City of Atascadero Financial Reserve Policy What are reserves? - - PowerPoint PPT Presentation

City of Atascadero

Financial Reserve Policy

What are reserves?

• Can be thought of as a

cushion or a savings account

• One-time money

Current Strategy

Financial Strategy Years Dollars Expenses Revenues

Reserved General Fund Balance

1995

• $790,360
• r -11% of expenditures

2006 $7,200,000

• r 44% of expenditures

Plan today for the future

• Each City is different
• Susceptibility of the City to

risk factors

• Community’s level of risk

tolerance

• Two-year budget cycle

commencing

• Plan is critical

Assessing Risk

1. Breadth of General Fund Revenue 2. Tax Base Stability 3. State and Federal Action 4. Cash Flows 5. Natural Disasters or Emergencies 6. Asset Replacement 7. Service Level Consistency 8. Opportunities 9. Future Commitments

General Fund Taxes

TOT 4% Other Taxes 3% Franchise Fees 7% Sales Tax 34% Property Tax 52%

General Fund Tax Revenue

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Atascadero Arroyo Grande Grover Beach M orro Bay Paso Robles Pismo Beach San Luis Obispo

Property Tax Sales Tax Franchise Fees TOT Utility Users Tax Other Taxes

Sales Tax

Percentage of Sales Tax Revenue Number of retail outlets that supply the revenue 0% - 20% 2 21% - 40% 10 41% - 60% 27 61% - 80% 46 81% - 100% 972

Property Tax Revenue per Capita

$- $20 $40 $60 $80 $100 $120 $140 $160 1 9 8 6

• 1

9 8 7 1 9 8 7

• 1

9 8 8 1 9 8 8

• 1

9 8 9 1 9 8 9

• 1

9 9 1 9 9

• 1

9 9 1 1 9 9 1

• 1

9 9 2 1 9 9 2

• 1

9 9 3 1 9 9 3

• 1

9 9 4 1 9 9 4

• 1

9 9 5 1 9 9 5

• 1

9 9 6 1 9 9 6

• 1

9 9 7 1 9 9 7

• 1

9 9 8 1 9 9 8

• 1

9 9 9 1 9 9 9

• 2

2

• 2

1 2 1

• 2

2 2 2

• 2

3 2 3

• 2

4 2 4

• 2

5 2 5

• 2

6

Sales Tax per Capita

Constant Dollar

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 1 9 8 6

• 1

9 8 7 1 9 8 8

• 1

9 8 9 1 9 9

• 1

9 9 1 1 9 9 2

• 1

9 9 3 1 9 9 4

• 1

9 9 5 1 9 9 6

• 1

9 9 7 1 9 9 8

• 1

9 9 9 2

• 2

1 2 2

• 2

3 2 4

• 2

5

State and Federal Action

• Vehicle License Fees and other

subventions

• Property Tax in Lieu of VLF
• VLF Backfill Gap
• Booking Fees
• Property Tax Administrative Charges

SB154/AB8 Bailout

• Liquor License Fees
• Highway Carriers Uniform Business Tax
• Financial Aid to Local Agencies
• Extra VLF for no and low-property tax

cities

• Local Agency Relief Fund
• Business Inventory Exemption

Reimbursements

• Supplemental Property Tax Roll

(SB794)

• Property Tax for no and low-property tax

cities (SB709)

• Cigarette Tax Subventions
• ERAF Property Tax Shirt Phase I
• ERAF Property Tax Shift Phase II
• ERAF Property Tax Shift Phase III

Agreement

• Redevelopment Agencies ERAF
• Unfunded Mandates
• Trailer Coach /mobile Home Fees
• Half Cent Sales Tax for Public Safety

(Prop 172)

• COPs Public Safety Funding
• Discretionary Local Assistance (AB 1661,

AB 1396)

• Booking Fee Relief (AB 1662)
• Police Technology Grants (CLEEP)
• Traffic Congestion Relief (sales tax on

gasoline)

• Vehicle code Fines
• OSHA
• NIOSH
• NPDES

Cash Flow

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

J u l

• 5

A u g

• 5

S e p

• 5

O c t

• 5

N

• v
• 5

D e c

• 5

J a n

• 6

F e b

• 6

M a r

• 6

A p r

• 6

M a y

• 6

J u n

• 6

Disbursements Receipts

Fund Budgeted Cash Balance @ 6-30-07 CDBG (524,200) $ Local Transportation Fund (567,000) Circulation Impact Fees Fund (889,000) Park Impact Fees (568,000) Prop 12 Funds (298,890) Youth Center (4,372,000) (7,219,090) $

Cash Flow

Balance General Fund June 30, 2006 7,828,000 $ November 30, 2006 4,045,000 Cash Flow Fluctuation 3,783,000 $

Natural Disasters and Emergencies

$2.95 million due from FEMA/OES

Earthquakes Wildfires Floods

Asset Replacement

Service Level Consistency

• Police protection
• Response to fire and medical emergencies
• Traffic monitoring
• Road maintenance
• Sports and classes
• Community events
• Permit processing
• Employee retention

Opportunities

Hay and Feed Building Paloma Park

Future Commitments

• Youth/Community Center
• Pavilion Improvements
• Police Station Improvements
• Downtown Streetscape Maintenance
• Creek Trails
• Neighborhood Park Maintenance
• Affordable Housing Management

Interest Earnings

Works as an ‘endowment’ $324,600 interest earnings in 2005-2006

Strategy

• Conservative strategy over the last decade
• Level of risk now

– Increase? – Decrease? – Keep consistent?

• Flexibility level

– Spend reserves? – Maintain reserves?