Report to Mayor and City Council
Tuesday, December 15, 2020
Discussion
SUBJECT:
Title
UPDATED FINANCIAL REPORT OF THE GENERAL FUND RESERVE FOR THE FIRST QUARTER OF FISCAL YEAR 2020-2021
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I. SUMMARY
The Finance Department performs an ongoing review of the City's financial performance and provides updates on the General Fund results to the Mayor and the City Council. This report presents a year-to-date update on the City's General Fund reserve in the current Fiscal Year (2020-2021).
II. RECOMMENDATION
Recommendation
RECEIVE and FILE Updated Financial Report of the General Fund Reserve.
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
The City of Carson has projected it would end Fiscal Year 2019-2020 with an estimated General Fund Balance Reserve of $39.4 million, which is $16 million above the City Council's reserve policy requirements. The audited fund balance will be available upon the completion of the ongoing financial audit, December 30, 2020. Fund balance is the City's "reserve"; it provides a measure of the City's ability to mitigate future risks associated with providing important services in times of economic uncertainties. To provide funding for emergencies, the City Council has adopted a policy that requires the fund balance to be maintained at a minimum level equal to 20% of the General Fund's budget. The chart below provides a five year fund balance trend for the General Fund.
On Friday November 20th, 2020, with the Land Exchange of the City Yard Real Property, the City added $5,305,473 into the City's General Fund, bringing the City's reserve fund up to $43.2 million.
On June 18, 2019, the City Council approved the Land Exchange of the City Yard Real Property at 2390/2400 E. Dominguez for the Prologis Targeted U.S. Logistics Fund, L.P. owned property at 18620 S Broadway & 18601 S Main Street, Carson. The appraisals determined that the fair market value of the City Property is $25,8...
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