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HomeMy WebLinkAboutResolutions - No. 2022-105RESOLUTION NO. 2022-105 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE USE OF ONE TIME GENERAL FUND SURPLUS FUNDS ACCRUED AS A RESULT OF CONSERVATIVE PANDEMIC BUDGETING, STRONG ECONOMIC ACTIVITY, AND FEDERAL REIMBURSEMENTS FOR PANDEMIC RELATED SPENDING; AND FURTHER APPROPRIATING FUNDS ($700,000) WHEREAS, the City Council has taken significant action to improve the City's financial position through enacting sound financial policy, addressing long term liabilities, limiting spending, and built substantial reserves; and WHEREAS, as a result of these forward thinking financial decisions, the City of Lodi was able to enter the COVID-19 pandemic in a sound financial position and approach budgeting cautiously without drastic cutbacks; and WHEREAS, even without substantial cuts, the City did freeze positions and reduce spending on general operations during the pandemic; and WHEREAS, despite public health restrictions on economic activity, the City's revenues continued to increase during the pandemic at a rate that exceeded pre - pandemic estimates; and WHEREAS, the City was able to fund pandemic related public health and safety measures, including those to protect employees and minimize the spread of COVID-19 to vulnerable populations through meal delivery (Great Plates Delivered program) out of general revenue that otherwise would have been available for programming; and WHEREAS, the federal government has reimbursed the City in full for all pandemic related spending at 100%; and WHEREAS, the City Treasurer is required by the City Council adopted Pension Stabilization Policy to invest reserves in excess of 16% of General Fund revenues to be invested in a Pension Stabilization Fund to be used to help offset future Unfunded Accrued Liability (UAL) payments to CalPERS or to buy down the City's UAL; and WHEREAS, given the historic nature of the pandemic reimbursements, the amount available in excess of 16% far exceeded expectations; and WHEREAS, the Treasurer has calculated the Fiscal Year 2020-21 year end fund balance and fund balance requirement net of all pandemic related spending and reimbursements and invested the $1,669,145 in excess of 16% using this calculation into the PSF already, bringing the PSF balance to over $23 million; and WHEREAS, the pandemic related reimbursements that still remain in the General Fund balance total $10,280,000 and per policy, the Treasurer is required to invest those funds in the PSF; and WHEREAS, the one-time resources available present a unique opportunity for City Council to address substantial community needs in addition to the continued focus on long term liabilities and stay in compliance with the City's fund balance reserve policy; and WHEREAS, $9,980,000 of this funding was allocated by separate Council resolution. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi approves the use of one time General Fund surplus funds and appropriates funds in the amount of $700,000 for the Access Center Safety/Security for approximately 2.5 years; and BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the appropriations and expenditures authorized in this resolution to be carried forward into subsequent fiscal years until fully spent. Dated: April 20, 2022 I hereby certify that Resolution No. 2022-105 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 20, 2022 by the following vote: AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, and Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mayor Chandler ABSTAIN: COUNCIL MEMBERS — None - OLIVIA NASHED City Clerk 2022-105