6,013,000 4,918,889 (1,094,111) 4,918,889
<br /> Less Net Transfers 63,890 215,890 152,000 215,890
<br /> Less Expenditures (5,150,890) (4,355,789) 795,101 (4,355,789)
<br /> Ending Fund Balance 20,215,792 20,068,782 (147,010) 20,068,782
<br /> Chang a in'Fundtalance ' ° 926 000 3$70;9901,,,, ,,,,,.($147,1:1110)?.` � 78 990 ''
<br /> Replacement/Renovation Funds. In accordance with the City's financial policies and
<br /> the General Plan, the City maintains various Replacement/Renovation Funds. The
<br /> purpose of these funds is to provide ongoing replacement of City equipment, vehicles,
<br /> traffic signals, streetlights, and to make major repairs/renovations to City facilities,
<br /> parks, and medians, in order to extend their useful lives.
<br /> Table 11 presents the activity in FY 2016/17 in these funds. As described in Table 11,
<br /> the Repair and Replacement funds spent $5 million less than anticipated in FY 2016/17.
<br /> All of this $5 million will remain in the Repair and Replacement funds to be expended on
<br /> projects and equipment replacements in the future.
<br /> Page 10 of 12
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