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Sx <br />i! <br />A' City of San Leandro <br />Meeting Date: November 7, 2011 <br />00 11 . Staff Report <br />File Number: 11 -327 Agenda Section: ACTION ITEMS <br />Agenda Number: 10.B. <br />TO: City Council <br />FROM: Lianne Marshall <br />Interim City Manager /Executive Director <br />BY: James O'Leary <br />Interim Finance Director <br />FINANCE REVIEW: James O'Leary, Interim Finance Director <br />TITLE: Staff Report for Resolution Authorizing Transfers from General Fund Fund <br />Balance to Self Insurance Fund and Economic Uncertainty Reserve <br />RECOMMENDATION <br />Staff recommends that the City Council approve the resolution authorizing transfers from the <br />General Fund fund balance to the Economic Uncertainty reserve and to the Self Insurance <br />Fund. The transfer to the Self Insurance Fund was administratively approved by the City <br />Manager to facilitate the preparation of the City's 2010 -11 financial statements. This transfer <br />should be confirmed by City Council approval of the resolution. A separate transfer to the <br />Economic Uncertainty reserve is also recommended by the Finance Committee. <br />BACKGROUND <br />The Finance Committee reviewed the 2010 -11 Budget Review and Budget Amendment at its <br />meeting on September 9, 2011. The report confirmed that the 2010 -11 year -end forecast for <br />the General Fund reflected a significant improvement over the adopted budget, largely due <br />to an increase in projected revenues. Revised projections reflected an operating (revenue <br />over expenditures) increase of $2,356,200. The adopted budget had shown an operating <br />deficit of ($3,079,000). As a result of this improvement in the revenue and expenditure <br />balance, the General Fund fund balance was similarly improved to about $4,000,000. <br />The attached worksheet shows reserve funds totaling $12,723,000 for General Fund reserve <br />designations and $308,000 for Self Insurance reserves. The Major Emergencies reserve <br />totals $5,000,000, a consistent amount since 2007 -08. The Economic Uncertainty reserve <br />amounted to $10,033,000 in 2007 -08 and has declined over the past three years to the <br />current amount of $3,796,500. The Major Emergencies and the Economic Uncertainty <br />reserves are currently 13% of the General Fund operating expenditures. <br />City of San Leandro Page 1 Printed on 11/1/2011 <br />