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HomeMy WebLinkAbout2018-06-21 - Agenda Packet - SpecialJUNE 21, 2018 - 5:00 PM SPECIAL MEETING CITY COUNCIL/FIRE PROTECTION DISTRICT AGENDA 10500 Civic Center Drive, Council Chambers Rancho Cucamonga, CA Pledge of Allegiance Roll Call: Mayor Michael Mayor Pro Tem Kennedy Council Members Alexander, Spagnolo and Williams This is the time and place for the general public to address the Fire Protection District and City Council on any item listed on the agenda. State law prohibits the Fire Protection District and City Council from addressing any issue not previously included on the Agenda. The Fire Protection District and City Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual or less, as deemed necessary by the Mayor, depending upon the number of individuals desiring to speak. All communications are to be addressed directly to the Fire Board, or City Council not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, making loud noises, or engaging in any activity which might be disruptive to the decorum of the meeting. Page 1 C1. Consideration to Approve the Following to be in Compliance with Governmental Accounting Standards Board (GASB) Statement No. 54: 1) Updated Fund Balance 5 Policy and 2) a Resolution Committing to the Level of Fiscal Reserves for the Rancho Cucamonga Fire Protection District. RESOLUTION NO. FD 18-005 RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO 11 CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA COMMITTING TO THE LEVEL OF FISCAL RESERVES FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT 12 C2. Consideration of Approval of Revisions to Amended Fiscal Year 2017/18 Appropriations. D1. Consideration to Approve the Following to be in Compliance with Governmental Accounting Standards Board (GASB) Statement No. 54: 1) Updated Fund Balance 14 Policy and 2) a Resolution Committing to the Level of Fiscal Reserves for the City of Ranch Cucamonga. RESOLUTION NO. 18-047 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO 20 CUCAMONGA, CALIFORNIA, COMMITTING TO THE LEVEL OF FISCAL RESERVES FOR THE CITY OF RANCHO CUCAMONGA D2. Consideration to Approve Updated City General Fund Reserve Funding Goals Policy. 21 D3. Consideration of Approval of Revisions to Amended Fiscal Year 2017/18 Appropriations. 27 D4. Consideration of a Resolution Amending an Approved I nterfund Loan from the Capital 29 Reserve Fund (Fund 025) to the General Fund (Fund 001) and to the Sports Complex Fund (Fund 700) for the Purchase and Installation of Solar Photovoltaic Systems at Central Park and Epicenter. RESOLUTION NO. 18-048 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO 31 CUCAMONGA, CALIFORNIA, AMENDING AN APPROVED INTERFUND LOAN FROM THE CAPITAL RESERVE FUND TO THE GENERAL FUND AND TO THE SPORTS COMPLEX FUND FOR THE PURCHASE AND INSTALLATION OF SOLAR PHOTOVOLTAIC SYSTEMS AT CENTRAL PARK AND EPICENTER E1. Consideration to Adopt the General Fund Preliminary Budget, Approve a Resolution 32 Adopting the General Fund Appropriations Limit for Fiscal Year 2018/19, and Set Approval of a Final Budget for the July 18, 2018 Board Meeting. RESOLUTION NO. FD18-006 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO 34 CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING A GENERAL FUND APPROPRIATIONS LIMIT FOR FISCAL YEAR 2018/19 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION E2. Consideration to Approve Resolutions Adopting a Budget in the Amount of $6,065,870 35 Page 2 and Approving the Appropriations Limit in the Amount of $14,956,165 for Fiscal Year 2018/19 in Communities Facilities District (CFD) No. 85-1. RESOLUTION NO. FD 18-009 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, 37 CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR MELLO-ROOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2018/19 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION RESOLUTION NO. 18-010 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO 38 CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR MELLO-ROOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2018/19 E3. Consideration to Approve Resolutions Adopting a Budget in the Amount of $2,445,940 and Approving the Appropriation Limit in the Amount of $3,786,430 for Fiscal Year 2018/19 in Community Facilities District (CFD) No. 88-1. RESOLUTION NO. FD 18-007 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, CITYOF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR COMMUNITY FACILITIES DISTRICT NO. 8801 FOR FISCAL YEAR 2018/19 RESOLUTION NO. FD 18-008 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR COMMUNITY FACILITIES DISTRICT NO. 88-1 FOR FISCAL YEAR 2018/19 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION 39 M 42 F1. Consideration to Adopt the Fiscal Year 2018/19 Budget and the Article XIIB 43 Appropriations Limit. RESOLUTION NO. 18-049 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO 45 CUCAMONGA, CALIFORNIA ADOPTING THE CITY'S FISCAL YEAR 2018/19 BUDGET RESOLUTION NO. 18-050 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA ESTABLISHING AN APPROPRIATIONS LIMIT 46 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA STATE CONSTITUTION FOR FISCAL YEAR 2018/19 CERTIFICATION I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my Page 3 designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least twenty-four (24) hours prior to the meeting per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California and on the City's website. Page 4 DATE: June 21, 2018 TO: President and Members of the Board of Directors FROM: John R. Gillison, City Manager INITIATED BY: Tamara L. Layne, Finance Director SUBJECT: CONSIDERATION TO APPROVE THE FOLLOWING TO BE IN COMPLIANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT NO. 54: 1) UPDATED FUND BALANCE POLICYAND 2)ARESOLUTION COMMITTING TO THE LEVEL OF FISCAL RESERVES FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT. RECOMMENDATION: It is recommended that the Fire Board approve the following to be in compliance with Governmental Accounting Standards Board (GASB) Statement No. 54: 1) updated Fund Balance Policy and 2) a resolution committing to the level of fiscal reserves for the Rancho Cucamonga Fire Protection District. BACKGROUND: On a regular basis, the Governmental Accounting Standards Board (GASB) adopts new policies and procedures that apply to public entities. In February 2009, GASB issued Statement No. 54 which applies to Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). Since 2011, in order to be in compliance with GASB 54, the Fire District has approved a Fund Balance Policy and a resolution committing to the level of reserves for the Rancho Cucamonga Fire Protection District. ANALYSIS: In order to accommodate any changes to these commitments that may become necessary due to changes in operations or changes in City Council goals, staff annually brings this policy and resolution before the Board for approval at the end of each fiscal year. The following updates (City- and District - related) have been made to the policy: • The "RC Sports Center vehicle and equipment replacement" reserve has been removed from the policy as the respective vehicle and equipment will be replaced through the City's Vehicle/Equipment Replacement Fund (Fund 712). Therefore, a separate reserve is not necessary. The Fund Balance Policy provides guidelines for building Fire District reserves in support of future needs for capital replacement, resiliency in the event of an economic downturn, and planned enhancements to the services and facilities available to the citizens of Rancho Cucamonga. The attached Resolution formally establishes the Fire District's fund balance commitments for the fiscal year ending June 30, 2018. Page 5 FISCAL IMPACT: None. COUNCIL GOAL(S) ADDRESSED: Not applicable. ATTACHMENTS: Description Attachment 1 - Fund Balance Policy Attachment 2 - Resolution Page 6 PURPOSE CUCAMONGA RANCHO CUCAMONGA FIRE PROTECTION DISTRICT FUND BALANCE POLICY POLICY NO.: -_ EFFECTIVE: June 15, 2011 REVISED: June 21, 2018 APPROVED: This Fund Balance Policy establishes the procedures for the reporting of unrestricted fund balance in the City General Fund and Fire District financial statements. Certain commitments and assignments of fund balance will help ensure that there will be adequate financial resources to protect the City against unforeseen circumstances and events such as revenue shortfalls and unanticipated expenditures. The policy also authorizes and directs the Finance Director to prepare financial reports which accurately categorize fund balance as per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. GENERAL POLICY Fund balance is essentially the difference between the assets and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City/Fire District is bound to honor constraints on the specific purposes for which amounts can be spent. • Nonspendable fund balance (inherently nonspendable) • Restricted fund balance (externally enforceable limitations on use) • Committed fund balance (self-imposed limitations on use) • Assigned fund balance (limitation resulting from intended use) • Unassigned fund balance (residual net resources) The first two components listed