AgdaPkt 2017-12-18 Special Joint SA PFA

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Transfers Transfers out of the General Fund totaled $14.3 million in FY 2016-17. In FY 2016-17, $1.5 million was transferred to the Traffic Safety Fund. The General Fund also transferred $33,000 to the Redwood Shores Landscape Maintenance Fund; $159,000 to the Low and Moderate Income Housing Asset Fund from AB1717 UUT revenues; $102,000 to the Parking Fund to cover the fund’s operational shortfall; and $173,000 to the Water Fund for reimbursement of salaries and benefits. In addition, an amount equal to the utility users’ tax and communication users’ tax revenue, less the Public Financing Authority lease payment, was transferred to the Capital Outlay Fund. This transfer amounted to $8.9 million in FY 2016-17. Finally, the General Fund transferred $1.0 million to the Self-Insurance Fund to cover increased workers’ compensation costs, and $2.4 million to the Docktown Marina Fund. Fund Balance As of June 30, 2017, there was $29.4 million in unassigned fund balance. This is an increase of $4.2 million from June 30, 2016. This is primarily due to revenues exceeding expenditures by $3.9 million. In June 2017, the Council adopted a policy to maintain a General Fund reserve amount of 15% of estimated revenues. Applying the reserve threshold to FY 2017-18 budgeted revenues results in an amount of $11.1 million over the $18.3 million reserve threshold. Pursuant to City Council direction in May 2017, the City will be opening a Section 115 Trust Account in FY 2017-18 that is restricted for pension related expenditures. At that time, the Council directed $8.8 million of the excess fund balance to fund the new Trust account. Pending Council approval, the remaining $2.3 million fund balance will be transferred to the Docktown Fund. The Capital Outlay Fund, Special Revenue Funds, Debt Service Fund, and Capital Project Funds are also included in the CAFR and are highlighted in the MD&A section. Self-Insurance Fund Highlights The Self-Insurance Internal Service Fund had net cash provided by operating activities of $1.3 million, as premiums charged to operating departments were more than sufficient to cover the activity in the Self-Insurance Fund. To offset the beginning deficit balance, and to maintain funding at a confidence level of 80% as recommended by Bickmore, the City’s risk administrator, the General Fund transferred $1.0 million to the Self-Insurance Fund in FY 2016-17. The Self-Insurance Fund ended up with a net position of $928,000 as of June 30, 2017. New Accounting Standards Four new accounting standards issued by the Governmental Accounting Standards Board Statement were implemented in FY 2016-17. None of the new standards had an impact on the CAFR. 6.1.E. - Page 4