At the June 23rd, 2020 City Council meeting, Finance staff brought to Council a resolution to amend the budget for 2019-2020.
During the year end review, staff realized there were two Finance Department items that should have been included in the budget amendment resolution. Finance staff are bringing to Council a budget amendment for approval of the two items as follows:
1) When the new Risk Management Internal Service Fund was created during 2019-2020, the investment in the Northern California Cities Self Insurance Fund (NCCSIF) insurance pool of $1,607,100 should have been transferred from the General Fund to the new Risk Management Fund. Council’s approval of this item is not for additional expenditures, but for the accounting mechanism to move the NCCSIF asset from General Fund to the new Risk Management Fund.
2) In the fall of 2019, with the completion of the 2018-2019 year end activities, per Key Management Practice, 50% of the increase in the General Fund unassigned fund balance should have been expensed and applied to the CalPERS unfunded pension liability. Although calculated, the amount of $1,587,900 was not expensed and therefore not included in the budget amendment originally presented to Council on June 23rd. Council approval is required for this expenditure of $1,587,900 to be sent to CalPERS.