above are not addressed in this policy due to the nature of their restrictions. An example of nonspendable fund balance is inventory. Restricted fund balance is either imposed by law or constrained by grantors, contributors, or laws or regulations of other governments. This policy is focused on financial reporting of unrestricted fund balance, or the last three components listed above. These three components are further defined below. Committed Fund Balance The City Council (which also acts as the Board of Directors for the Rancho Cucamonga Fire Protection District), as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as Page 7 FUND BALANCE POLICY PAGE 2OF4 an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council/Fire Board removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council/Fire Board action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. • Chanaes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the City General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the Fire District's operating budget for the upcoming fiscal year. The specific uses of this commitment include: 1) the declaration of a state or federal state of emergency or a local emergency as defined in Rancho Cucamonga Municipal Code Section 2.36.020; or 2) a change in economic circumstances in a given fiscal year that results in revenues to the City/Fire District being insufficient to cover expenditures for one or more fiscal years. The City Council/Fire Board may, by the affirming vote of four members, change the amount of this commitment and/or the specific uses of these monies. • City Facilities Capital Repair The City's General Fund balance committed for City facilities capital repair and property acquisition is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for governmental activities. • Fire District Facilities Capital Repair The Fire District's fund balance committed for the Fire District facilities capital repair is hereby committed to a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for public safety -fire activities. • Working Capital The City's General Fund balance committed for Working Capital is established at a goal of a minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for Working Capital is established at a goal of a minimum of 50% of the District's operating budget for the upcoming fiscal year. • Self -Insurance The City's General Fund balance and the Fire District's fund balance committed for payment of Worker's Compensation, General Liability, and Employment Practices Liability claims is established at a minimum goal of eight times the City's and the District's total yearly SIRs for all types of insurance coverage. Page 8 FUND BALANCE POLICY PAGE 3OF4 • PASIS Worker's ComDensation Tail Claims The Fire District's fund balance committed for payment of outstanding Worker's Compensation claims remaining after the District's withdrawal from PASIS is established at a goal equal to the most recent fiscal year end Claims Cost Detail Report from the District's third -party administrator plus 15%. • Employee Leave Payouts The City's General Fund balance and the Fire District's fund balance committed for employee leave payouts as valued in accordance with the City's labor contracts as of the last day of the fiscal year. • Vehicle and Equipment Replacement The Fire District's fund balance committed for the replacement of fire safety vehicles and equipment as determined based on the District's replacement criteria is established at a minimum goal of 50% of District vehicle and equipment replacement value. • Law Enforcement The City's General Fund balance committed for public safety purposes, including operations, equipment, capital outlay, personnel, and booking fees. The funding goal for this reserve is the equivalent of 100% of the most recently approved Schedule A from the San Bernardino County Sheriff's Department. Assigned Fund Balance Amounts that are constrained by the City/Fire District's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This policy hereby delegates the authority to assign amounts to be used for specific purposes to the City Manager and/or Finance Director for the purpose of reporting these amounts in the annual financial statements. The following are a few non-exclusive examples of assigned fund balance. • Economic and Community Development Special Services The City's General Fund balance assigned for contracts, special services, or projects associated with Economic and Community Development (ECD) special projects or ECD initiatives/Council goals (such as economic strategy and Development Code contract services) as well as a one year value of staffing costs for Planning, Building and Safety, and Engineering (not including capital and project management). Page 9 FUND BALANCE POLICY PAGE 4OF4 • SDhere of Influence Issues Established to provide funds for a multi-year effort to analyze the physical constraints and opportunities within the sphere area, provide required environmental analysis, and plan for the eventual annexation of the remaining unincorporated areas within the City sphere of influence. This reserve also provides for ancillary costs related to annexation of the sphere area, including mitigation issues and legal challenges. Another area covered by this reserve is the creation of a multi -species habitat conservation plan as well as acquisition of habitat conservation land. • Dispatch System Acquisition The Fire District's fund balance committed to JPA membership for the District's current dispatch system. Unassianed Fund Balance These are residual positive net resources of the General Fund and Fire District funds in excess of what can properly be classified in one of the other four categories. Fund Balance Classification The accounting policies of the City/Fire District consider restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City/Fire District considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. This policy is in place to provide a measure of protection for the City/Fire District against unforeseen circumstances and to comply with GASB Statement No. 54. No other policy or procedure supersedes the authority and provisions of this policy. Page 10 RESOLUTION NO. FD 18 -XXX RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA COMMITTING TO THE LEVEL OF FISCAL RESERVES FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to protect existing services, and; WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to be prepared for emergencies, and; WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to maintain good fiscal management and fiscal structure to operate a municipal corporation; NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District, San Bernardino, California does hereby resolve on this 2111 day of June 2018 that the level of fiscal reserves maintained by the Rancho Cucamonga Fire Protection District as of fiscal year end are committed to the goals as outlined in the District's Fund Balance policy, attached to this resolution as Exhibit A. PASSED, APPROVED, AND ADOPTED this 21St day of June 2018. Resolution No. FD 18 -XXX ATTACHMENT 2 Page 11 DATE: June 21, 2018 TO: President and Members of the Board of Directors FROM: John R. Gillison, City Manager INITIATED BY: Tamara L. Layne, Finance Director SUBJECT: CONSIDERATION OF APPROVAL OF REVISIONS TO AMENDED FISCAL YEAR 2017/18 APPROPRIATIONS. RECOMMENDATION: It is recommended that the Fire Board approve the revisions to the Amended Fiscal Year 2017/18 Appropriations as submitted. BACKGROUND: On May 2, 2018, the Fire Board approved the Amended Fiscal Year (FY) 2017/18 Appropriations. Subsequent to the approval of the amended appropriations, it was determined that certain line items within the amended appropriations would be insufficient to fund the remainder of the fiscal year. Consequently, it is necessary for staff to submit revisions to certain line items included in the amended appropriations. ANALYSIS: I n order to ensure that sufficient funding is available for all known expenditures, staff is requesting the Fire Board approve the revisions to the Amended FY 2017/18 Appropriations as detailed in the table below: REVISIONS TO AMENDED FISCAL YEAR 2017/18 APPROPRIATIONS It should be noted that the appropriation being requested for the PERS prefunding is necessary to enable staff to move funds held in the District's pooled investments account to its PARS Section 115 Public Agencies Post -Employment Benefits Trust, which is an irrevocable trust. The intent to contribute this amount to the trust was identified in the City's June 30, 2017 Comprehensive Annual Financial Report (CAFR) where it was included in the PERS Rate Stabilization reserve. The appropriation noted above provides staff with the authorization to move the funds to the irrevocable trust. The trust can only be used to directly pay CaIPERS for the District's pension obligations or to reimburse the District for payments made directly to CalPERS for pension obligations. FISCAL IMPACT: Page 12 Amended Revised Fund Description Object Description FY 2017/18 FY 2017/18 281 Fire Fund 4316 Weed Abatement Fees $ 62,000 $ 97,000 Fire Fund -Fire Prevention5300 Contract Services - Weed $ 60,000 $ 