City of Richmond, California
Policy Framework to Appropriate Unspent Funds.
1. Overview
The purpose of this policy document is to provide a framework to appropriate p rior year General Fund Unspent Funds. Unspent Funds are defined as:
“N
et revenue in excess of expenditures in the General Fund at the end of a fiscal year after covering the annual operating expenditures and transfers out to other Non-General funds for projects and programs.”
C
ity staff present s quarterly budget reports that include b udget-to-actual variance explanations. At the end of each fiscal year, City staff presents an estimated final quarterly budget review (Q4 Budget Review). The Q4 Budget Review includes potential sources of the Unspent Funds in the General Fund, which can range from certain revenue streams being above budget and/or certain expenditure line items being below budget.
Th
is policy document provides a framework to appropriate the prior year Unspent Funds.
City staff will provide initial recommendations based on the policy guidelines discussed in the following paragraphs.
2. Policy Guidelines
Unspent Funds shall be appropriated to projects or non- recurring programs following these principles in the order listed below:
1. City mandated policies
Unspent Funds shall be appropriated per the City Council’s policy directions such as, meeting the minimum target reserve level, contribution to the Section 115 trust accounts for Pension and Other Post Employment Benefits (OPEB) and any other policy direction that may have been adopted by the City Council.
2. E
xisting capital or other projects with funding gaps.
Unspent Funds shall be appropriated to projects that staff recommend as a priority based on the following criteria:
a. Project is currently in progress with an identified timeline b. Project is associated with grant funding and has an identified funding gap
3. U
nspent Funds shall be appropriated to Projects that are aligned with the City Council Strategic Goals and Priorities:
a. Improve Quality of Housing, Especially Low -Income and Reduce Homelessness
b. Increase Revenue and Improve Economic Development
c. Improve the Quality of Life and Community Health/Improve Social Determinants of Health
d. Improve Public Safety
e. Strengthen the City’s Internal Infrastructure and Processes f. Address Shoreline Issues and Ecological Sustainability Attachment 5 – Unspent Funds Appropriations Framework Policy 1 City of Richmond, California
Policy Framework to Appropriate Unspent Funds.
4. Unfunded Capital Projects List.
Unspent Funds shall be appropriated to projects that have a clear scope of work and are identified as unfunded.
5. New Capital Projects
Unspent funds shall be appropriated to new projects that are prioritized by the City Council with a clear scope of work.
6. Unfunded Department requests.
Unspent funds shall be appropriated to one-time new funding requests that did not receive funding during the current fiscal year Budget Process.
The process of selecting Capital Projects and or one-time appropriations for Unspent Funds shall consider equity between the six Council Districts to the extent possible, while acknowledging that each district has unique needs and a perfect distribution of funds among all the six districts may not be practical.
Attachment 5 – Unspent Funds Appropriations Framework Policy 2