Report Prepared by: Venus Rodriguez, Finance Officer
Title
SUBJECT: Revenue Stabilization Fund Policy and Economic Development Opportunity Fund Policy
REPORT IN BRIEF
Consider adopting the Revenue Stabilization Fund Policy and Economic Development Opportunity Fund Policy.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2018-19, A Resolution of the City Council of the City of Merced, California, adopting Revenue Stabilization Fund Policy; and
B. Adopting Resolution 2018-20, A Resolution of the City Council of the city of Merced, California, adopting Economic Development Opportunity Fund Policy.
Body
ALTERNATIVES
1. Adopt as recommended by staff: or
2. Refer back to staff with specific direction
AUTHORITY
Merced Municipal Code Section 3.16.120 Administration of funds
CITY COUNCIL PRIORITIES
As provided for in the 2017-18 Adopted Budget
DISCUSSION
During the Fiscal Year 2016-2017 budget process the Revenue Stabilization Fund and the Economic Development Opportunity Fund were established. The intention in establishing these separate funds was to develop a City Council approved policy that would identify the purpose, how resources would accumulate, the maximum amounts to accumulate, and when the funds could be used.
The Revenue Stabilization Fund was established to have funds available to mitigate unanticipated General Fund revenue shortfalls or to provide revenue for emergency circumstances such as a natural disaster. This is in addition to the city's goal of maintaining the unassigned portion of the unrestricted General Fund balance at a minimum of the average of two months of revenue and expenditures as recommended by the Government Finance Officers Association (GFOA). The proposed policy states resources will accumulate up to a maximum of $20,000,000. Resources will accumulate from the General Fund in amounts determined by the City Council or during the budget submission process. Per the proposed policy, the funds can b...
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