RESOLUTION NO. 2024-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON,
APPROVING THE AMENDMENT TO THE CITY OF PATTERSON GENERAL
FUND EMERGENCY CONTINGENCY COMMITMENT OF FUND BALANCE
FOR THE GENERAL FUND.
WHEREAS, the Governmental Accounting Standards Board GASB) has issued its Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions with the intent of improving financial reporting by providing fund balance categories that will be more easily understood; and
WHEREAS, the City Council of the City of Patterson has considered the amendment to the "Fund Balance Policy for the General Fund" which outlines the policy and procedures enacted to accurately categorize and report fund balance in the General Fund; and
WHEREAS, the "Fund Balance Policy for the General Fund" provides that the City Council may commit General Fund balance for specific purposes by taking formal action and these committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same formal action taken to establish the commitment; and
WHEREAS, The policy is the City Council’s formal commitment of an amount of fund balance to be set aside specifically for emergency contingencies previously defined as a state or federal state of emergency or declaration of a local emergency as defined in Patterson Municipal Code Section 2.36.060. The amount was originally set at $3,564,292 for Fiscal Year 2011/12, and has increased to $12,024,541 for Fiscal Year 2024/25 and represents an equivalent to 5 months of regular operating expenses per the original policy; and
WHEREAS, the amended "Fund Balance Policy for the General Fund" states the intent of the City Council is to include other extenuating circumstances for use of the emergency contingency reserve in order to stabilize the city in the event of an economic downturn, shortfalls of revenues, or unanticipated or unfunded expenditures through interfund loans with repayment back to the Emergency Contingency Fund, including interest based on Local Agency Investment Fund (LAIF) Earnings; and WHEREAS, the City Council has determined that the Amendment to the General Fund Emergency Contingency Commitment of General Fund balance should be established and approved at $12,024,541 for Fiscal Year 2024/25 as recommended by the City Manager and Finance Director.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Patterson as follows:
SECTION 1. The City Council hereby establishes and approves the General Fund Emergency Contingency Commitment of General Fund balance of $12,024,541 for Fiscal Year 2024/25.
SECTION 2. The City Council has determined that the specific purposes for which the General Fund Emergency Contingency Commitment maybe used are the declaration of a state or federal state of emergency or a local emergency as defined by Patterson Municipal Code Section 2.36.060 and have amended the uses to include other extenuating circumstances for use of the emergency contingency reserve in order to stabilize the city in the event of an economic downturn, shortfalls of revenues, or unanticipated expenditures through interfund loans with repayment back to the Emergency Contingency Fund, including interest. These uses may only be changed by approval of a subsequent resolution.
SECTION 3. The City Council hereby confirms that in any fiscal year in which recurring sources exceed recurring uses in the General Fund, the amount of the General Fund Emergency Contingency Commitment of General Fund balance will be increased up to an amount equal to five (5) months of regular General Fund operating uses.
The foregoing resolution was introduced at a regular meeting of the City Council of the City of Patterson, held on the 16th day of July 2024 by , who moved its adoption, which motion was duly seconded by and the resolution adopted by the following roll call vote:
AYES:
NOES:
EXCUSED:
APPROVED:
___________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
_______________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 16th day of July 2024, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.
DATED:
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City Clerk of the City of Patterson