95,000 Abatement 281 Fire Fund - Administration 5091 PERS Prefunding $ - $ 1,300,000 It should be noted that the appropriation being requested for the PERS prefunding is necessary to enable staff to move funds held in the District's pooled investments account to its PARS Section 115 Public Agencies Post -Employment Benefits Trust, which is an irrevocable trust. The intent to contribute this amount to the trust was identified in the City's June 30, 2017 Comprehensive Annual Financial Report (CAFR) where it was included in the PERS Rate Stabilization reserve. The appropriation noted above provides staff with the authorization to move the funds to the irrevocable trust. The trust can only be used to directly pay CaIPERS for the District's pension obligations or to reimburse the District for payments made directly to CalPERS for pension obligations. FISCAL IMPACT: Page 12 The net impact across all funds requiring revisions is an increase of $1,300,000, as the weed abatement revenues and expenditures increases net to zero. COUNCIL GOAL(S) ADDRESSED: Not applicable. Page 13 DATE: June 21, 2018 TO: Mayor and Members of the City Council FROM: John R. Gillison, City Manager INITIATED BY: Tamara L. Layne, Finance Director SUBJECT: CONSIDERATION TO APPROVE THE FOLLOWING TO BE IN COMPLIANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT NO. 54: 1) UPDATED FUND BALANCE POLICYAND 2)ARESOLUTION COMMITTING TO THE LEVEL OF FISCAL RESERVES FOR THE CITY OF RANCH CUCAMONGA. RECOMMENDATION: It is recommended that the City Council approve the following to be in compliance with Governmental Accounting Standards Board (GASB) Statement No. 54: 1) updated Fund Balance Policy and 2) a resolution committing to the level of fiscal reserves for the City of Rancho Cucamonga. BACKGROUND: On a regular basis, the Governmental Accounting Standards Board (GASB) adopts new policies and procedures that apply to public entities. In February2009, GASB issued Statement No. 54, which applies to Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). Since 2011, in order to be in compliance with GASB 54, the City Council has approved a Fund Balance Policy and a resolution committing to the level of reserves for the City of Rancho Cucamonga. ANALYSIS: In order to accommodate any changes to these commitments that may become necessary due to changes in operations or changes in City Council goals, staff will annually bring this policy and resolution before the City Council for approval at the end of each fiscal year. The following updates (City- and District -related) have been made to the policy: • The "RC Sports Center vehicle and equipment replacement" reserve has been removed from the policy as the respective vehicle and equipment will be replaced through the City's Vehicle/Equipment Replacement Fund (Fund 712). Therefore, a separate reserve is not necessary. The Fund Balance Policy, in conjunction with the City General Fund Reserve Funding Goals Policy, provides guidelines for building City reserves in support of future needs for capital replacement, resiliency in the event of an economic downturn, and planned enhancements to the services and facilities available to the citizens of Rancho Cucamonga. The attached Resolution formally establishes the City of Rancho Cucamonga's fund balance commitments for the fiscal year ending June 30, 2018. Page 14 FISCAL IMPACT: None. COUNCIL GOAL(S) ADDRESSED: Not applicable. ATTACHMENTS: Description Fund Balance Policy Resolution Page 15 PURPOSE CUCAMONGA RANCHO CUCAMONGA FIRE PROTECTION DISTRICT FUND BALANCE POLICY POLICY NO.: -_ EFFECTIVE: June 15, 2011 REVISED: June 21, 2018 APPROVED: This Fund Balance Policy establishes the procedures for the reporting of unrestricted fund balance in the City General Fund and Fire District financial statements. Certain commitments and assignments of fund balance will help ensure that there will be adequate financial resources to protect the City against unforeseen circumstances and events such as revenue shortfalls and unanticipated expenditures. The policy also authorizes and directs the Finance Director to prepare financial reports which accurately categorize fund balance as per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. GENERAL POLICY Fund balance is essentially the difference between the assets and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City/Fire District is bound to honor constraints on the specific purposes for which amounts can be spent. • Nonspendable fund balance (inherently nonspendable) • Restricted fund balance (externally enforceable limitations on use) • Committed fund balance (self-imposed limitations on use) • Assigned fund balance (limitation resulting from intended use) • Unassigned fund balance (residual net resources) The first two components listed above are not addressed in this policy due to the nature of their restrictions. An example of nonspendable fund balance is inventory. Restricted fund balance is either imposed by law or constrained by grantors, contributors, or laws or regulations of other governments. This policy is focused on financial reporting of unrestricted fund balance, or the last three components listed above. These three components are further defined below. Committed Fund Balance The City Council (which also acts as the Board of Directors for the Rancho Cucamonga Fire Protection District), as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as Page 16 FUND BALANCE POLICY PAGE 2OF4 an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council/Fire Board removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council/Fire Board action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. • Chanaes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the City General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the Fire District's operating budget for the upcoming fiscal year. The specific uses of this commitment include: 1) the declaration of a state or federal state of emergency or a local emergency as defined in Rancho Cucamonga Municipal Code Section 2.36.020; or 2) a change in economic circumstances in a given fiscal year that results in revenues to the City/Fire District being insufficient to cover expenditures for one or more fiscal years. The City Council/Fire Board may, by the affirming vote of four members, change the amount of this commitment and/or the specific uses of these monies. • City Facilities Capital Repair The City's General Fund balance committed for City facilities capital repair and property acquisition is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for governmental activities. • Fire District Facilities Capital Repair The Fire District's fund balance committed for the Fire District facilities capital repair is hereby committed to a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for public safety -fire activities. • Working Capital The City's General Fund balance committed for Working Capital is established at a goal of a minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for Working Capital is established at a goal of a minimum of 50% of the District's operating budget for the upcoming fiscal year. • Self -Insurance The City's General Fund balance and the Fire District's fund balance committed for payment of Worker's Compensation, General Liability, and Employment Practices Liability claims is established at a minimum goal of eight times the City's and the District's total yearly SIRs for all types of insurance coverage. Page 17 FUND BALANCE POLICY PAGE 3OF4 • PASIS Worker's ComDensation Tail Claims The Fire District's fund balance committed for payment of outstanding Worker's Compensation claims remaining after the District's withdrawal from PASIS is established at a goal equal to the most recent fiscal year end Claims Cost Detail Report from the District's third -party administrator plus 15%. • Employee Leave Payouts The City's General Fund balance and the Fire District's fund balance committed for employee leave payouts as valued in accordance with the City's labor contracts as of the last day of the fiscal year. • Vehicle and Equipment Replacement The Fire District's fund balance committed for the replacement of fire safety vehicles and equipment as determined based on the District's replacement criteria is established at a minimum goal of 50% of District vehicle and equipment replacement value. • Law Enforcement The City's General Fund balance committed for public safety purposes, including operations, equipment, capital outlay, personnel, and booking fees. The funding goal for this reserve is the equivalent of 100% of the most recently approved Schedule A from the San Bernardino County Sheriff's Department. Assigned Fund Balance Amounts that are constrained by the City/Fire District's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This policy hereby delegates the authority to assign amounts to be used for specific purposes to the City Manager and/or Finance Director for the purpose of reporting these amounts in the annual financial statements. The following are a few non-exclusive examples of assigned fund balance. • Economic and Community Development Special Services The City's General Fund balance assigned for contracts, special