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File Number: 13-571 <br />One Time Resources Policy <br />The City’s policy is to avoid the use of one -time revenues to fund ongoing operations, though <br />when considered as part of the City’s Seven -Year All Fund Financial Long Term Plan, use of <br />one-time revenue may be appropriate to bridge short-term gaps in available resources. <br />Council Goal <br />The City Council adopted its goals for 2013-2015. The first goal is to “place the City on a firm <br />foundation for long-term fiscal sustainability. <br />DISCUSSION <br />The Council’s reserve guideline for the General Fund is not achieved as of June 30, 2013. <br />The economic contingency reserve is comprised of the major emergencies, economic <br />uncertainty and community impact categories, and together, these funds were projected in the <br />Adopted Biennial Budget at $11,377,000 as of 6/30/13. This reserve amount represents <br />14.2% of the General Fund projected 2013-14 expenditures. The $3.2 million surplus should <br />now be designated to the economic contingency reserve. <br />If the Council approves the addition to the reserve, the City would still fall short of its reserve <br />guideline indicated above. At the $80 million expenditure level, the General Fund reserve <br />should be $16 million, or 20% of General Fund expenditures. <br />One significant pending item for the Council to consider is the expected appropriation of $3 <br />million for the San Leandro Hospital subsidy. Staff expects to bring a resolution to Council <br />approving this contract in the next few months. <br />Major Emergencies and Economic Uncertainty <br />The following summarizes many of the known calamities that could be defined as major <br />emergencies and economic uncertainties. An increased reserve enables the City to prepare <br />for disasters, including the opening of its Emergency Operations Center. <br />Natural Calamities <br />From time to time, the City is subject to natural calamities, including, but not limited to, <br />earthquake, flood, wildfire, tsunami, or pipeline incident, that may adversely affect economic <br />activity in the City, and which could have a negative impact on City finances. There can be no <br />assurance that the occurrence of any natural calamity would not cause substantial <br />interference to and costs for vital City services. <br />Seismic. The City is located in an area classified as Seismic Zone 4 by the Uniform <br />Building Code (UBC). The area includes all of the greater San Francisco Bay Area and all of <br />coastal California. Seismic Zone 4 is the highest risk zone classification under the UBC. <br />Active earthquake faults underlie both the City and the surrounding Bay Area . The <br />Page 2 City of San Leandro Printed on 11/12/2013