Council discusses strategic use of general fund reserves
Goal is to restore some services lost during recession
The Paso Robles City Council, at its last meeting, discussed a report presented by City Manager Jim App about potential ways that it could continue to restore services lost during the recession. The council unanimously decided to receive and file the report, which was a review of the city’s general fund reserves. The council will continue to look into different ways that the reserves can be used, such as the proposed re-opening of Centennial Pool, while being careful to remain conservative with the funds, they said,
The total amount currently in the reserves is approximately 8.2 million, according to Director of Administrative Services Jim Throop. This number is about 30 percent of the total General Fund revenue, which for 2015 was projected to be about 26 million. The general fund budget is funded by taxpayers, and pays for things like fire, police, parks and recreation and administration. General funds are the bulk of the city’s operational costs. General fund reserves are like a savings account that the city has accumulated over many years.
In surrounding cities, San Luis Obispo, for example, the number in general fund reserves is currently at about 27 percent, with $13.7 million in general fund reserves. The total revenue for general funds in San Luis Obispo is projected to be about 51 million. Atascadero hits closer to the 20 percent mark because of recent projects like restoring city hall, with about 8.6 million is reserves.
Paso Robles has already taken strides towards restoration, but remains millions of dollars short of funds that it would take to restore the city to post-recession levels. “The city has restored 39 million dollars worth of infrastructure, and only 4 percent of that came from general funds, the rest came from grants,” said App. Congratulating the council and city staff for their strategy and success in obtaining grants, he said.
App gave the report addressing the goal set at the April 7 meeting to look to restoring services, and to, “expand efforts to invest in city infrastructure through the strategic use of reserves, with an emphasis on streets, parks, landscaping and facilities.”
During the recession, the city was able to survive by reducing the labor force by nearly one-third, and spent about 3 million dollars out of the reserves.
Some services and positions within the city may remain cut, as the city has learned how to successfully “live without.” In his report, he also presented suggested projects that could be tackled that would keep the city in the black in the coming years from department heads.
In App’s report, it stated that, “Today, reserves are restored. However, staff/service levels remain well below service demands (just 127 staff – compared against 159), plus there is considerable deferred maintenance. Looking forward, financial projections estimate only marginal improvement in revenues.”
The city’s department heads recommended the following uses of the reserves:
• Centennial Park Gym Stucco $145,000 from the recreation facility fund
• City Park Renovation $1,400,000 from state housing grant funds
• Boatel Parking $1,000,000 from special & grant funds
Sub-Total $2,545,000
• HVAC $80,000 for Centennial & City Hall/Library
• Municipal Pool ADA $37,000 for disabled access improvements
• Sherwood Park Restrooms $115,000 in rehabilitation
Sub-Total $332,000 General Fund Reserves
Grand total= $2,877,000
To restore all of the post-recession conditions would be a monumental task, but with the city’s conservative approach and the use of grants, the city should be able to move forward in the restoration process.
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