services, or projects associated with Economic and Community Development (ECD) special projects or ECD initiatives/Council goals (such as economic strategy and Development Code contract services) as well as a one year value of staffing costs for Planning, Building and Safety, and Engineering (not including capital and project management). Page 18 FUND BALANCE POLICY PAGE 4OF4 • SDhere of Influence Issues Established to provide funds for a multi-year effort to analyze the physical constraints and opportunities within the sphere area, provide required environmental analysis, and plan for the eventual annexation of the remaining unincorporated areas within the City sphere of influence. This reserve also provides for ancillary costs related to annexation of the sphere area, including mitigation issues and legal challenges. Another area covered by this reserve is the creation of a multi -species habitat conservation plan as well as acquisition of habitat conservation land. • Dispatch System Acquisition The Fire District's fund balance committed to JPA membership for the District's current dispatch system. Unassianed Fund Balance These are residual positive net resources of the General Fund and Fire District funds in excess of what can properly be classified in one of the other four categories. Fund Balance Classification The accounting policies of the City/Fire District consider restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City/Fire District considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. This policy is in place to provide a measure of protection for the City/Fire District against unforeseen circumstances and to comply with GASB Statement No. 54. No other policy or procedure supersedes the authority and provisions of this policy. Page 19 RESOLUTION NO. 18 -XXX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA COMMITTING TO THE LEVEL OF FISCAL RESERVES FOR THE CITY OF RANCHO CUCAMONGA WHEREAS, the Rancho Cucamonga City Council desires to protect existing services, and; WHEREAS, the Rancho Cucamonga City Council desires to be prepared for emergencies, and; WHEREAS, the Rancho Cucamonga City Council desires to maintain good fiscal management and fiscal structure to operate a municipal corporation, and; WHEREAS, the Rancho Cucamonga City Council desires to maintain the financial strength required to obtain beneficial bond ratings for the City; NOW, THEREFORE, the City Council of the City of Rancho Cucamonga, California does hereby resolve on this 21St day of June 2018 that the level of fiscal reserves maintained by the City of Rancho Cucamonga as of fiscal year end are committed to the goals as outlined in the City's Fund Balance Policy, attached to this resolution as Exhibit A. PASSED, APPROVED, AND ADOPTED this 21St day of June 2018. Resolution No. 18 -XXX ATTACHMENT 2 Page 20 DATE: June 21, 2018 TO: Mayor and Members of the City Council FROM: John R. Gillison, City Manager INITIATED BY: Tamara L. Layne, Finance Director SUBJECT: CONSIDERATION TO APPROVE RESERVE FUNDING GOALS POLICY. UPDATED CITY GENERAL FUND RECOMMENDATION: Staff recommends that the City Council approve the attached updated City General Fund Reserve Funding Goals Policy. BACKGROUND: This City General Fund Reserve Funding Goals Policy establishes the methodology for the funding goals for each of the City General Fund reserves, including the replacement of vehicles, equipment, and computer equipment/technology. This policy, which was initially approved by the City Council in June 2012, formalizes the City General Fund reserves, establishes some new ones (if applicable), and sets quantifiable goals for each reserve. The following updates were made to the policy this year: • The "Information technology" reserve funding goal has been combined with the "Technology replacement" reserve into a newly titled "Community Development information technology" reserve. The funding source for the combined reserve will be a 7% Technology Fee effective January 1, 2019. For the first half of the fiscal year, the prior two funding sources will continue. The funding goal for the combined reserve will be to an amount equal to the implementation costs to replace and/or upgrade the City's land management software combined with three years' worth of the City's Cost Allocation Plan (CAP) allocations to support the annual costs associated with Department of Innovation and Technology staff time, maintenance contracts, and general administrative allocations for the City's land management software • The "PERS rate stabilization" reserve funding goal has been added to the policy to establish a funding goal for the PARS Post -Employment Benefits Trust shown as a restricted asset on the City's balance sheet. The funding goal for this reserve is established at a level equal to the value of projected rate increases identified in the respective annual CalPERS actuarial valuation for five fiscal years after the year of financial reporting. • The "RC Sports Center vehicle and equipment replacement" reserve has been removed from the policy as the respective vehicle and equipment will be replaced through the City's Vehicle/Equipment Replacement Fund (Fund 712). Therefore, a separate reserve is not necessary. ANALYSIS: In accordance with the policy, upon the completion of the City's annual audit, the Finance Director Page 21 prepares a schedule summarizing the funding status of each reserve for use by the City Manager in future budgetary planning. This policy does not apply to reserves determined to be non -spendable in accordance with the City's Fund Balance Policy nor does it apply to reserves that pertain to outstanding encumbrances (i.e., purchase orders) or unrealized gain on investments (GASB31) as of fiscal year end. FISCAL IMPACT: None. COUNCIL GOAL(S) ADDRESSED: Not applicable. ATTACHMENTS: Description City General Fund Reserve Funding Goals Policy Page 22 CUCAMONGA CITY GENERAL FUND RESERVE FUNDING GOALS POLICY POLICY NO.: -_ EFFECTIVE: June 13, 2013 REVISED: June 21, 2018 APPROVED: PURPOSE This City General Fund Reserve Funding Goals Policy establishes the methodology for the funding goals for each of the City General Fund reserves, including the replacement of vehicles, equipment, and computer equipment/technology. This policy does not apply to reserves determined to be nonspendable in accordance with the City's Fund Balance Policy nor does it apply to reserves that pertain to outstanding encumbrances (i.e., purchase orders) or unrealized gain on investments (GASB31) as of fiscal year end. Upon the completion of the City's annual audit, this policy directs the Finance Director to prepare a schedule summarizing the funding status of each reserve as of the audit date. This schedule will serve as a tool for budgetary planning for the funding of each reserve. GENERAL POLICY Following is a detailed description of the methodology for the funding goals for each of the City General Fund reserves referred to above. Self-insurance The funding goal for this reserve is established at eight times the Self -Insured Retention (SIR) in each program (Worker's Compensation, General Liability, and Employment Practices Liability) to allow for eight full limit claims in anyone year. The SIR is essentially the City's deductible in each program. Those numbers are calculated as follows: Worker's Comp ($250,000 SIR) is $2,000,000; General Liability ($500,000 SIR) is $4,000,000; and Employment Practices ($250,000 SIR) is $2,000,000. The total proposed reserve is $8,000,000. This level of reserves protects the City's assets by ensuring adequate funding in the event of multiple large claims against the City. Employee leave payouts The funding goal for this reserve is established at 100% of the current value of vacation, sick leave, and comp time payouts per the respective City MOUs. Page 23 CITY GENERAL FUND RESERVE FUNDING GOALS POLICY PAGE 2OF4 PERS rate stabilization The funding goal for this reserve is established at a level equal to the value of projected rate increases identified in the respective annual CalPERS actuarial valuation for five fiscal years after the year of financial reporting. The related reserve is restricted as the funds have been placed in the PARS Post -Employment Benefits Trust, which is a restricted asset on the City's balance sheet. City facilities capital repairs The funding goal for City facilities capital repair is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than buildings for governmental activities. Changes in economic circumstances The funding goal for changes in economic circumstances is established at a nine-month reserve, or 75% of the City General Fund operating budget for the upcoming fiscal year. Law enforcement The funding goal for this reserve is the equivalent of 100% of the most recently approved Schedule A from the San Bernardino County Sheriff's Department. Economic and communitv develoament saecial services The funding goal for this reserve is $4,500,000 to pay for contract services, special services, or projects associated with Economic and Community Development (ECD) special projects or ECD initiatives/Council goals (such as economic strategy and Development Code contract services) as well as