City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 02/14/2023
Subject: General Fund Transfers for 2022-2023
RECOMMENDED ACTION:
This resolution approves the financial transfers for Fiscal Year 2022-23, as discussed at the January 10, 2023 City Council Workshop.
DISCUSSION:
At the January 2023 City Council workshop, the City Council directed staff to prepare a resolution to make a number of transfers, which are summarized below:
Street & Road Reserve Transfer: The City Council policy (Resolution 15-23) requires that 33 percent of any General Fund surplus is transferred to the Street & Road Reserve Fund with the purpose of providing a new funding source dedicated to reconstructing the streets and roads in Ripon that have exceeded their useful life.
Sick Leave Contingency Fund Transfer: The City Council has established certain contingency funds that allows the City Council to continue to fund operations of the City during a short-term economic downturn. Each fund has a certain funding criterion.
Currently, the Sick Leave Contingency Fund does not meet the established criteria. As part of the Fiscal Year 2022-23 transfers, $45,000 is to be transferred to this fund from the General Fund surplus.
Parks & Recreation General Capital Fund Transfer #1: The City Council has established a Parks & Recreation General Capital Fund to replace existing parks and recreation equipment. Funds from the General Fund surplus ($561,517) are to be transferred to the Parks & Recreation General Capital Fund to be used to reconstruct the Community Center Parking Lot and Baseball Fields.
Parks & Recreation General Capital Fund Transfer #2: A second transfer is to be made to the Parks & Recreation General Capital Fund. The source of the funds is the AB1600 Parks & Recreation Capital Funds. Initially, when the funds used for the construction of the Mistlin Sports Park Indoor Volleyball Complex parking lot were allocated, they were allocated to the Parks & Recreation General Capital Fund rather than the AB1600 Parks & Recreation Fund. Since this construction is new construction and listed as an AB1600 project, this transfer will essentially “pay back” the Parks & Recreation General Capital Fund – the amount of this transfer is $1.2 million.
Additionally, the revenue from the Rage Volleyball lease is currently being transferred to the Parks & Recreation General Capital Fund. This will continue to provide revenue to maintain and repair parks and recreation facilities in the City of Ripon.
RESOLUTION NO. 23-11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON APPROVING FISCAL YEAR 2022-23 FINANCIAL
TRANSFERS
WHEREAS, City of Ripon has completed the Fiscal Year 2021-22 financial audit and determined a general fund surplus was available for certain uses; and WHEREAS, previous hereto, the City of Ripon has approved Resolution 15-23 adopting a Street and Road reserve policy that requires a minimum of 33 percent of general fund surplus to be set aside for the funding of reconstructing streets and roads in Ripon that have exceeded their useful life; and
WHEREAS, previous hereto, the City of Ripon has approved Resolution 18-51 establishing various liability contingency funds and criteria for Sick Leave Contingency, CalPERS Reserve, Healthcare Deductible Reimbursement Reserve, Workers Compensation/Liability Self Insured Retention Reserve, and Litigation/Natural Disaster Reserve.
The fund category balances and criteria is reviewed by City Council each year as part of the budget process and any necessary transfers may be made; and WHEREAS, the City Council is desirous of spending Fiscal Year 2021-2022 general fund surplus dollars on moving forward with the Community Center Improvements Project; and WHEREAS, previous hereto, the City of Ripon has approved Resolution 19-22 approving an agreement with RAGE volleyball for the operation of the indoor sports facility at Mistlin Sports Park, directing Staff to complete the parking area adjacent to the indoor sports facility using Parks and Recreation General Capital Funds, and use lease revenue to reimburse the Parks and Recreation General Capital Fund. As of June 30, 2022, the outstanding balance to be reimbursed is $1,559,920.80 and the AB1600 Parks and Recreation Capital Fund has a balance of $1,202,796.19. The City Council of the City of Ripon is desirous of transferring $1,200,000.00 of the AB1600 Parks and Recreation Capital Fund to the Parks and Recreation General Capital Fund; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ripon that the City of Ripon does hereby approve the transfer of funds from the General Fund to the following funds:
Street and Road Reserve Fund: $424,328
Sick Leave Contingency Fund: $45,000
Department Capital Fund: $561,517
NOW, BE IF FURTHER RESOLVED by the City Council of the City of Ripon that the City of Ripon does hereby approve the transfer of $1,200,000 from AB1600 Parks and Recreation Fund to the Parks & Recreation General Capital Fund and continue to transfer RAGE Volleyball lease revenue to the Parks & Recreation General Capital Fund for future capital replacement of parks and recreation facilities.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 14th day of February, 2023, by the following vote:
RESULT: ADOPTED BY CONSENT VOTE [UNANIMOUS]
MOVER: Daniel de Graaf, Council Member
SECONDER:Gary Barton, Council Member
AYES: Restuccia, Zuber, de Graaf, Barton, Uecker
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
MICHAEL RESTUCCIA, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk