pages: FinanceAndManagementCommittee/2014-07-22.pdf, 3
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FinanceAndManagementCommittee | 2014-07-22 | DRAFT *Finance & Management Meeting Minutes July 22, 2014 Committee 4 Subject: Rainy Day Fund & Excess RETT Policy From: Office Of The City Administrator Recommendation: Receive A Report And Adopt Recommendations On Establishing A Rainy Day Fund And Changing The Definition Of Excess Real Estate Transfer Tax, And Related Amendments To The City's Financial Policies 13-0614-1 A motion was made by Chair Schaaf, seconded by Council President Kernighan, that this matter be * Approve as Amended the Recommendation of Staff, and Forward to the * Special Meeting of the Oakland City Council, due back on July 29, 2014 There were 4 speakers on this item The motion carried by the following vote: Votes: Councilmember Aye: Member Brooks, President Pro Tempore Kaplan, Council President Kernighan and Chair Schaaf The Committee directed staff to draft an Ordinance amending Ordinance No. 13170 and establishing a Rainy Day Policy for Funding Debt and Unfunded Liabilities, as well as funding a newly established Vital Services Stabilization Reserve, with the following features: 1. Amend the definition of Excess RETT to the amount exceeding fourteen percent (14%) of that year's general tax revenues. 2. Add the creation of a new Rainy Day Policy with the following features: a. When projected Real Estate Transfer Tax (RETT) exceeds fourteen percent (14%) of projected total general tax revenues, twenty-five percent of that Excess RETT shall be allocated through the budget process: half to a newly established Vital Services Stabilization Reserve and half to pay down debt or unfunded liabilities. b. Fifty percent (50%) of any unallocated General Fund balance, as projected by the 3rd Quarter Revenue and Expenditure Report shall be allocated in the following budget as follows: half to the Vital Services Stabilization Reserve and half to pay down debt or unfunded liabilities. c. With regard to allocating funds to pay down debt or unfunded liabilities, which shall be clearly defined, as part of the budget process, staff shall present its analysis and recommendations to the Council that it believes are in the best long-term financial interest of the city. d. Funding the Vital Services Stabilization Reserve may be reduced once it has accumulated a balance that exceeds 15% of general fund revenues. e. In years when the city projects that total General Purpose Fund revenues for the upcoming fiscal year will be less than the current year's revenues, or anytime service reductions (such as layoffs or furloughs) are contemplated, use of this fund must be considered to mitigate such cuts, and the adopted budget may appropriate funds from the Vital Services Stabilization Reserve to preserve city operations; however, the budget may not appropriate more than sixty percent of the reserve balance in any year. f. Any deviations from this policy, including the need to address unusual and temporary increases in baseline expenditures, must be made by Resolution City of Oakland Page 3 Printed on 9/11/14 | 3 | FinanceAndManagementCommittee/2014-07-22.pdf |