a one-year value of staffing costs for Planning, Building and Safety and Engineering (not including capital and project management). Funding for this reserve would be provided by unspent revenue from Planning, Building and Safety, and Engineering (not including capital and project management) on an annual basis. Sphere of Influence issues The funding goal for this reserve is established at $10,000,000. The reserve is intended to provide funds for a multi-year effort to analyze the physical constraints and opportunities within the sphere area, provide required environmental analysis, and plan for the eventual annexation of the remaining unincorporated areas within the City sphere of influence. The eventual annexation requires pre -zoning, CEQA compliance, and a comprehensive service plan. The reserve amount reflects estimates of cost proposed by the City staff in consultation with experts familiar with the City process and geography. This reserve also provides for ancillary costs related to annexation of the sphere area, including mitigation issues and legal challenges. Another area covered by this reserve is the creation of a multi -species habitat conservation plan as well as acquisition of habitat conservation land. The overall funding goal will be increased each fiscal year based on the increase in the City's assessed valuation for the upcoming fiscal year per the City's property tax consultant. Page 24 CITY GENERAL FUND RESERVE FUNDING GOALS POLICY PAGE 3OF4 Working capital The funding goal for the City's General Fund working capital reserve is established at a goal of a minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year. Animal Center The funding goal for this reserve is equivalent to the most recently approved annual operating budget for the Animal Center, excluding capital expenditures and fund-raising/special events for the upcoming fiscal year. General Plan update The funding goal is equal to the cost to update the City's General Plan based on the most recent contract awarded, increased annually for the CPI as of each fiscal year end. Through December 31, 2018, the funding source for this reserve is 1.3% of all building permit fees and building inspection fees collected during the fiscal year. Beginning January 1, 2019, the funding source will be replaced with a 10% General Plan Maintenance Fee collected on all applicable Building and Safety Services Department and Planning Department services. City infrastructure The funding goal for City infrastructure is established at a minimum goal of 50% of infrastructure assets value comprised of road system (excluding right of way), monuments, storm drain system, and off-road trails system for governmental activities. Radio system acquisition This reserve is established to fund the future acquisition or replacement of the City's 800 MHz radios, as well as the City's proportionate share of the Countywide radio infrastructure. The funding goal is established at 100% of the replacement cost of the radios and 100% of the proportionate cost of the Countywide radio infrastructure. Mobile Home Park Program The Building and Safety Department is responsible for enforcing the State mobile home laws and has adopted the State's related schedule of fees. One of the fees collected is retained by the City to cover the cost of mandatory inspections performed by the Building and Safety Department in accordance with Title 25. The fee also covers the cost of educational materials and related printing services. The funding goal for this reserve is equal to the cost of a contract inspector for the mobile home park inspections for eight parks within the City. Vehicle and equipment replacement The funding goal is established at 105% of capital assets value comprised of vehicles and equipment for governmental activities. Page 25 CITY GENERAL FUND RESERVE FUNDING GOALS POLICY PAGE 4OF4 ComDuter equipment/technoloov replacement The funding goal is established at 105% of capital assets value comprised of computer equipment/technology for governmental activities. Community Development information technologv The funding goal of this reserve is equal to the implementation costs to replace and/or upgrade the City's land management software (Accela) combined with three years' worth of the City's Cost Allocation Plan (CAP) allocations to support the annual costs associated with Department of Innovation and Technology staff time, maintenance contracts, and general administrative allocations for the City's land management software. Through December 31, 2018, the funding sources for this reserve include a flat 5.0% technology charge on all applicable Building and Safety Services Department, Engineering Department, and Planning Department Fees, also known as the Technology Fee, and a 6.67% share of all building permit fees and building inspection fees collected during the fiscal year. Beginning January 1, 2019, the two funding sources will be collapsed into one 7% Technology Fee collected on all applicable Building and Safety Services Department, Engineering Department, and Planning Department services. Page 26 DATE: TO: FROM: INITIATED BY: SUBJECT: June 21, 2018 Mayor and Members of the City Council John R. Gillison, City Manager Tamara L. Layne, Finance Director CONSIDERATION OF APPROVAL OF REVISIONS TO AMENDED FISCAL YEAR 2017/18 APPROPRIATIONS. RECOMMENDATION: It is recommended that the City Council approve the revisions to the Amended Fiscal Year 2017/18 Appropriations as submitted. BACKGROUND: On May 2, 2018, the City Council approved the Amended Fiscal Year (FY) 2017/18 Appropriations. Subsequent to the approval of the amended appropriations, it was determined that certain line items within the amended appropriations would be insufficient to fund the remainder of the fiscal year. Consequently, it is necessary for staff to submit revisions to certain line items included in the amended appropriations. ANALYSIS: In order to ensure that sufficient funding is available for all known expenditures, staff is requesting the City Council approve the revisions to the Amended FY 2017/18 Appropriations as detailed in the table below: REVISIONS TO AMENDED FISCAL YEAR 2017/18 APPROPRIATIONS Page 27 Amended Revised Fund Description Object Description FY 2017/18 FY 2017/18 025 Capital Reserve 5650 J L 1896 - Sports Center Relocation $ - $ 750,000 174 Gas Tax 5650 JL 1022 - Local St. Rehab (Various) $ 1,214,500 $ 1,614,500 5650 JL 1929 - Jersey: Haven-Roch. $ 815,000 $ 515,000 Rehab 290 Library Fund 4401 1 nterest Earnings $ 66,600 $ 67,020 8299 Transfer I n -Fund 299 $ - $ 53,050 Library Fund - Second 5200 Operations & Maint. $ 16,000 $ 34,500 Story 299 Library Dev. Fund 4401 1 nterest Earnings $ 790 $ - 4575 Exhibit Sales $ 20,000 $ - 9290 Transfer Out -Fund 290 $ - $ 53,050 361 Justice Assist. Grant 4740 Grant Income $ 45,090 $ 47,990 5215 O&M -Computer Equip $ - $ 2,900 712 Vehicle/Equip Rplcmnt 5650 J L 1896 - Sports Center Relocation $ 750,000 $ - Page 27 FISCAL IMPACT: The net impact across all funds requiring revisions is an increase of $35,580 in revenues and an increase of $174,450 in expenditures. COUNCIL GOAL(S) ADDRESSED: Not applicable. Page 28 DATE: June 21, 2018 TO: Mayor and Members of the City Council FROM: John R. Gillison, City Manager INITIATED BY: Tamara L. Layne, Finance Director Noah Daniels, Finance Manager SUBJECT: CONSIDERATION OF A RESOLUTION AMENDING AN APPROVED INTERFUND LOAN FROM THE CAPITAL RESERVE FUND (FUND 025) TO THE GENERAL FUND (FUND 001)AND TO THE SPORTS COMPLEX FUND (FUND 700) FOR THE PURCHASE AND INSTALLATION OF SOLAR PHOTOVOLTAIC SYSTEMSAT CENTRAL PARKAND EPICENTER. RECOMMENDATION: Staff recommends the City Council adopt a Resolution amending the monthly payment amounts for an approved interfund loan from the Capital Reserve Fund to the General Fund and Sports Complex Fund for the purchase and installation of solar photovoltaic systems at Central Park and Epicenter. BACKGROUND: On September 2, 2015, the City Council authorized $5,594,768 to be loaned from the Capital Reserve Fund to the General Fund ($2,379,156) and to the Sports Complex Fund ($3,215,612) for the purchase and installation of solar photovoltaic systems at Central Park and the Epicenter, respectively. Per that loan agreement, the General Fund and the Sports Complex Fund would begin repaying the Capital Reserve Fund in the month subsequent to the month of project completion, and the loan would be repaid in 20 years. The installations of the solar photovoltaic systems at Central Park and the Epicenter were completed in November 2016 and July 2016, respectively. As a result, monthly payments of $13,545 for the General Fund and $17,100 for the Sports Complex Fund to the Capital Reserve Fund have begun. ANALYSIS: The Capital Reserve Fund provided $2,379,156 to the General Fund and $3,215,612 to the Sport Complex Fund based on cost estimates for the purchase and installation of solar photovoltaic systems at Central Park and the Epicenter, respectively, at the time the loan agreement was approved. Subsequent to the completion of the projects, the loan amounts were trued -up to reflect the actual project costs, which were below budget. This resulted in loan principal reductions