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

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6A.A. - Page 2 Once the City established a Section 115 pension trust account with PARS, an initial trust deposit of $10.5 million was made in January 2018. This deposit included $8.8 million from the General Fund and $1.7 million from other City funds, as some employees are budgeted in other funds, primarily the Sewer and Water Funds. The proposed Ordinance establishes a new Fiduciary Trust Fund for the recording of the initial deposit to the Section 115 Trust, future investment gains/losses, as well as any additional funding to be contributed in the future. Whether to contribute additional funds to the Trust in future fiscal years would require an annual evaluation, and would depend upon the City's year-end budget position and overall financial outlook. Other Restricted Donations and Grants Fund Periodically, grants, donations, or other revenues have been received by departments from businesses, organizations, or individuals for specific programs or for other purposes. Currently these monies are accounted for as liabilities within the General Fund. According to GASB Statement No. 54, revenues that are committed to expenditures for specified purposes other than debt service or capital projects should be accounted for in a Special Revenue Fund. Therefore, staff is required to establish a new Special Revenue Fund, the Other Restricted Donations and Grants 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. PEG Fees Fund The City receives Public, Educational, and Governmental (PEG) Fees collected on the City's behalf by cable providers operating within the City's jurisdiction. Federal law requires that PEG Fees be used for capital expenditures or operational equipment related to PEG channel facilities (local access television channels). In Redwood City, the cost of equipment used to televise the City Council meetings is funded using this revenue source. Currently these monies are accounted for as liabilities within the General Fund. According to GASB Statement No. 54, financial resources that are restricted to expenditures for capital outlays should be accounted for in a Capital Projects Fund. Therefore, staff is required to establish a new Capital Projects Fund, the PEG Fees 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. ALTERNATIVES Council could decide not to create the new funds. If so, monies deposited into the Trust will have to be accounted for in a different City fund, which would be in violation of fund reporting standards established by the Governmental Accounting Standards Board. In addition, other restricted donations and grants and PEG Fees will be accounted for in other City funds. This will create inefficiencies and compromise the ability to account for specific funding and program balances.