HomeMy WebLinkAboutReso 2014-192 RESOLUTION I�O. 2014-192
RESOLUTION OF THE CITl' COUT'CIL OF T�� CITY OF
CHULA VISTA APPROVII�G THE CATEGOWZ.ATION OF
�3.6 MILLIOI�' II�' THE ECONOMIC CO?�TINGEIvC1'
RESERVE AS A COMT4ITTED FUI�'D BALANCE FOR
FISCAL 1'EAR 2013/2014. II�' ACCORDA?�'CE R'ITH
GOVERI�'MENTAL ACCOUI�TTII�'G STANDARDS BOARD
STATEMEI��T NO. �4 AI�'D COUT'CIL POLICY I�TO. 1�9-04
V�'HEREAS. in Februan 2009, the Govemmental Accountino Standazds Board (GASB)
issued Statement i�'o. �4, Fund Balance Reportine and Governmental Fund T}-pe Definitions; and
��'HEREAS. this ne�v standard does not chanee the total amount of a ei��en fund balance.
but it substantiallv altered the categories and terminolo�� used to describe the components that
mal:e up a fund balance; and
�1'HEREAS, the Economic Contingenc}� Resen e (ECR) or "rainy da�� fund" pro�ides the
General Fund with the financial resilienc�� to �+�eather economic do�ti�ntums: and
V�'HEREAS, the ECR represents funds set aside to assist in stabilizine fluctuations in the
Cit��`s discretionan� revenue sveams: and
R'HEREAS, several of the Cin�`s major re�enue sources, such as Sales Ta�; Propem�
Ta�_ Motor Vehide License Fees and Transient Occupancy Ta� are sensitive to the economic
climate of the reeion: and
W'HEREAS, e��idenced b�� the Great Recession. the ��olatilitv of these revenue streams
had a sienificant impact on the City's ability to maintain service levels for essential City
services: and
�VHEREAS, the ECR �vill assist in minimizine impacts to semice le��els during a
significant dowmtum in the econom}� bv backfilling signifcant revenue shortfalls in the General
Fund: and
VJHEIZEAS. Citv Council Policv No. 220-03 recommends an ECR minimum level of�%
of the General Fund operating budeet; and
V�'HEREAS. committina �3.6 million will brins the ECR to ZJ% of Fiscal I'eaz
2014/201� General Fund operating budeet and �+�ill provide proaress to���azds meeting the �%
goal: and
WHEREAS, the reserve ���ill be funded from Fiscal Year 20li/201� bud�etan� savines:
and
Resolution No. 2014-192
PaRe No. 2
WHEREAS. the fundina of the Economic Contingency reserve is considered a
commitment of fund balance and therefore requires City Council action to approve the
designation in accordance ��ith GASB �4 and be in compliance with Council Policy No. 1�9-04;
and
WHEREAS, the approval of the resolution will enable the classification of�3.6 million
to Committed Fund Balance in the Cit�-'s Fiscal Year 2013/2014 audited financial statements.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Cin� of Chula
Vista does herebv appro��e [he cateeorization of $3.6 million in the Economic Contineency
Reserve as a Committed Fund balance for Fiscal Yeaz 20li/2014, in accordance with
Governmental Accounting Standards Board Statement No. 54 and Council Policy No. 159-04.
Presented b}� Approved as to form by
.
Mazia achadoorian en R. Go gins
Deputy City Manager/CFO Att ey
Resolution ?�o. 2014-192
Pase Ivo. 3
PASSED. _APPROVED. and ADOPTED b�� the Cit�- Council of the Cin of Chula Vista.
California. this 28th da�� of October 2014 b� the followins vote:
AYES: Councilmembers: Aeuilar. Bensoussan. Ramirez. Salas and Cox
I�'Al'S: Councilmembers: None
ABSENT: Councilmembers: I�'one
Cher}�I Cox, 1�1 r '
ATTEST:
/ �
Donna . Norris. CA4 . it� lerk
STATE OF CALIFORI�'IA )
COUI�iT1' OF SAN DIEGO )
CITI' OF CHULA VISTA )
1. Donna R. Noms. Cit�� Clerk of Chula Vista. California. do herebv cenifi� that the foresoine
Resolution No. 2014-192 ���as dul�� passed. approved, and adopted by the City Council at a
reeulaz meetine of the Chula Vista Citv Council held on the 28th dav oF October 2014.
Executed this 28th da�� of October 2014.
. �
Donna R. T`'orris. 1�4C. rt�� Clerk