Laserfiche WebLink
RESERVES <br /> <br />As a result of the staff recommended budget for 1993-94, total projected General Fund <br />reserves at June 30, 1994 are $5,978,383. This represents a decrease of $2,710,761. <br />The breakdown of these recommended reserves is as follows: <br /> <br /> Reserve for Economic Uncertainties $3,400,000 <br /> Capital Projects Reserve (Fire Station 4)750,000 <br /> Temporary Recession Reserve 2,107,383 <br /> $6,257,383 <br /> <br />The Reserve for Economic Uncertainties is intended to be used only for a natural disaster <br />or temporary loss in a revenue source so that services to the community can be <br />uninterrupted. Staff recommends that $105,098 be added to this reserve to maintain it <br />at a 10 % level. <br /> <br />The amount set aside in the Capital Projects Reserve reflects the projected one-time <br />dollars received in 1992-93 from the Stoneridge debt transaction. Staff tentatively <br />recommends that this amount be set aside for the construction of Fire Station 4. <br /> <br />Staff recommends that the balance of $2,107,383 remain in the Temporary Recession <br />Reserve as we expect the State to again next year reduce the City's revenue as a pan of <br />the budget process. Furthermore, staff fully expects that the City will be transferring <br />revenue or have increased expenditures as a result of the County's budget decisions <br />during this fiscal year. This balance is derived as follows: <br /> <br /> 1991-92 Ending Balance $2,134,623 <br /> 1992 -93 Projected Additions 1,571,819 <br /> 1993 -94 Projected Operational D ericit (772,961 ) <br /> 1993-94 Projected Operational Deficit <br /> Due to State Transfer *(721,000) <br /> 1993-94 Transfer to Economic Reserve (105,098) <br /> $2,107,383 <br /> <br /> *The total City loss is $1 million, which is reduced in the current year by <br /> a one-time transfer of State transportation money. <br /> <br />Sewer Operations and Maintenance (O&M) Fund reserves will increase by $172,000 to <br />$884,612. As part of the rate review scheduled for January 1994, staff will be <br />recommending that we continue to phase in a sewer capital replacement accrual charge <br />to ensure funding for the ongoing replacement of sewer lines, pump stations, etc. <br /> <br />SR 93:332 3 <br /> <br /> <br />