HomeMy WebLinkAbout2024-06-18; City Council; Resolution 2024-147RESOLUTION NO. 2024-147
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DESIGNATING $17,500,000 OF THE CITY'S UNASSIGNED FUND
BALANCE IN THE GENERAL FUND AS OF JULY 1, 2024, FOR ASSET
REPLACEMENT
WHEREAS, the City Council of the City of Carlsbad, California, commits to maintaining its large
machinery and equipment inventory;
WHEREAS, the city's General Fund is respon sible for approximately $60 million worth of
machinery and equipment with useful lives ranging from 5 to 20 years.
WHEREAS, the city's General Fund is projected to need $17,500,000 over the next ten fiscal
years to replace machinery and equipment that are expected to reach the end of their respective useful
lives;
WHEREAS, with the establishment of the Asset Replacement Reserve and a $17,500,000
contribution, as of June 30, 2025, the General Fund Reserve would have a projected reserve ratio of
55% and $36 million in excess of City Council Policy No. 74 -General Fund Reserve's requirement of
40% or $95 million;
WHEREAS, the Asset Replacement Reserve will be evaluated and adjusted on an annual basis
based upon the General Fund's most recent 10-year asset replacement schedule;
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 $17,500,000 from the city's unassigned fund balance in the General
Fund as of July 1, 2024, will be moved to the Asset Replacement Reserve in the General
Fund.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of
Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the
Carlsbad Public Financing Authority, the City of Carlsbad Community Development Commission, and
the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment Agency
held on the 18th day of June, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
, Mayor