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 Dollars Years Expenses Revenues

Reserved General Fund Balance 1995 -$790,360 or -11% of expenditures 2006 $7,200,000 or 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 Property Tax 52% Sales Tax Franchise TOT Other 34% Fees 4% Taxes 7% 3%

General Fund Tax Revenue 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Atascadero Arroyo Grover M orro Bay Paso Robles Pismo San Luis Grande Beach Beach Obispo Property Tax Sales Tax Franchise Fees TOT Utility Users Tax Other Taxes

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

Property Tax Revenue per Capita $160 $140 $120 $100 $80 $60 $40 $20 $- 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 - - - - - - - - - - - - - - - - - - - - 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2

Sales Tax per Capita Constant Dollar $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- 7 9 1 3 5 7 9 1 3 5 8 8 9 9 9 9 9 0 0 0 9 9 9 9 9 9 9 0 0 0 1 1 1 1 1 1 1 2 2 2 - - - - - - - - - - 6 8 0 2 4 6 8 0 2 4 8 8 9 9 9 9 9 0 0 0 9 9 9 9 9 9 9 0 0 0 1 1 1 1 1 1 1 2 2 2

State and Federal Action • Vehicle License Fees and other • ERAF Property Tax Shirt Phase I subventions • ERAF Property Tax Shift Phase II • Property Tax in Lieu of VLF • ERAF Property Tax Shift Phase III • VLF Backfill Gap Agreement • Booking Fees • Redevelopment Agencies ERAF • Property Tax Administrative Charges • Unfunded Mandates SB154/AB8 Bailout • Trailer Coach /mobile Home Fees • Liquor License Fees • Half Cent Sales Tax for Public Safety • Highway Carriers Uniform Business Tax (Prop 172) • Financial Aid to Local Agencies • COPs Public Safety Funding • Extra VLF for no and low-property tax • Discretionary Local Assistance (AB 1661, cities AB 1396) • Local Agency Relief Fund • Booking Fee Relief (AB 1662) • Business Inventory Exemption • Police Technology Grants (CLEEP) Reimbursements • Traffic Congestion Relief (sales tax on • Supplemental Property Tax Roll gasoline) (SB794) • Vehicle code Fines • Property Tax for no and low-property tax • OSHA cities (SB709) • NIOSH • Cigarette Tax Subventions • NPDES

Cash Flow 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 Disbursements 1,500,000 Receipts 1,000,000 500,000 - 5 6 6 6 6 6 5 5 5 5 6 5 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - l b v c n r n u p t r y g c a e p o e a a u J e u O M F A S N D J M J A

Cash Flow Balance General Fund June 30, 2006 $ 7,828,000 November 30, 2006 4,045,000 Cash Flow Fluctuation $ 3,783,000 Budgeted Cash Balance @ 6-30-07 Fund 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)

Natural Disasters and Emergencies $2.95 million due from FEMA/OES Earthquakes Floods Wildfires

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?