Policy Number: PSE0003983
RLI Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
RLIPack® FOR DESIGN PROFESSIONALS
EXCESS LIABILITY ENHANCEMENT
SCHEDULE OF COVERAGES ADDRESSED BY THIS ENDORSEMENT
A. General Aggregate Limit — Per Project Or Per Location B. Additional Insured — Primary/Non-contributory
C. Waiver Of Transfer Of Rights Of Recovery Against Others To Us This endorsement modifies insurance provided under the following
COMMERCIAL EXCESS LIABILITY COVERAGE FORM
A. General Aggregate Limit — Per Project Or Per
Location
Paragraph 2.a. of C. Limits of Liability of SECTION
I - INSURING AGREEMENT is deleted and
replaced by the following:
a. The limit of liability stated in the Declarations as general aggregate is the most we will pay during
each policy period for all ultimate net loss,
except ultimate net loss because of:
(1) injury and damage included in the products -
completed operations hazard or;
(2) any coverage included in underlying
insurance to which no underlying aggregate
applies.
The general aggregate applies separately to
each of your "projects" away from premises
owned by or occupied by you or to each of your
locations owned by or occupied by you.
"Projects" mean an area away from premises
owned by or rented to you at which you are
performing operations pursuant to a contract or
agreement. For the purposes of determining the
applicable aggregate limit of insurance, each
"project" at the same "location" shall be
considered a single "project".
For the purposes of this provision, "location"
means
(1) premises involving the same or connecting
lots;
(2) premises where connection is interrupted
only by a street, roadway, waterway or right-
of-way of a railroad; or
B.
C.
(3) premises where operations are performed in
sections, stages or phases as a continuation
of the same contract or agreement, even if
the premises do not involve connecting lots.
Additional Insured — Primary/Non-contributory
Paragraph K. Other Insurance of SECTION IV -
CONDITIONS is deleted and replaced by the
following:
K. Other Insurance
If other insurance, whether collectible or not, is
available to the insured covering a loss also
covered by this policy, the insurance afforded by
this policy shall be in excess of, and shall not
contribute with, such other insurance. However,
if the underlying insurance provides coverage
to an additional insured on a primary basis, or a
primary and non-contributory basis, this insur-
ance shall be available to such additional
insured on an excess basis over the underlying
insurance. We will not share with other
insurance which covers such additional insured
as a named insured.
Waiver Of Transfer Of Rights Of Recovery
Against Others To Us
Paragraph L. Subrogation of SECTION IV -
CONDITIONS is deleted and replaced by the
following:
PPU 304 06 10 Page 1 of 2
L. Subrogation
In the event of any payment under this policy, the
insured must notify us of any of the insured's rights
of recovery against any person or organization. We
shall be subrogated to all such rights. The
insured shall execute and deliver instruments
and papers and do whatever else is necessary to
secure such rights. The insured shall do nothing
after loss to prejudice such rights. However we
waive any rights of recovery we may have
against any person or organization if the
underlying insurance also waives such rights.
Any amount recovered through subrogation or
otherwise shall be apportioned in the inverse order
of payment of the claim or claims involved to the
extent of actual payment thereof by all interests. The
expenses of all such recoveries and proceedings in
connection therewith shall be apportioned in the
ratio of respective recoveries. With respect to
proceedings conducted solely by us, if there is no
recovery, we will bear the expense thereof. If there
is a recovery, we shall be reimbursed in full from
such recovery for the amount of all expenses
incurred by us before apportionment of such
recovery as herein provided.
ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.
PPU 304 06 10
WORKERS' COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 06 (Ed. 04-84)
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT —CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.)
You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.
The additional premium for this endorsement shall be % of the California workers' compensation premium otherwise due on such remuneration.
Schedule
Person or Organization
All persons or organizations that are party to a
contract that requires you to obtain this
agreement, provided you executed the contract
before a loss
Job Description
Job performed for any person or organization that you
have agreed with in a written contract to provide this
agreement.
This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective 11/20/2021 Policy No. PSW0004454
Insured BOA ARCHITECTURE Insurance Company RLI Insurance Company Endorsement No.