of approximately $753,520 and $665,685 for the General Fund and Sports Complex Fund, respectively. Per the loan agreement, the General Fund and the Sports Complex Fund are required to make previously determined monthly loan payments to the Capital Reserve Fund over 20 years. However, as a result of the significant loan principal reductions noted above, the loans would actually be repaid approximately 5 Page 29 years earlier, if the current debt service schedule is maintained. Even though the General Fund and the Sports Complex Fund periodically receive rebates and incentives from Southern California Edison and RCMU and also realize energy costs savings that provide additional cash flow to partially fund the monthly debt service payments, a reduction in the monthly loan payments would greatly benefit the two operating budgets. Therefore, staff has recalculated the monthly payments for the General Fund and the Sports Complex Fund to repay the revised principal amount to the Capital Reserve Fund over 20 years to be $8,870 and $11,880, respectively. These revised payments have been prospectively calculated and would begin in Fiscal Year 2018/19. No other terms of the loan agreement would need to be changed. FISCAL IMPACT: Annual debt service payments from the General Fund and the Sports Complex Fund to the Capital Reserve Fund will decrease by $56,100 and $62,640, respectively. The revised monthly payments for the General Fund and the Sports Complex Fund have been reflected in the proposed budgets for Fiscal Year 2018/19. COUNCIL GOAL(S) ADDRESSED: N/A ATTACHMENTS: Description Attachment i - Kesolution Page 30 RESOLUTION NO. 18 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AMENDING AN APPROVED INTERFUND LOAN FROM THE CAPITAL RESERVE FUND TO THE GENERAL FUND AND TO THE SPORTS COMPLEX FUND FOR THE PURCHASE AND INSTALLATION OF SOLAR PHOTOVOLTAIC SYSTEMS AT CENTRAL PARK AND EPICENTER WHEREAS, on September 2, 2015, the City Council adopted Resolution No. 15-170 authorizing an interfund loan of $5,594,768 from the Capital Reserve Fund for the purchase and installation of solar photovoltaic systems to the General Fund ($2,379,156) for Central Park and to the Sports Complex Fund ($3,215,612) for the Epicenter; and WHEREAS, the actual costs associated with the purchase and installation of solar photovoltaic systems at Central Park and the Epicenter were below costs estimates upon completion; and WHEREAS, in accordance with Resolution No. 15-170, payments of $13,545 for the General Fund and $17,100 for the Sports Complex Fund shall be made monthly on the 15th day of each calendar month subsequent to the month of project completion, and commencing on July 15, 2023, payments for theSports Complex Fund will be reduced to $15,000 per month; and WHEREAS, in order for the loan to be fully due and payable within 20 years from when the project is fully operational and yielding energy savings, the monthly payments for the General Fund and the Sports Complex Fund should be reduced to $8,870 and $11,880, respectively. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, to amend Resolution No. 15-170 as follows: 1. Commencing on July 15, 2018, payments of $8,870 for the General Fund and $11,880 for the Sports Complex Fund shall be made monthly on the 15th day of each calendar month. PASSED, APPROVED, AND ADOPTED this 21St day of June 2018. Resolution No. 18 -XXX — Page 1 of 1 ATTACHMENT #%ge 31 DATE: June 21, 2018 TO: President and Members of the Board of Directors FROM: John R. Gillison, City Manager INITIATED BY: Ivan Rojer, Fire Chief Tamara L. Layne, Finance Director Michelle Cowles, Management Aide SUBJECT: CONSIDERATION TO ADOPT THE GENERAL FUND PRELIMINARY BUDGET, APPROVE A RESOLUTION ADOPTING THE GENERAL FUND APPROPRIATIONS LIMIT FOR FISCAL YEAR 2018/19, AND SET APPROVAL OF A FINAL BUDGET FOR THE JULY 18, 2018 BOARD MEETING. RECOMMENDATION: Staff recommends that the Fire Board adopt the Rancho Cucamonga Fire Protection District General Fund Preliminary Budget in the amount of $41,624,660 which is a combination of $27,307,480 General Fund operational expenditures, $90 Fire Technology Fee Fund expenditures, and $14,317,090 Capital Reserve expenditures; approve a resolution adopting the General Fund's Article XI I I B Appropriations Limit in the amount of $39,262,382 for Fiscal Year 2018/19; and set approval of a final budget for the July 18, 2018 Board Meeting. BACKGROUND: The Fire Protection District Law (Health & Safety Code Section 13800, et seq.), Chapter 7, requires the Fire Board on or before June 30 of each year, to adopt a preliminary budget. On or after July 1 of each year, the amounts set forth in the preliminary budget, except obligations for fixed assets and new permanent employee positions, are deemed appropriated until the Board adopts the final budget. On or before October 1 of each year, after making any changes in the preliminary budget, the Board shall adopt a final budget. The final budget shall establish its appropriation limit pursuant to the State of California Constitution, Article XI I I B (Gann Limit). Additionally, a copy of the final budget must be forwarded to the auditor of each county in which the district is located. As noted above, the Government Code requires that an appropriations limit be established annually by the Fire Board based on the final budget. Historically, the District's final budget has mirrored the preliminary budget. As such, the District's appropriations limit is calculated in conjunction with the adoption of the preliminary budget. The factor used to develop the appropriations limit is the C.P.I. change and the change in the City's population per the State of California Department of Finance. ANALYSIS: On June 7, 2018, the Fire Board held a workshop to review the appropriation requests for Fiscal Year Page 32 2018/19 which included specific discussion regarding the preliminary budget. The proposed budget continues to meet the Council/Fire Board direction of operating independently. The Fire District was able to achieve a proposed, balanced operational budget through a combination of moderate revenue growth and continued improvements of operational and administrative efficiencies. Based on the factors of the Gann Limit (a C.P.I. change of 3.67% and a population change of 0.79%) per the State of California Department of Finance, the District's Fiscal Year 2018/19 General Fund's appropriations limit is $39,262,382. The District's Fiscal Year 2018/19 General Fund appropriations subject to this limit total $20,910,240. It is anticipated that the District will be at 53.26% of its Gann Limit at June 30, 2019. The attached Resolution adopts the annual appropriations limit as required by Article XI I IB of the State Constitution. Please refer to the City Manager's Executive Summary for specific details regarding the Fire District's General Fund Preliminary Budget. The advertised public hearing for adoption of the Fire District General Fund Final Budget is set for July 18, 2018. FISCAL IMPACT: The actions taken by the Fire Board will establish the Rancho Cucamonga Fire Protection District's preliminary spending plan for Fiscal Year 2018/19 and ensure the District's compliance with the Gann Limit. COUNCIL GOAL(S) ADDRESSED: Delivery of vital fire and life safety services to residents, visitors, and businesses through an innovative combination of risk reduction and emergency response programs. ATTACHMENTS: Description ATTACHMENT 1 - Resolution Page 33 ATTACHMENT 1 RESOLUTION NO. FD 18-xxx A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING A GENERAL FUND APPROPRIATIONS LIMIT FOR FISCAL YEAR 2018/19 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION WHEREAS, Article XIIIB of the Constitution of the State of California provides that the total annual appropriations subject to limitation of the State and of each local government for the prior year be adjusted for change in the cost of living and population except as otherwise provided in Sections (5), (7) and (8) of said Article XIII -B. These exclusions are: Debt Service Funds, Revenue Bonds, Federal Funds and Grants, Contingencies, Emergencies, Enterprise Funds, Capital Improvement Carry -Overs, Capital Equipment, Intra -Governmental Service Funds, Reserves for Workers Compensation, Long -Term Disability, Retirement, Unemployment and other reserve funds that are deemed reasonable and proper per the aforementioned sections; and WHEREAS, pursuant to said Article XIII -B of the Constitution of the State of California, the Board of Directors of the Rancho Cucamonga Fire Protection District deems it to be in the best interest of the Rancho Cucamonga Fire Protection District to establish a General Fund appropriations limit for Fiscal Year 2018/19; and WHEREAS, the Rancho Cucamonga Fire Protection District has determined that said General Fund's appropriations limit for Fiscal Year 2018/19 be established in the amount of $39,262,382. