DATE: NOVEMBER 1, 2022
DEPARTMENT: ADMINISTRATION
FINANCE
FROM: STEVEN S. CARRIGAN, CITY MANAGER
BY: MARK ROBERTS, FINANCE DIRECTOR
JIM PIA, ASSISTANT CITY MANAGER
TITLE: PROJECTS IDENTIFIED FOR AVAILABLE FUND BALANCE
RECOMMENDED MOTION:
Approve a Resolution 1) allocating up to $10 million dollars from the remaining combined FY 2022 available fund balance in the general funds for priority projects in need of funding, 2) authorizing the City Manager to determine to which fund(s) the projects will be appropriated, and 3) designating allocations for the projects as committed fund balance until spent.
BACKGROUND:
In January of this year, the Director of Finance identified accrued revenue of just over $20 million not previously included in the calculation of the City’s balance carried over from the previous fiscal year to the current fiscal year. In April 2022, the Council directed a portion of the balance carried over be allocated to augment the City’s reserves, including increasing contingency reserves to twelve percent (12%) of budgeted general fund operating expenditures. After this action, approximately $18 million in unreserved cash, now referred to as available fund balance, remained. On May 10, Council then directed allocation of $8.1 million dollars to build a recreation center in City Council District 5, leaving $10 million available for City Council discussion.
The City Manager worked with all Departments to identify vital City projects that are only partially funded, unfunded all together, or new needs that have been surfaced. The resulting attached list identifies staff’s recommendation of priority projects. The list was presented to the City’s Finance Committee on October 4, 2022, prior to this report to Council seeking final consideration.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Any Council-determined allocation could support the City Council Strategic Plan in these areas:
Infrastructure and Environmental Sustainability
Public Safety
Effective and culturally responsive Government
Youth and seniors
FISCAL AND SUSTAINABILITY IMPACT:
This action would dedicate up to $10 million dollars from the combined FY 2022 available fund balance in the general funds for identified projects in need of funding.
ATTACHMENTS:
Resolution
PowerPoint of Available Fund Project list
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION OF THE SALINAS CITY COUNCIL AUTHORIZING THE ALLOCATION OF $10 MILLION DOLLARS FROM THE AVAILABLE FUND BALANCE TO PROJECTS CHOSEN BY COUNCIL AT THE COUNCIL MEETING OF NOVEMBER 1, 2022 WHEREAS, the City of Salinas has a total of $10 Million identified in its Available Fund Balance; and WHEREAS, City staff has identified priority projects at the Council meeting of November 1, 2022, for potential use of these available funds; and WHEREAS, the City Council has determined that these expenditures from the Available Fund Balance will assist efforts to fund vital projects for our Salinas community, residents, and businesses.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that after analyzing the various options for the available fund balance, the expenditure plan of up to $10 million dollars for these projects is hereby approved; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF SALINAS that the City Manager is authorized to designate to which fund(s) the projects will be appropriated; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF SALINAS that allocations for the projects shall be designated as committed fund balance until spent.
PASSED AND APPROVED this 1st day of November 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
____________________________________ Kimbley Craig, Mayor ATTEST:
______________________________
Patricia M. Barajas, City Clerk
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