Placentia Cit Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: CHIEF OF POLICE
DATE: OCTOBER 18, 2022
SUBJECT: NORTH ORANGE COUNTY LAW ENFORCEMENT PARTNERSHIP FOR GUN
BUYBACK PROGRAM
FISCAL
IMPACT: EXPENSE: $ 300,000
REVENUE: $ 300,000 Supervisor Doug Chaffee's Fourth District Discretionary Funding
SUMMARY:
The City of Placentia in conjunction with the Orange County District Attorney's Office, Anaheim, Brea, Buena Park, Fullerton, La Habra, and Orange Police Departments are collaboratively hosting an anonymous and voluntary only Gun Buyback Program (GBP) on October 22, 2022 within the City of Placentia.
This anonymous and voluntary GBP is an opportunity for those who have unwanted and operable firearms and are looking for a way to safely and responsibly dispose of them with "no questions asked."
The City of Placentia has been awarded these grant funds by Supervisor Doug Chaffee's Fourth District Discretionary Funding in the amount of $300,000, to be used by December 31, 2022. The purpose of this report is to advise the City Council of the details of the GBP schedule to occur on October 22, 2022 and to properly appropriate these grant funds in the City's existing fiscal year budget for expenditure.
RECOMMENDATION:
It is recommended that City Council take the following action:
1. Receive and file the report on the City of Placentia's Gun Buyback Program to be conducted on Saturday, October 22, 2022, and
2. Approve Resolution No. R-2022-68, A Resolution of the City Council of the City of Placentia, California, authorizing a budget amendment in Fiscal Year 2022-2023 in compliance with City Charter of the City of Placentia 1206 and 1209 pertaining to appropriations for actual expenditures.
1.i.
Oct 18, 2022
City Council Agenda
October 18, 2022
DISCUSSION:
This anonymous and voluntary only Gun Buyback Program (GBP) is an opportunity for those whom have unwanted and operable firearms and are looking for a way to safely and responsibly dispose of them. Officers often encounter criminals possessing firearms, and many times they learn of these same firearms being stolen from said criminal's family members and through residential burglaries. This event provides a service to persons whom may already want to dispose of firearms, either because they are no longer comfortable possessing them, concerned of a loved one or others coming into possession of firearms and/or may not know where to go to dispose of firearms.
While there is no way to accurately predict what crimes would be prevented through this event, it is aimed at reducing the potential for violent crimes, negligent firearm discharges, the use of firearms in domestic violence situations, suicide, and gun theft.
The GBP will be coordinated by the Placentia Police Department and located at 166 East La Jolla Street, Placentia, from 9:00 a.m. to 1:00 p.m. The attached flyer is being utilized by the north Orange County law enforcement partnership on this project, which includes the following seven policing agencies of Placentia, Anaheim, Fullerton, La Habra, Buena Park, Brea and Orange.
Participants are required to transport their firearms unloaded in a bag or case, and in the trunk of their vehicle. Further, participants will be required to remain with their vehicle at all times and not touch any weapons, so that an officer can remove the gun from the vehicle. The drive -up event is limited to three firearms per person and no walk-ups are allowed. In order to best ensure anonymity, no identification will be required, and participants are limited to three firearms to be submitted.
The City of Placentia has been awarded grant funds by Supervisor Doug Chaffee's Fourth District Discretionary Funding to host the event in the amount of $300,000. The City of Placentia will use these funds to offer a gas card or Amazon gift card for submitted firearms, including:
a) $200 per operable handgun, shotgun, ghost gun and/or rifle; b) $400 per operable assault weapon as classified by the state of California. BB and pellet guns are not accepted as part of the program. In addition, the County will reimburse the City and all north Orange County policing agencies for all personnel costs associated with the event.
FISCAL IMPACT:
The City has been awarded $300,000 from Supervisor Doug Chaffee's Fourth District Discretionary Funding. The GBP costs can include actual costs to the City to conduct the event, gift cards to be provided per firearm submitted, and associated staffing costs for the event. The Subrecipient Grant Agreement with the County of Orange provides that Placentia's entire program be completed by December 31, 2022.
City Council Agenda
October 18, 2022
Submitted by:
Chris Anderson
Lieutenant
Reviewed and approved:
Jenner Lampman
Finance Director
Attachments:
1. Gun Buyback Event Informational Flyer
2. Resolution No. R-2022-68
Reviewed and approved:
Brad Butt
Chief of Police
Reviewed and approved:
Damien R. Arrula
City Administrator
GET A GAS CARD
OR AMAZON GIFT
CARD WHEN YOU
TURN IN YOUR
FIREARM
I100% ANONYMOUS,
NO ID REQUIRED,
NO QUESTIONS ASKED
$200 for operable handguns,
shotguns, ghost guns and rifles
$400 for operable assault weapons
as classified in the state of California
No BB or pellet guns will be
accepted
Oct. 22, 2022
166 East La Jolla Street
Placentia, CA. 92870
9:00 AM to 1:00 PM.
***Transport your firearms UNLOADED in a bag, box
or case, and in the trunk of your vehicle. Remain in
your vehicle at all times and DO NOT TOUCH ANY
WEAPONS. An officer will remove the gun from the
vehicle. If the trunk or rear hatch can not be opened
remotely by the driver, the driver will hand the officer the key. The drive -up event is limited to three fire-
arms per person and no walk-ups allowed***
FOR MORE INFORMATION ABOUT THE EVENT, PLEASE CONTACT PLACENTIA PD LIEUTENANT C.
ANDERSON (714) 993-8156 OR BY EMAIL [email protected] FOR MEDIA RELATIONS, PLEASE CONTACT PLACENTIA PD PI❑ SERGEANT J. CONNELL (714) 993-8153 OR BY EMAIL [email protected]
FUNDED BY
SUPERVISOR
Doug Chaffee
COUNTY OF ORANGE,
SUPERVISORIAL DISTRICT 4
RESOLUTION NO. R-2022-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA AUTHORIZING A BUDGET
AMENDMENT IN FISCAL YEAR 2022-23 IN COMPLIANCE
WITH CITY CHARTER OF THE CITY OF PLACENTIA §§ 1206
AND 1209 PERTAINING TO APPROPRIATIONS FOR
ACTUAL EXPENDITURES.
A. Recitals.
(i). The adopted budget for the 2022-23 Fiscal Year sets out estimated appropriations for City expenses throughout the year.
(ii). From time to time the adopted budget must be adjusted when precise expenditures are finally determined or when estimated expenditures exceed projected costs allocated.
(iii). City Charter of the City of Placentia § 1206 authorizes the City Council to amend or supplement the budget by motion adopted by the affirmative votes of at least three members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenues not included in the budget. All other legal prerequisites to the adoption of this Resolution have occurred.
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. In all respects as set forth in the Recitals, Part A., of this Resolution.
2. The adopted budget for Fiscal Year 2022-23, Resolution No. R-2022-68 is hereby amended for the new appropriation to the account below:
Fund
Description
Department
GL Account
Amount
Type
Special Revenue
Funds
American Rescue
Plan Act, State and
Local Fiscal
Recovery Funds
Miscellaneous Grants
503040
$300,000.00
Grant
Revenue
General Fund
Expenditures for
Gun Buyback
Procram
Public Safety — Police
Police Administration
103040-6301
$300,000.00
Expense
3. The Mayor shall sign this resolution, and the City Clerk shall attest and certify to the passage and adoption thereof.
Resolution R-2022-68
PASSED, ADOPTED AND APPROVED THIS 18th DAY OF OCTOBER 2022.
Rhonda Shader, Mayor
ATTEST:
Robert McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 18th day of October 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
Robert McKinnell, City Clerk
APPROVED AS TO FORM:
Christian Bettenhausen, City Attorney
Resolution R-2022-68
TO:
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF FINANCE
DATE: OCTOBER 18, 2022
CITY COUNCIL
Placentia Cit Council
AGENDA REPORT
SUBJECT: AMENDMENT TO THE GENERAL FUND RESERVE POLICY NO. 460 FISCAL
IMPACT: NONE
SUMMARY:
On September 12, 2017, the City Council adopted Resolution No. R-2017-53 establishing its General Fund Reserve Policy ("Reserve Policy) requiring the City to seek and maintain a contingency reserve goal of 17% of budgeted operating expenditures in the General Fund. The purpose of the contingency reserve was to provide sufficient funds to continue operations should there be any known or unknown contingencies. On June 5, 2018, the City Council adopted Resolution No. R-2018-34 amending the Reserve Policy to include guidelines for appropriating new ongoing or one-time unrestricted revenues to various reserves to be used for specific purposes. In recognition of the City's continued progress in the area of overall financial health and sustainability, on January 26, 2021 the City Council adopted Resolution No. R-2021-05 increasing the contingency reserve goal to 25% of budgeted operating expenditures.