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Rancho Cucamonga Fire Protection District that a General Fund appropriations limit for Fiscal Year 2018/19 pursuant to Article XIII -B of the Constitution of the State of California be established in the amount of $39,262,382 and the same is hereby established. BE IT FURTHER RESOLVED that said appropriations limit herein established may be changed as deemed necessary by resolution of the Board of Directors. PASSED, APPROVED, AND ADOPTED this 21St day of June 2018. Page 34 DATE: June 21, 2018 TO: President and Members of the Board of Directors FROM: John R. Gillison, City Manager INITIATED BY: Ivan Rojer, Fire Chief Tamara L. Layne, Finance Director Michelle Cowles, Management Aide SUBJECT: CONSIDERATION TO APPROVE RESOLUTIONS ADOPTING A BUDGET IN THE AMOUNT OF $6,065,870 AND APPROVING THE APPROPRIATIONS LIMIT IN THE AMOUNT OF $14,956,165 FOR FISCAL YEAR 2018/19 IN COMMUNITIES FACILITIES DISTRICT (CFD) NO. 85-1. RECOMMENDATION: Staff recommends that the Fire Board adopt the proposed resolutions approving the Mello -Roos CFD No. 85-1 annual budget for Fiscal Year 2018/19 in the amount of $6,065,870 and the Appropriations Limit in the amount of $14,956,165. BACKGROUND: Since Fiscal Year 1986/87, the Board has annually adopted a CFD budget to provide for operations and maintenance costs attributable to providing fire protection services within CFD No. 85-1. The proposed budget for Fiscal Year 2018/19 provides funding for a portion of the personnel and operational costs necessary to maintain existing fire and life safety services within CFD boundaries. The remaining operational and maintenance costs within the CFD are provided through the Fire District's General Fund budget. When the Fire District's CFD No. 85-1 was approved by the voters in 1985, an appropriations limit was established at $1,775,000 (1985 costs for operations and maintenance). To adjust the maximum spending authority (appropriations limit) to meet increased costs for operations and maintenance, the voters authorized the District to annually adjust the limit. This adjustment is based upon the same methodology used in calculating public agency Prop. 4 spending limits under Article XII IB of the State of California Constitution. The factors used to develop the appropriations limit are the C.P.I. change and the change in the City's population. ANALYSIS: On June 7, 2018, the Fire Board held a workshop to review the appropriation requests for Fiscal Year 2018/19. The attached resolution adopts that one-year budget following the Board's deliberations at the publicly held budget study session. Based on the factors of the Gann Limit (a C.P.I. change of 3.67% and a population change of 0.79%) per the State of California Department of Finance, the District's CFD No. 85-1 Fiscal Year 2018/19 Page 35 appropriations limit is $14,956,165. The District's CFD No. 85-1 Fiscal Year 2018/19 appropriations subject to this limit total $6,095,920. It is anticipated that the District will be at 40.76% of its Gann Limit at June 30, 2019. The attached Resolution adopts the annual appropriations limit as required by Article XI I IB of the State Constitution. FISCAL IMPACT: The proposed resolutions establish CFD 85-1's spending plan for Fiscal Year 2018/19 and ensures the CFD's compliance with Article XI I I B of the State Constitution. COUNCIL GOAL(S) ADDRESSED: Delivery of vital fire and life safety services to residents, visitors, and businesses through an innovative combination of risk reduction and emergency response programs. ATTACHMENTS: Description ATTACHMENT 1 -Resolution (Budget Adoption) ATTACHMENT 2 - Resolution (Appropriations Limit) Page 36 ATTACHMENT 1 RESOLUTION NO. FD 18-xxx A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR MELLO-ROOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2018/19 WHEREAS, a special election was held in the Mello -Roos Community Facilities District No. 85-1 (the "Community Facilities District") of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, the "District"), on Tuesday, December 10, 1985; and WHEREAS, because of the election, more than two-thirds (2/3) of the qualified electors voted in favor of a proposition to authorize the levy of a special tax for fire suppression services and facilities, to establish an appropriations limit based upon changes in cost of living and changes in population; and WHEREAS, the Board of Directors has received and reviewed a budget for Fiscal Year 2018/19 for the Community Facilities District. NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: Section 1. Adoption of Budget. The Board of Directors hereby approves and adopts the budget designated: Mello -Roos Community Facilities District No. 85-1 Annual Budget for Fiscal Year 2018/19 a copy of said budget being on file in the office of the Community Facilities District and available for public inspection. Section 2. Filing of Budget. The Secretary is hereby authorized and directed to forward a certified copy of this resolution and a copy of the budget to the Office of the Auditor -Controller for the County of San Bernardino. PASSED, APPROVED, and ADOPTED this 21 sr day of June 2018. Resolution No. FD 17-012 Page 37 ATTACHMENT 2 RESOLUTION NO. FD 18-xxx A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR MELLO-ROOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2018/19 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION WHEREAS, a special election was held in the Mello -Roos Community Facilities District No. 85-1 (the "Community Facilities District") of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, the "District"), on Tuesday, December 10, 1985; and WHEREAS, as a result of the election, more than two-thirds (2/3) of the qualified electors voted in favor of a proposition to authorize the levy of a special tax for fire suppression services and facilities, to establish an appropriations limit and to annually adjust the special tax and appropriations limit based upon changes in cost of living and changes in population; and WHEREAS, the Board of Directors desires to establish the appropriations limit for the Community Facilities District 85-1 for Fiscal Year 2018/19; NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: SECTION 1. Appropriations Limit. This Board of Directors hereby establishes the Fiscal Year 2018/19 appropriations limit for the Community Facilities District No. 85-1 at $14,956,165 based on the factors of the Gann limit (a C.P.I. change of 3.67% and a population change of 0.79%) per the State of California Department of Finance. SECTION 2. Approval of Electorate. This Board of Directors hereby finds and determines that the foregoing appropriations limit has been established by the qualified electorate at a special election held on December 10, 1985, in the manner provided by law. SECTION 3. Filing. The Secretary is hereby authorized and directed to file a certified copy of this resolution with the Board of Supervisors for San Bernardino County and with the office of the Auditor -Controller for the State of California. PASSED, APPROVED and ADOPTED this 21St day of June 2018. Resolution No. FD 17-013 Page 38 DATE: June 21, 2018 TO: President and Members of the Board of Directors FROM: John R. Gillison, City Manager INITIATED BY: Ivan Rojer, Fire Chief Tamara L. Layne, Finance Director Michelle Cowles, Management Aide SUBJECT: CONSIDERATION TO APPROVE RESOLUTIONS ADOPTING A BUDGET IN THE AMOUNT OF $2,445,940 AND APPROVING THE APPROPRIATION LIMIT IN THE AMOUNT OF $3,786,430 FOR FISCAL YEAR 2018/19 IN COMMUNITY FACILITIES DISTRICT (CFD) NO. 88-1. RECOMMENDATION: Staff recommends that the Fire Board adopt resolutions approving the budget in the amount of $2,445,940 and approving the appropriations limit in the amount of $3,786,430 which is an amount equal to the maximum authorized special taxes which could be levied in Fiscal Year 2018/19 in Mello -Roos Community Facilities District No. 88-1. BACKGROUND: On April 4, 1989, the qualified voters approved the formation of Mello -Roos Community Facilities District No. 88-1 and authorized the District to annually levy a special tax to provide for fire protection services within northeast Etiwanda. On May 19, 1989, the Board adopted an ordinance authorizing the levy of a special tax in CFD 88-1. The ordinance authorizes the District, by resolution, to annually levy the special tax for purposes of land acquisition, fire station construction, purchase of equipment and operations and maintenance costs (which includes personnel) to provide fire protection services within CFD 88-1. Fiscal Year 2018/19 is the thirtieth (30) consecutive year the District has levied a special tax to provide required revenues for capital improvements (land, fire station facility, equipment) and fire protection services (personnel, operations and maintenance) within this CFD. Because CFD 88-1 does not currently generate sufficient funds to support the total annual staffing costs, supplemental funding is necessary through the Fire District's General Fund budget. ANALYSIS: On June 7, 2018, the Fire Board held a workshop to review the appropriation requests for Fiscal Year 2018/19. The attached Resolution adopts that one-year budget following the Board's deliberations at the publicly held budget study session. Based on the factors of the Gann Limit (a C.P.I. change of 3.67% and a population change of 0.79%) per the State of California Department of Finance, the District's CFD No. 88-1 