CCMIN11172020 - Laserfiche WebLink

by 1.0%and all other expenses were down 29.8%amounting to$1,304,896 She advised this leaves a fund balance of$9,028,133 standing at a 13 7% increase from the April adjustments. She noted this represents 67%of Operating Expenses nearly doubling the goal of 35% Finance Director Olson discussed the Golf Fund whose revenues dropped by 19.3% and expenses dropped by 15 3% for a net of$8,585 which is 96% below the April revisions which were anticipated due to the Shelter In Place Order She advised these were balanced out to$0 through a $192,580 Golf Fund replacement and withholding a$12,004 General Fund loan repayment. Finance Director Olson discussed the Repair and Replacement Fund and noted revenues were up $324,166 from the adjustments while net transfers increased $178,891. However, she noted expenditures were $3,894,081 (45.1%) under the April revisions leaving the fund with an ending balance of $4,039,356 (30.5% over the revised expectation). She advised the unspent expenditure dollars stay in the fund and are available for future projects, several of which were postponed in FY 2019/20. Lastly, she advised the combined ending balance of the fund is about$24,000,000. Finance Director Olson briefly presented the Retiree Medical Reserve Fund and highlighted a transfer of$22,239,402 from the fund into the Public Employees Retirement System (PERS) Rate Stabilization Fund. She advised the fund will only have the Section 115 Pension Trust Fund long-term investments and noted it stands at$510,100. Finance Director Olson detailed the next steps of issuing the Comprehensive Annual Fiscal Report (CAFR)in December which will go to City Council for review in January or February of 2021. In response to Councilmember Brown's inquiries, Finance Director Olson confirmed the lower Recreational Services Expenses are reflected in the lower Contractual Services Expenses because fewer personnel were hired to manage recreational activities. She also clarified Block Grants are listed under inter-governmental and inter-fund. In response to Councilmember Brown's inquiries, Finance Director Olson confirmed the decrease in Golf and associated revenues such as concessions prohibits repayment of the General Fund from the Golf Fund and the City must wait for the revenues to return to repay itself. In response to Councilmember Brown's inquiries, Finance Director Olson clarified$22.2M transferred to the PERS Rate Stabilization Fund was money the City always had but was sitting in a Medical Reserve. She advised there is also a $20M short-term fund in the General Fund not included because the Finance Committee can pull and add to it. She added that Other Post-Employment Benefit (OPEB) Funds are used to pay other ongoing Retiree Medical Expenses which is all that remains in the Retiree Medical Reserve Fund now because PERS has been removed from it. In response to Councilmember Narum's inquiry, Finance Director Olson clarified the City is favorable from estimates on Sales Taxes due to internet sales but they underestimated other categories for Sales Tax Revenues as well in April. In response to Councilmember Testa's inquiry, Finance Director Olson stated the Section 115 Pension Fund did not perform well in the fourth quarter of FY 2019/20 but the City did not lose any of its principal. City Manager Fialho added there is an accounting form for PERS Fund Investments included in the packet the City Council received and as of November 30, 2020, there is a total balance of over $41 million including the transfer from the Retiree Medical Fund into the Pension Trust. He reported over the year, the short-term fund performance has been even with the downturn and stands at 5.6% and the long-term earnings are 7.58%. Finance Director Olson added they have earned about $1 8 million since June 30th as the PERS Fund now stands at about$24 million. City Council Minutes Page 9 of 13 November 17,2020