The proposed amended Reserve Policy reflects the clarification of terms and definitions to assist in the compliance with the policy.
RECOMMENDATION:
It is recommended that the City Council take the following action:
Adopt Resolution No. R-2022-66, a Resolution of the City Council of the City of Placentia, California, approving and adopting amendments to the City of Placentia Policy and Procedure Manual, Reserve Policy.
DISCUSSION:
Financial policies are essential for ensuring sound financial management practices and providing a strategic, long-term approach to financial management. The Government Finance Officers' Association (GFOA) recognizes that financial policies are an essential part of financial management and developed several recommended best practices to provide guidance on the
3.a.
Oct 18, 2022
City Council Agenda
October 18, 2022
development of sound financial policies. One of GFOA's recommendations is that every government establish and formally adopt a General Fund reserve policy with a minimum unrestricted fund balance of no less than two (2) months (17%) of operating revenues or expenditures and that financial policies be reviewed every 1-3 years.
The City's current Reserve Policy, which was last reviewed in January 2021, requires the City to maintain a minimum unrestricted fund balance of no less than three (3) months (25%) of operating expenditures, which exceeds the GFOA recommendation. As a result of the direction provided by the City Council and the implementation of Measure U, the City's financial position has continued to improve. In recognition of and in alignment with the City's continued increase in financial health, the City currently has an estimated reserve balance of 47% for fiscal year 2022-23.
The Measure U Citizen's Oversight Committee has met to discuss Policy No. 460 and is recommending the proposed changes noted in Attachment 2, Proposed Amended General Fund Reserve Policy No. 460. Approving the amended reserve policy will ensure a fiscally prudent and consistent application of taxpayer funds, which in turn will continue to improve the City's overall fiscal health.
FISCAL IMPACT:
There is no fiscal impact for this action.
Prepared by:
Jenn fer Lampman
Director of Finance
Damien R. Arrula
City Administrator
Reviewed and approved by:
Attachments:
1. Resolution No. R-2022-66 Amending the General Fund Reserve Policy
2. Proposed Amended General Fund Reserve Policy No. 460
3. PowerPoint Presentation
RESOLUTION NO. R-2022-66
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PLACENTIA, CALIFORNIA APPROVING AND
ADOPTING AMENDMENTS TO THE CITY OF
PLACENTIA POLICY AND PROCEDURE MANUAL
A. Recitals
(i) The City of Placentia heretofore has adopted policies and procedures for the guidance of all elected and appointed officials, officers and employees of the City as well as to establish policies and procedures for the implementation of provisions of the Placentia Municipal Code and provisions of state and federal law. (ii) The City Administrator has caused the Policy and Procedure Manual of the City of Placentia to be reviewed and recommended for revision to set forth practices and procedures with regard to General Fund Reserves. The Finance Department has proposed amendments to Policy No. 460, General Fund Reserve Policy. (iii) A full, true and correct copy of the Policy No. 460, to be incorporated into the Policy and Procedure Manual of the City of Placentia, is attached hereto and by this reference incorporated herein.
B. Resolution
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. In all respects as set forth in the Recitals, Part A., of this Resolution.
2. That Policy No. 460 hereby is amended and hereby incorporated into the Policy and Procedure Manual of the City of Placentia.
APPROVED and ADOPTED this 18th day of October 2022.
Rhonda Shader, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
Resolution R-2022-xx ATTACHMENT 1
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 18th day of October 2022 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution R-2022-xx ATTACHMENT 1
INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 460
GENERAL FUND RESERVE POLICY
INTRODUCTION
Fiscal stability is an important goal for all cities. Sound financial management includes the practice and discipline of maintaining adequate reserve funds for known and unknown contingencies. Such contingencies include but are not limited to:
• Cash flow requirements
• Economic uncertainties including downturns in the local, state or national economy
• Local emergencies and natural disasters
• Loss of major revenue source
• Unanticipated operating or capital expenditures
• Uninsured losses
• Future capital projects
• Vehicle and equipment replacement
• Capital asset and infrastructure repair and replacement The establishment of prudent financial reserves is important to ensure the long- term financial health of the City.
