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Sx i! A' City of San Leandro Meeting Date: November 7, 2011 00 11 . Resolution - Council File Number: 11 -322 Agenda Section: ACTION ITEMS Agenda Number: TO: City Council FROM: Lianne Marshall Interim City Manager /Executive Director BY: James O'Leary Interim Finance Director FINANCE REVIEW: James O'Leary, Interim Finance Director TITLE: ADOPT: Resolution Authorizing Transfers from General Fund Fund Balance to Self Insurance Fund and Economic Uncertainty Reserve WHEREAS, the City Council Finance Committee reviewed the 2010 -11 Budget Review and Budget Amendment at its meeting on September 9, 2011, and WHEREAS, the City Council has established a philosophy for financial reserve funds. In 1989 -90, the City Council adopted a series of financial values that were utilized to develop the budget. The Financial Goals Statement identifies and formalizes the financial principles by which the organization is guided, and WHEREAS, the Major Emergencies and Economic Uncertainty designations reflect the General Fund reserves set aside for future unplanned contingencies. The amount of the Major Emergencies reserve has remained unchanged during the recent years of depressed economics. The reserve has remained at $5,000,000 since 2007 -08. The Economic Uncertainty reserve, at $10,033,000 in 2007 -08, has since been partially utilized for operations over the past several years, and WHEREAS, the preliminary year -end close for the Self Insurance Fund reflected a fund balance deficit of ($1,192,000). The deficit occurred as a result of significantly higher Fund expenditures in 2010 -11. One unanticipated cost was that case reserves for liability and workers' compensation increased by $2,361,400. NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as 1511 e M, City of San Leandro Page 1 Printed on 11/1/2011