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File #: 19-185    Version: 1 Name:
Type: Consent Item Status: Passed
File created: 4/3/2019 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 5/6/2019 Final action: 5/6/2019
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.
Attachments: 1. Resolution-Revenue Stabilization Fund Policy, 2. Originally proposed Revenue Stabilization Fund Policy

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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