AgdaPkt 2018-07-23 Joint SA PFA - Laserfiche WebLink

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6A.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 23, 2018 SUBJECT Establish a Fiduciary Trust Fund in the City's financial system for the accounting of the City's Section 115 Trust Account Fund; Establish a Special Revenue Fund for the accounting of the Other Restricted Donations and Grants; Establish a Capital Projects Fund for the accounting of the Public, Educational, and Governmental (PEG) Fees RECOMMENDATION Waive First Reading and Introduce an Ordinance (Attachment 1) adding: 1. Section 2.41.13 to Chapter 2, Article IV of the Redwood City Municipal Code to establish a Fiduciary Trust Fund in the City's financial system to be known as Section 115 Trust Account Fund; and 2. Section 2.41.14 to Chapter 2, Article IV to the Redwood City Municipal Code to establish a Special Revenue Fund in the City's financial system to be known as Other Restricted Donations and Grants Fund; and 3. Section 2.41.15 to Chapter 2, Article IV to the Redwood City Municipal Code to establish a Capital Projects Fund in the City's financial system to be known as PEG Fees Fund BACKGROUND The City's practice has been to establish new funds via ordinance. In keeping with past practice, staff recommends the creation of three separate new funds, via ordinance, to properly account for specific funds related to the City's Section 115 Pension Trust Account, Other Restricted Donations and Grants, and PEG Fees. ANALYSIS Section 115 Trust Account Fund In September 2017, the City Council approved the establishment of the Section 115 Trust Account with the Public Agencies Retirement System (PARS). According to the Governmental Accounting Standards Board (GASB) Statement No. 84, pension trust funds are required to be reported in a Fiduciary Trust Fund in the basic financial statements. Therefore, staff is required to establish a new Fiduciary Trust Fund, the Section 115 Trust Account Fund. In order to be consistent with past practice and per the recommendation of the City Attorney's Office, the proposed ordinance establishes this fund.