RES 96032 - Laserfiche WebLink

The reserve began the year with a balance orS1.7 million. However, during 1995-96, Council authorized the transfer of $100,000 from this reserve to establish the Golf Course Ftmd and to provide initial funding to hire a project manager. Should Council decide to proceed with the design phase of the Happy Valley Golf Course in the coming months, at least another $600,000 of the remaining $1.6 million reserve will be needed. There is also the possibility in the future that staff will recommend utilizing the balance of the reserve for an initial contributed capital reserve to be utilized if needed in the starrap years of the golf come, to ensure that the General Fund is not riseally impacted by any revenue shortfalls from the golf course. Therefore, staff is recommending now (and will most likely be recommending at the year end review) that no other (non-golf) appropriations be made from the $1.6 million until further decisions are made regarding the golf course. SUMMARY OF RECOMMENDED REVISED GENERAL FUND BUDGET Net recommended adjustments to General Fund revenue projections reflect a $1.8 million increase due primarily to building and public works fee revenues, interest income, and a one-time PERS credit. Staff is recommending that net expenditure appropriations be increased by $76,000; reflecting the use of salary savings ($1.1 million) for overtime, equipment and services primarily related to the development fees collected. Staff is recommending that $1,000,000 (approximately the amount of the one-time PERS adjustment) be transferred to the Workers Comp Fund and Retirees' Medical Fund to make up for previous funding shortfalls. The closeout of the Proposition 4 Fund balance (about $280) to the General Fund is also recommended. With these recommended changes to the General Fund 1995-96 Budget, a net positive balance of $670,000 is projected. Staff is recommending that it be left ~ at least until the end of the first year review of the 1995-96/1996-97 budget is presented to Council in June. At that time, staff will likely recommend that some of these funds be carried over to the 1996-97 budget to help fund costs associated with the building/public works fees collected. Future sales tax and property tax updates at that time may also influence any recommendation staff makes, in particular if they negatively impact projections for the 1996-97 fiscal year. WATER AND SEWER OPERATING FUNDS Water Maintenance and Operating (M & O) Fund Only minor adjustments are being recommended to the Water Division budget, as reflected in Appendix D (page 19). Actual ending fund balance last June 30, 1995 was $1.6 million. Projected ending fund balance for the year ending June 30, 1996 is $1.84 million. Optimally, the Fund should maintain a reserve of approximately 30% or $2 million. This reserve is necessary for cash flow, contingency, and to improve bond ratings, which will in turn lower borrowing costs. SR 96:120 9