Fiscal Year 2018/19 appropriations limit is $3,786,430. The attached Resolution adopts the annual appropriations limit as Page 39 required by Article XI I IB of the State Constitution. FISCAL IMPACT: The proposed resolutions establish CFD 88-1's spending plan for Fiscal Year 2018/19 and ensures the CFD's compliance with Article XI I IB of the State Constitution. COUNCIL GOAL(S) ADDRESSED: Delivery of vital fire and life safety services to residents, visitors, and businesses through an innovative combination of risk reduction and emergency response programs. ATTACHMENTS: Description ATTACHMENT 1 - Resolution (Budget Adoption) ATTACHMENT 2 - Resolution (Appropriations Limit) Page 40 ATTACHMENT 1 RESOLUTION NO. FD 18-xxx A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR COMMUNITY FACILITIES DISTRICT NO. 88-1 FOR FISCAL YEAR 2018/19 WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, hereinafter referred to as the "legislative body") has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello - Roos Community Facilities Act of 1982", as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. This Community Facilities is designated as COMMUNITY FACILITIES DISTRICT NO. 88-1 (hereinafter referred to as the "District"); and WHEREAS, this legislative body has received and reviewed a budget for Fiscal Year 2018/19 for the District. NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: Section 1. Adoption of Budget. The Board of Directors hereby approves and adopts the budget designated: "Mello -Roos Community Facilities District No. 88-1 Annual Budget for Fiscal Year 2018/19" and is on file in the office of the District and available for public inspection. PASSED, APPROVED, and ADOPTED this 21 S` day of June 2018. Page 41 ATTACHMENT 2 RESOLUTION NO. FD 18 -XXX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR COMMUNITY FACILITIES DISTRICT NO. 88-1 FOR FISCAL YEAR 2018/19 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, hereinafter referred to as the "legislative body") has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello -Roos Community Facilities Act of 1982", as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 88-1 (hereinafter referred to as the "District"); and WHEREAS, as a result of such election, the qualified electors of the District authorized the establishment of an Article XIII -B appropriations limit for the District equal to the maximum authorized special taxes which may be levied in any fiscal year; and WHEREAS, this legislative body desires to establish the appropriations limit for the District for Fiscal Year 2018/19. NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: SECTION 1. Appropriations Limit. This legislative body hereby establishes the appropriations limit for Community Facilities District No. 88-1 for Fiscal Year 2018/19 in an amount equal to $3,786,430. SECTION 2. Approval by Electorate. This legislative body hereby finds and determines that the foregoing appropriations limit has been authorized by the qualified electors of the District at a special election held on April 4, 1989, in the manner provided by law. PASSED, APPROVED, and ADOPTED this 21ST day of June 2018. Resolution No. FD 18-xxx Page 42 DATE: June 21, 2018 TO: Mayor and Members of the City Council FROM: John R. Gillison, City Manager INITIATED BY: Tamara L. Layne, Finance Director SUBJECT: CONSIDERATION TO ADOPT THE FISCAL YEAR 2018/19 BUDGET AND THE ARTICLE XIIB APPROPRIATIONS LIMIT. RECOMMENDATION: It is recommended that the City Council approve the resolutions adopting the Fiscal Year 2018/19 Budget and the Article XI I I B Appropriations Limit for Fiscal Year 2018/19. BACKGROUND: Each year, the City of Rancho Cucamonga proposes a one-year program of service through the adoption of the annual budget. In conjunction with the adoption of the annual budget, the State of California Constitution, Article XI I I B, requires that an appropriations limit be established annually by the City Council. The factor used to develop the appropriations limit is the C.P.I. change and the change in the City's population per the State of California Department of Finance. ANALYSIS: On June 7, 2018, the City Council held a workshop to review the appropriation requests for Fiscal Year 2018/19. The attached resolution adopts that one-year budget following the Council's deliberations at the publicly held budget study session. The budget is summarized as follows: FISCAL YEAR 2018/19 BUDGET General Fund $ 83,944,400 Library Services $ 5,126,230 Special Funds $ 90,743,270 Total $179,813,900 Based on the factors of the Gann Limit (a C.P.I. change of 3.67% and a population change of 0.79%), the City's Fiscal Year 2018/19 appropriations limit is $84,216,611. The City's Fiscal Year 2018/19 appropriations subject to this limit total $66,855,020. It is anticipated that the City will be at 79.38% of its Gann Limit at June 30, 2019. The additional resolution adopts the annual appropriations limit as required by Article XI I I B of the State Constitution. FISCAL IMPACT: The proposed resolutions establish the City of Rancho Cucamonga's spending plan for Fiscal Year Page 43 2018/19 and ensure the City's compliance with Article XI I I B of the State Constitution. COUNCIL GOAL(S) ADDRESSED: Not applicable. ATTACHMENTS: Description Attachment 1 - Resolution (Budget Adoption) Attachment 2 - Resolution (Appropriations Limit) Page 44 RESOLUTION NO. 18 -XXX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA ADOPTING THE CITY'S FISCAL YEAR 2018/19 BUDGET WHEREAS, the Rancho Cucamonga City Council held one workshop to review the appropriation requests for Fiscal Year 2018/19 on June 7th, 2018, and; WHEREAS, the Rancho Cucamonga City Council held a public meeting on the General City Budget, and; WHEREAS, this public meeting was noticed in accordance with applicable laws and held on June 21, 2018; NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Rancho Cucamonga, California does hereby resolve on this 21St day of June 2018, as follows: SECTION 1: Adoption of Fiscal Year 2018/19 Budget. The City of Rancho Cucamonga budget for Fiscal Year 2018/19, on file in the office of the Finance Director, is hereby adopted in the amount of $179,813,900. This budget total includes appropriations for both the general and other special purpose funds. SECTION 2: Transfers of Funds Between and/or Within Appropriations. The City Council of the City of Rancho Cucamonga may transfer funds between funds or activities set forth in the budget. The City Manager may transfer funds between appropriations within any fund as set forth in the budget and may transfer appropriations between activities within any cost center in the same fund. SECTION 3: Transfers of Funds Between Funds. Transfers of funds between funds as shown throughout the fund transfer sections of the budget shall be made as expenditures warrant such transfers. SECTION 4: Disbursements. The City Manager and the Finance Director, or the duly designated representative, are hereby empowered and authorized to disburse funds pursuant to appropriations provided for in the Fiscal Year 2018/19 Budget, and have the responsibility to establish procedures and to administratively implement and control the budget on all matters, except direct expenditures by Councilmembers which require Council approval. SECTION 5: Additional Appropriations. The City Council may amend this budget to add or delete appropriations. SECTION 6: Personnel. The City Manager is hereby empowered and authorized to develop and fill additional positions as deemed necessary to conduct City operations provided funding is available in the budget. PASSED, APPROVED, AND ADOPTED this 211t day of June 2018. Resolution No. 18 -XXX ATTACHMENT 1 Page 45 RESOLUTION NO. 18 -XXX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA ESTABLISHING AN APPROPRIATIONS LIMIT PURSUANT TO ARTICLE X11113 OF THE CALIFORNIA STATE CONSTITUTION FOR FISCAL YEAR 2018/19 WHEREAS, Article X111B of the State of California provides that the total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit of such entity of government for the prior year adjusted for changes in the cost of living and population except as otherwise provided in said Article XIIIB, and; WHEREAS, pursuant to said Article X11113 of the Constitution of the State of California, the City Council of the City of Rancho Cucamonga deems it to be in the best interests of the City of Rancho Cucamonga to establish an appropriations limit for Fiscal Year 2018/19, and; WHEREAS, the Finance Director of the City of Rancho Cucamonga has determined that said appropriations limit for Fiscal Year 2018/19 be established in the amount of $84,216,611. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Rancho Cucamonga, California does hereby resolve that an appropriations limit for Fiscal Year 2018/19 pursuant to Article XII IB of the Constitution of the State of California be established in the amount of $84,216,611 and the same is hereby established. BE IT FURTHER RESOLVED that said appropriations limit herein established may be changed as deemed necessary by resolution of the City Council. PASSED, APPROVED, AND ADOPTED this 21St day of June, 2018. Resolution No. 18 -XXX ATTACHMENT 2 Page 46