HomeMy WebLinkAbout2019-11-12; City Council; ; Approval to designate $9,131,095 of the city's unassigned fund balance in the General Fund as of June 30, 2019, for economic uncertainty.~ CITY COUNCIL
~ Staff Report
Meeting Date:
To:
From:
Staff Contact:
Nov. 12,2019
Mayor and City Council
Scott Chadwick, City Manager
Roxanne Muhlmeister, Finance Manager
roxanne.muhlmeister@carlsbadca.gov or 760-602-2417
CAReview ~
Subject: Approval to designate $9,131,095 ofthe city's unassigned fund balance in
the General Fund as of June 30, 2019, for economic uncertainty.
Recommended Action
Adopt a Resolution designating $9,131,095 of the city's unassigned fund balance in the General
Fund as of June 30, 2019, for economic uncertainty.
Executive Summary
On Oct. 22, 2019, staff presented the listing of budget carryforward requests and appropriation
of funds to fiscal year 2019-20 for City Council approval. Along with the listing of carryforward
requests, city staff recommended $9,131,095 of the city's unassigned fund balance as of June
30, 2019, in the General Fund be designated and set aside to start the accumulation of funds
for a citywide Enterprise Resource Planning (ERP) system. The City Council approved the list of
carryforward requests, and requested that $9,131,095 be added to the current designation for
economic uncertainty, rather than an ERP system.
Discussion
Council Policy Statement No. 87, General Fund Surplus Policy (Policy No. 87), approved by the
City Council on Aug. 27, 2019, established a new policy for the appropriation of surplus funds
resulting from actual revenues exceeding actual expenditures, plus any unspent and
unencumbered expenditure budget for a given fiscal year. The request for the appropriation of
unspent and unencumbered expenditure budget is referred to as a budget carryforward.
At the Oct. 22, 2019 City Council meeting, the City Council approved the listing of budget
General Fund carryforward requests in the amount of $4,331,244 to fiscal year 2019-20. City
staff also recommended $9,131,095 of the city's unassigned fund balance in the General Fund
as of June 30, 2019, be designated and set aside to start the accumulation of funds for a
citywide Enterprise Resource Planning (ERP) system. The City Council requested that the
$9,131,095 be designated and set aside for economic uncertainty, rather than an ERP system.
The City Council directed staff to return at a future City Council meeting to present the options
for an ERP system, once the solutions have been identified and costs have been estimated.
Nov. 12, 2019 Item #3 Page 1 of 3
Fiscal Analysis
Once approved, $9,131,095 will be added to the previously designated $10,000,000 for
economic uncertainty in the General Fund. The economic uncertainty designation was created
to assist the city during any downturn in the economy that would negatively affect the city's
General Fund revenue streams. The City Council may change this designation in the future by
Resolution if another need arises.
GENERAL FUND ECONOMIC UNCERTAINTY DESIGNATION
Current amount designated for economic uncertainty $10,000,000
Additional amount to be designated for economic uncertainty 9,131,095
TOTAL AMOUNT DESIGNATED FOR ECONOMIC UNCERTAINTY · $19,131,095
Next Steps
The amount of $9,131,095 from the city's unassigned fund balance in the General Fund as of
June 30, 2019, will be added to the current $10,000,000 balance designated for economic
uncertainty in the General Fund.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical change
in the environment, or a reasonable foreseeable indirect physical change in the environment,
and therefore does not require environmental review.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing
at least 72 hours prior to the scheduled meeting date.
Exhibits
1. City Council Resolution.
Nov. 12, 2019 Item #3 Page 2 of 3
RESOLUTION NO. 2019-222
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DESIGNATING $9,131,095 OF THE CITY'S UNASSIGNED
FUND BALANCE IN THE GENERAL FUND AS OF JUNE 30, 2019, FOR
ECONOMIC UNCERTAINTY.
WHEREAS, the City Council of the City of Carlsbad, California approved Council Policy
Statement No. 87, General Fund Surplus Policy (Policy No. 87) on Aug. 27, 2019; and
WHEREAS, Policy No. 87 established a policy for the appropriation of surplus funds
resulting from General Fund actual revenues exceeding total actual expenditures, plus any
unspent and unencumbered expenditures budgeted for a given fiscal year; and
WHEREAS, per Policy No. 87, the City Council must approve the carryforward of any
unspent and unencumbered budget for a particular item over $100,000; and
WHEREAS, per Policy No. 87, at the Oct. 22,2019, City Council meeting, the City Council
approved carryforward requests in the amount of $4,331,244; and
WHEREAS, at the Oct. 22, 2019, City Council meeting, staff requested to designate
$9,131,095 from the city's unassigned General Fund balance as of June 30, 2019, to begin the
accumulation of funds needed for the future purchase and implementation of a citywide
enterprise resource planning (ERP) system; and
WHEREAS, at the Oct. 22, 2019, City Council meeting, the City Council requested that
$9,131,095 from the city's unassigned General Fund balance as of June 30, 2019, be designated
for economic uncertainty and not for a citywide ERP system.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California,
as follows:
1. That the above recitations are true and correct.
2. That the amount of $9,131,095 from the city's unassigned fund balance in the
General Fund as of June 30, 2019, will be added to the current $10,000,000
balance designated for economic uncertainty in the General Fund.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 12th day of November 2019, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
(SEAL)
Nov. 12, 2019 Item #3 Page 3 of 3