Report Prepared by: Venus Rodriguez, Finance Officer
Title
SUBJECT: Adoption of Resolution Regarding a Revenue Stabilization Fund Policy
REPORT IN BRIEF
Considers adopting a Resolution approving the Revenue Stabilization Fund Policy, which identifies the purpose, method of resource accumulation, maximum accumulation amounts and permissive uses for the Revenue Stabilization Fund.
RECOMMENDATION
City Council - Adopt a motion adopting Resolution 2019-15, A Resolution of the City Council of the City of Merced, California, adopting Revenue Stabilization 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 2018-19 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 Economic Development Opportunity Fund was established to provide the opportunity to take advantage of business development and/or job creation for significant capital investment.
On April 2, 2018, two policies were presented to the City Council for consideration. City Council adopted Resolution 2018-20, A ...
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