PURPOSE
Establish guidelines for a General Fund Reserve Policy to maintain a stable revenue structure while providing for the orderly provision of services to the citizens of Placentia, as well as assist with maintaining a positive credit rating and meet seasonal cash flow shortfalls, economic downturns, or a local disaster.
DEFINITIONS
1. Contingency Reserve Balance — an amount held in the General Fund for known and unknown contingencies. Contingency Reserve funds consist of funds that are classified either unassigned fund balance or committed reserves.
2. Contingency Reserve Balance Goal ("Reserve Goal") — is expressed as a percentage of the budgeted annual General Fund Operating Expenditures and is established by a majority vote of the City Council. (The Reserve Goal history is found in Appendix A.)
3. General Fund Balance Categories — Fund balances should be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which the amounts in those funds can be spent.
POLICY MANUAL
GENERAL FUND RESERVE POLICY
Draft revision Sep 2022
INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 460
a Nonspendable fund balance — The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
b. Restricted Fund Balance —Fund Balance should be reported as restricted when constraints placed on the use of the recourses are either:
i. Externally imposed by creditors, grantors, contributors, or laws, or regulations of other governments; or
ii. Imposed by law through constitutional provision or enabling legislations
c. Committed fund balance — Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision making authority should be reported as committed fund balance. Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action (resolution or ordinance) it employed to previously commit those amounts.
d. Assigned fund balance — Amounts that are constrained by the government's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance.
e. Unassigned fund balance — Unassigned fund balance is the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund.
4. New Ongoing Revenues — a new general tax, an increase in the rate of an existing tax, a new lease of City property, or a new, clearly identifiable unrestricted revenue source not previously included in the City's budget at the time of adoption of this policy; which generates at least $100,000 per year in revenue; and is expected to continue for dleast a period of 20 years.
5. New One -Time Revenues — defined as either: (1) unrestricted revenue from new one-time events (for example, property sales, etc.) of at least $100,000 (excluding recapturing of lost funds); (2) a new, clearly identifiable unrestricted revenue source of at least $100,000 per year and not previously included in the City's budget at the time of adoption of this policy, which is expected to continue for a period of less than 20 years; or (3) unanticipated positive General Fund budget variances of any amount (i.e., positive changes in General Fund financial position greater than final budgeted amounts)
POLICY MANUAL
GENERAL FUND RESERVE POLICY
Draft revision Sep 2022
INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 460
POLICY
It shall be the policy of the City Council of the City of Placentia:
1. To establish a Reserve Goal for the General Fund. The Reserve Goal shall be reviewed by the City Council at least once per year during the normal city budgeting cycle to determine if the Reserve Goal needs to be redefined.
The City Council may also adjust the Reserve Goal as needed at times other than the budget cycle. Such a change, however, must be made as a regular agenda item and cannot be made as part of the Consent Calendar. a. The Contingency Reserve Balance shall Leavailable only as a temporary revenue source.
b. Any use of the Contingency Reserve Balance shall require the approval of the City Council by means of approved appropriations.
Any such appropriation must be approved as a regular agenda item and not as part of the consent calendar.
c. Whenever the Contingency Reserve Balance falls below the Reserve Goal, the City Council shall place a priority on restoring the Contingency Reserve Balance.
d. If the City Council approves the use of any portion of the Contingency Reserve Balance which results in the Contingency Reserve Balance falling below the Reserve Goal level, the City Council shall approve at the same time a plan to replenish the Contingency Reserve Balance to the Reserve Goal within a reasonable time period. e. Each fiscal year as a part of the budget process, a multi -year pro - forma of the General Fund identifying the annual adjustment to the Contingency Reserve Balance shall be presented to members of the community for an independent citizen review and later presented to City Council. The pro forma forecast shall be for a period of no less than five (5) years beyond the current fiscal year being budgeted and the "Forecast" and shall form the basis of determining whether the expected level of General Fund's Contingency Reserve Balance satisfies the Reserve Goal for the entire duration of the Forecast.
