The URL can be used to link to this page

Home My WebLink AboutCC RESO 2019-1340 RESOLUTION NO. 2019 - 134 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE AMENDMENT OF CITY COUNCIL POLICY # 201, "MAINTENANCE OF RESERVES," TO ESTABLISH AN IRREVOCABLE OTHER POST -EMPLOYMENT ENT BENEFITS (OPEB) TRUST RESERVE BE IT RESOLVED by the City Council of the City of National City that National City Council Policy No. 201, entitled "Maintenance of Reserves," as amended a copy of which is attached hereto marked as Attachment "A" and by this reference is incorporated herein as though set forth in full is hereby approved. PASSED and ADOPTED this 17th day f Septemb Alejandra ATTEST: fen Michael I..'AIIa, City Clerk APPROVED AS TO FORM: A i I orris ones S),i0ttorney or Passed and adopted by the Council of the City of National City, California, on September 17, 2019 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis, Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: ALEJANDR S TEL0-SOLIS Mayor of the City of National City, California City Clerk of the City of National City, California By I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2019-134 of the City of National City, California, passed and adopted by the Council of said City on September 17, 2019. By: City Clerk of the City of National City, California Deputy CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Maintenance of Reserve Funds POLICY #201 ADOPTED: June 26,1 MEl l l: September 17, 2019 It'ity-nose The City will establish reserves to tren t e . its ability to withstand unexpected financial emergencies such as those that may result from national disasters, revenue shortfalls, or unanticipated expenditures of a non -recurring nature and to accumulate funds for large-scale purchases, Policy The City Ma ,ager is charged with the responsibility of accumulating and maintaining the City's reserves at the following target levels: • GENES FUND CONTINGENCY RESERVE: an amount equal to between twenty-five percent (25%) and fifty percent (50%) of a single year's budgeted General Fund operating expenditures. "Operating expenditures" shall be defined as all expenditures, except those of a capital nature, plus operating subsidies provided to the Library Fund, Parks Fund, Nutrition Fund, and Personnel Compensation Fund. • GENERAL FUND FACILITIES MAINTENANCE RESERVE: an amount equal to between ten percent (10%) and fifteen percent (15%) of the total acquisition cost of the City's building assets. "I3uikling assets" shall be defined as all permanent or nonpermanent structures constructed or installed to providea workplace for City employees or house city assets andior operations. • GAS TAXES FUND CONTINGENCY RESERVE: an amount equal to a minimum of five percent (5%) of the estim.ated annual revenue of the Gas Taxes Fund. • SEWER SERVICE FUND OPERATIONS CASH FLOW RESERVE: an amount equal to between twenty-five percent (25%) and fifty percent (50%) of a single year's budgeted Sewer Service Fund, operating expenditures. • SEWER SERVICE FUND METRO CASH FLOW RESERVE: an amount equal to the City's estimated portion of the projected cash needs for capital costs of the San Diego Metropolitan Sewerage System's wastewater treatment program. ATTACHMENT `°A" TITLE: Maintenance of Reserve Funds POLICY #201 ADOPTED: June 1985 AMENDED: September 4 , 01 _ • SEWER SERVICE FUND CAPITAL REPLACEMENT RESERVE: an amount equal to between ten percent (10%) and fifteen percent (15%) of a single year's budgeted Sewer Service Fund operating expenditures. • SEWER SERVICE FUND CAPITAL EXPANSION RESERVE: an amount equal to between ten percent 10% and fifteen percent (15%) of a single year's budgeted Sewer Service Fund operating expenditures. • SEWER SERVICE FUND EMERGENCY I NATURAL DISASTER RESERVE: an amount equal to a minimum of fifteen percent (15%) a single year's budgeted err Service Fund operating a en itures, • LIABILITY INSURANCE RESERVE: an amount sufficient to ensure liability insurance claim assets of the Liability Insurance Fund equal to the eighty percent (80%) Confidence Level of Adequacy applicable to estimated liability insurance claims, as established biennially by the City's actuary. • WORKERS' COMPENSATION RESERVE: an amount sufficient to ensure Workers' Compensation claim assets of the Liability Insurance Fund equal to the eighty percent (80%) Confidence Level of Adequacy applicable to estimated Workers' Compensation claims, as established biermially by the City's actuary. • DEBT SERVICE RESERVES: in each fund om which debt service is paid, an amount equal to the total required, by .ppli able indenture and/or other agreeme t , but in no ease less than one year's debt service requirement of all long-term City obligations, excluding inter - fund loans • IRREVOCABLE SUPPLEMENTAL PENSION TRUST RESERVE: an amount equal to the total net pension liability of the City's pension plans. The balance of this reserve shall not be subject to the "Replenishment of Reserves" guidelines. • IRREVOCABLE OTHER POST -EMPLOYMENT BENEFITS TRUST RESERVE: an amount equal to the total net other post -employment benefits (OPEB) liability of the City's OPEB plans. The balance of this reserve shall not be subject to the "Replenishment of Reserves' guidelines. es. • VEHICLE REPLACEMENT RESERVE: an amount equal to between the accianulated depreciation and estimated replacetnent value of the motor vehicle assets of the Vehicle Replacement Fund. For the purposes of this policy, "motor vehicle" shall be defined as a self- propelled, wheeled vehicle with propulsion provided by an engine or motor which must be operated by one or more persons to perform the ons for which it is designed. ATTACHMENT "A" TITLE: Maintenance of ReserveFunds POLICY #201 err ADOPTED: June 26,19 AMENDED: September 17, 2019 The actual amount of each reserve shall be determined each year by the City Manager as part of the budgeting process and shall be annually reported to the City Council as part of or in conjunction with the Comprehensive Annual Financial Report CA ; however, nothing in this policy shall prevent determining or reporting on the level of any reserves at other times during the year. The above requirements may be suspended only upon approval of Council. Re 1 i hrrne: t of Reserves If its balance falls below the minimum required level, the City shall strive to restore it to the minimum required balance by any feasible means, including, but not limited to, adopting a budgetary surplus; applying any cost savings, over -realized revenues, and/or surpluses realized within the applicable fund; or transferring a portion of the General Fund Contingency Reserve. Unless otherwise noted, the following guidelines will be used to restore a reserve mod: • If a reserve is drawn down to 75 99% of its minimum. required balance, it shall be restored to 100% over a to 3 year period. • If a reserve is drawn down to 50-74% of its minimum required balance, it shall be restored to 100% over a 3 to 5 year period. • If a reserve is drawn down below 50% of its minimum required balance, it shall be restored to 100% over a 5 to 7 year period. These guidelines may be suspended, in whole or part, if i a cial or economic circumstances prevent meeting any or all of the timelines. Once established or increased, a reserve balance shall become committed fund balance, as defined by o rnmnt l Accounting Standards Board Statement Number 54, within the applicable fund and, as such, shall require Council approval for all transfers and expenditures therefrom. Related Polk References None J!10r_ oli _Amend a is November 21, 2017 June 7, 2016 October 7, 2014 December 1, 2013 March 12, 2002 ATTACHMENT "A" 3