REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Sean Crumby, Director of Public Works
Subject:
title
Approve the Infrastructure Fund Annual Report for Fiscal Year 2019/20
body
Statement of Issue:
The City Charter requires an annual review and performance audit of the Infrastructure Fund, as well as a report of the findings to the City Council, prior to adoption of the following Fiscal Year (FY) budget. This review covers FY 2019/20.
Financial Impact:
Not applicable.
Recommended Action:
recommendation
Approve the Infrastructure Fund Annual Report for FY 2019/20.
end
Alternative Action(s):
Direct staff to make revisions and resubmit to Council at a later date.
Analysis:
The Infrastructure Fund was established in 2002 by City Charter Section 617(c), which states, "the City Council shall by ordinance establish a Citizens Infrastructure Advisory Board (CIAB) to conduct an annual review and performance audit of the Infrastructure Fund and report its findings to the City Council prior to adoption of the following fiscal year budget."
The single substantial revenue source to the fund is General Fund excess fund balance per the Financial Policy adopted in FY 2006/07 and revised in FY 2009/10. The policy states the General Fund unassigned fund balance will be allocated 50% to the Economic Uncertainties Reserve, 25% to the Infrastructure Fund, and 25% to the Capital Improvement Reserve.
Beginning in FY 17-18, Capital Improvement Program (CIP) projects previously budgeted in the General Fund, were instead budgeted in the Infrastructure Fund with an accompanying General Fund transfer. Transfers in FY 2019/20 totaled $4,250,000 to fund infrastructure improvements. Interest and market adjustments totaled $329,936. Other revenue included a maintenance agreement reimbursement and sales of plans and specs totaling $10,185. The fund also received a grant reimbursement of $...
Click here for full text