2. To commit certain new, unrestricted revenues to various reserves to be used for specific purposes.
a. New Ongoing Revenues Allocation
i. The allocation of New Ongoing Revenues to various purposes shall be determined based upon whether the forecasted level of the Contingency Reserve Balance exceeds the Reserve
Goal as determined by the Forecast performed in Section 1.e herein.
ii. If the forecasted Contingency Reserve Balance falls below the
POLICY MANUAL
GENERAL FUND RESERVE POLICY
Draft revision Sep 2022
INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 460
Reserve Goal, New Ongoing Revenues will be allocated as follows, until such time as the General Fund Contingency Reserve Balance satisfies the Reserve Goal.
Infrastructure, Vehicles, and Equipment
40%
Post -Employment Benefits Sustainability
10%
Employee Recruitment and Retention
30%
General Fund Contingency Reserve
20%
ii i. If the current level of the Contingency Reserve Balance meets or exceeds the Reserve Goal, revenues generated from New Ongoing Revenues will be allocated as follows:
Infrastructure, Vehicles, and Equipment
50%
Post -Employment Benefits Sustainability
10%
Employee Recruitment and Retention
(including additional staff)
30%
General Fund Contingency Reserve
10%
iv. New Ongoing Revenues allocated to the above categories may be appropriated for ongoing or one-time expenditures. b. New One -Time Revenues Allocation
i. The allocation of New Ongoing Revenues to various purposes shall be determined based upon whether the forecasted level of the Contingency Reserve Balance exceeds the Reserve
Goal as determined by the Forecast performed in Section 1.e herein.
POLICY MANUAL
GENERAL FUND RESERVE POLICY
Draft revision Sep 2022
INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 460
iii. If the forecasted Contingency Reserve Balance falls below the Reserve Goal, New One -Time Revenues will be allocated as follows, until such timeas the Contingency Reserve Balance satisfies the Reserve Goal:
iv.
Infrastructure, Vehicles, and Equipment
40%
Post -Employment Benefits Sustainability
10%
General Fund Contingency Reserve
50%
v. If the current level of the Contingency Reserve Balance meets or exceeds the Reserve Goal, revenues generated from New One -Time Revenues will be allocated as follows:
Infrastructure, Vehicles, and
Equipment
80%
Post -Employment Benefits
Sustainability
20%
vi. New One -Time Revenues allocated to the above categories may only be spent on one-time expenditures.
c. Accounting and Reporting of New Ongoing Revenues
i. New Ongoing Revenues and New One -Time Revenues shall be included as General Fund revenues, and all reserve
accounts specified in this section shall be reported as committed fund balances of the General Fund in the City's Comprehensive Annual Financial Report.
ii. New Ongoing Revenues shall be accounted for using a dedicated special revenue fund.
iii. Reports for each new ongoing special revenue fund shall be prepared at the time of budget adoption, as part of the mid- year budget review and at fiscal year-end that demonstrate compliance with this policy and indicate the percentages of each reserve account balance that can be spent on one-time expenditures and ongoing expenditures.
POLICY MANUAL
GENERAL FUND RESERVE POLICY
Draft revision Sep 2022
INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 460
3. To ensure that future General Fund budgets promote fiscal sustainability a. All General Fund budgets should be structurally balanced, such that ongoing revenues equal or exceed ongoing expenditures.
b. The Contingency Reserve Balance and One -Time revenues should be used only for one-time expenditures. Ongoing expenditures should be funded only from ongoing revenues.
A mid -year budget review shall be conducted each year to verify projections and recommend adjustments as necessary so that the budget remains balanced. c. Conservative budget planning shall be utilized to identify potential problems and solutions.
d. Careful, five- and ten-year budget projections shall also be developed and updated to keep the budget in check and to determine continued fiscal sustainability.
4. Any future bond covenants shall be written to be compliant with this Policy.
This policy shall be a policy of the City Council of the City of Placentia and is subject to change by resolution based on a 4/5ths affirmative vote of the Council.
