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RANCHO PALOS VERDES CITY COUNCIL <br />AGENDA REPORT <br />AGENDA DESCRIPTION: <br />MEETING DATE: 06/21/2016 <br />AGENDA HEADING: Consent Calendar <br />Consideration and possible action regarding the 2017 Five -Year Financial Model. <br />RECOMMENDED COUNCIL ACTION: <br />(1) Approve 2017 Five -Year Financial Model. <br />FISCAL IMPACT: None <br />Amount Budgeted: N/A <br />Additional Appropriation: N/A <br />Account Number(s): N/A <br />ORIGINATED BY: Allan Kaufman, Senior Administrative Analyst - <br />REVIEWED BY: Deborah Cullen, Director of Finance 1�11 — <br />APPROVED BY: Doug Willmore, City Manager' -',"•1— i <br />ATTACHED SUPPORTING DOCUMENTS: <br />A. June 6, 2016 Staff Report (page A-1) <br />B. One -Page Summary — 2017 Five -Year Financial Model (page B-1) <br />C. 2017 Five -Year Financial Model by Fund (page C-1) <br />D. 2017 Capital Improvement Project Expenditures (page D-1) <br />E. 2017 Water Quality Flood Protection (WQFP) Expenses (page E-1) <br />BACKGROUND AND DISCUSSION <br />On May 26, 2016, Staff presented the 2017 Five -Year Model (2017 Model) to the <br />Finance Advisory Committee (FAC). Upon review, the FAC requested that Staff create <br />subtotals for restricted funds with a projected deficit fund balance (namely the Gas Tax <br />and Water Quality funds), and subtotals for restricted funds with a projected positive <br />fund balance. Staff incorporated said changes (Attachment B) before the 2017 model <br />was presented to the City Council on June 6, 2016. At this meeting, the City Council did <br />not recommend any changes to the draft 2017 Model. With no changes requested, Staff <br />has attached the June 6, 2016, Staff report for reference, which outlines projected <br />revenues, expenditures, and fund balances along with economic assumptions used to <br />build the 2017 Model. <br />The 2017 Model indicates that General Fund activity is balanced. The General Fund <br />unrestricted surplus, after accounting for the policy reserve of 50% of operating <br />expenditures, is estimated to range from $1.2 million to $1.8 million each year over the <br />next five years. It is important to mention that future economic activity, legislation and <br />1 <br />