CITY COUNCIL STAFF REPORT
Meeting: January 22, 2025
Subject
Study Session for the use of Committed Future Use Reserve one-time funds.
Recommended Action
Provide staff direction on the future allocation of how the City should allocate one-time funds from the future use reserve.
Reasons for Recommendation
Background
At the November 19, 2024, City Council meeting, staff proposed three different options for allocating $74.5 million in one-time funds resulting from the uncommitting of the Sales Tax Repayment Reserve. A copy of this staff report is included as Attachment A.
City Council approved an alternative approach, allocating $10.0 million to a one-time Additional Discretionary Payment to CalPERS to address the City’s Unfunded Accrued Liability retirement costs and establishing the Committed Future Use Reserve for the remaining $64.5 million. Additionally, Council directed staff to conduct a study session in January 2025 to explore potential uses for the remaining one-time funds.
Detailed reductions implemented in the FY 2023-24 and FY 2024-25 Adopted Budgets are included in the staff report as Attachments B and C.
Next Steps
Following the study session, staff will incorporate Council’s direction into the FY 2024-25 Mid-Year Financial Report and/or the FY 2025-26 Proposed Budget.
Sustainability Impact
No sustainability impact.
Fiscal Impact
There are no fiscal impacts as part of this study session.
City Work Program (CWP) Item:
No.
CWP Item Description:
Not applicable.
Council Goal:
Public Engagement and Transparency
Sustainability and Fiscal Strategy
Environmental Quality Act
Not applicable.
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Prepared by: Toni Oasay-Anderson, Senior Management Analyst Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – November 19, 2024 Staff Report and Allocation Plan
B – FY 2023-24 Budget Reductions
C – FY 2024-25 Service Level Reductions