POLICY MANUAL
GENERAL FUND RESERVE POLICY
Draft revision Sep 2022
INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 460
Appendix A: General Fund Contingency Reserve Goal History Date of City Council Adoption
General Fund Reserve Goal
June 5, 2018
17%
January 26, 2021
25%
POLICY MANUAL
GENERAL FUND RESERVE POLICY
Draft revision Sep 2022
Proposed Modifications to
Interdepartmental Policy 460
General Fund Reserve Policy
October 18, 2022
Background
• Measure U Citizen's Oversight Committee suggested the need to investigate possible modifications to Policy 460 as part of their annual review
— City Council agreed to consider suggested modifications after Oversight Committee completed a policy review
• Original Policy 460 (adopted June 5, 2018) established a General Fund Reserve Policy
— Established reserve level goal of 17% of annual operating budget expenditures
• Subsequently raised to 25% (January 26, 2022)
— Established revenue allocation guidelines for new, ongoing as well as new, one-time sources of revenue
• Measure U revenue was first and most significant revenue source covered by the policy
• Allocation amounts depend upon whether or not council approved reserve goal is satisfied
— Outlined proper uses of reserve funds
— Revisions of the policy require 4/5ths vote of City Council
Motivation to Review and Possibly
Modify Policy 460
• Modifications represent clarifications/enhancements identified after having operated under Policy 460 for four years
— Reflect the fact reserve procedures have "matured"
• Existing policy was written to cover establishment and building of reserves • Existing policy lacks clarity regarding procedures once reserve goal is reached, but events cause reserve level to fall back below goal
— Existing policy did not require formal review or oversight to confirm reserve goal was not only met in the short -run, but also met in the long -run — Existing policy did not place a requirement on the City Council to periodically review the reserve goal level for adequacy and possible revision
Proposed Modifications to Policy 460
• Move references to a specific reserve level goal to an appendix — Eliminate the need to modify the policy with every city council reserve goal change
— Support the capture of the history of reserve goal changes and levels in a single location
• Formalize a yearly process for reviewing the status of the reserve level vs. the council specified goal
— Require a long range reserve level forecast be generated to include a citizen oversight requirement
— Generation of long-range reserve level forecast would be part of budget process
• Clarify the language regarding allocation of funds depending upon satisfaction of the reserve level goal
• Adjust the allocation levels depending upon reserve level status to reflect discretionary nature of allocation categories
Proposed Modifications to Revenue
Allocation Requirements — New, Ongoing Revenues
(Reserve Goal Satisfied)
Current Allocation
Infrastructure, Vehicles, and
Equipment
Post -Employment Benefits
Sustainability
Employee Retention and
Recruitment (including
additional staff)
General Fund Contingency
Reserve
Proposed Allocation
60% Infrastructure, Vehicles, and
Equipment
10% Post -Employment Benefits 10%
Sustainability
30% Employee Retention and 30%
Recruitment (including
additional staff)
0% General Fund Contingency 10%
Reserve
• This is the current reserve level condition
• Oversight Committee suggests some funds continue to flow into reserves to support budget growth
• This is allocation waterfall that controls Measure U revenues
Proposed Modifications to Revenue
Allocation Requirements — New, Ongoing Revenues
(Reserve Goal Satisfied)
Current Allocation
Infrastructure, Vehicles, and
Equipment
Post -Employment Benefits
Sustainability Reserve
Employee Retention and
Recruitment (including
additional staff)
General Fund Contingency
Reserve
Suggested Allocation
50% Infrastructure, Vehicles, and
Equipment
10% Post -Employment Benefits 10%
Sustainability Reserve
20% Employee Retention and 30%
Recruitment (including
additional staff)
20% General Fund Contingency 20%
Reserve
• With the reserve goal level achieved, this condition would occur if reserves were utilized or if expenditures grew without a corresponding revenue surplus to fund reserves • Suggested allocation reflects desire to not "take -away" presently allocated employee retention funding
Recommended Actions
• Approve proposed modifications to Policy 460
— Requires a 4/5ths vote of council to approve
• Establish July 1, 2023 as the effective date of
implementation
— Consistent with the start of a new budget -year
— Eliminates the need for mid -year budget
adjustments
Questions