HomeMy WebLinkAbout122-94~' RESOLUTION NO. 122-94
ADJUSTING FUND BALANCES IN THE GENERAL FUND, PARKS AND
RECREATION FUND, BUILDING INSPECTION FUND, CHILD CARE FUND,
CAPITAL IMPROVEMENT FUND, CIVIC FACILITIES FUND, PARK FUND
AND ASSET REPLACEMENT FUND TO COMPENSATE FOR
REALIZED AND UNREALIZED INVESTMENT LOSSES
WHEREAS, the Town of Danville has incurred realized and unrealized investment losses as a result
of owning 15 securities whose maturities exceed five years in duration and were inappropriately
matched against the need for the invested funds; and
WHEREAS, all 15 of the securities were purchased during the 1993-94 fiscal year; and
WHEREAS, the current gross realized and unrealized losses incurred by the Town are valued at
$2,850,000 based upon losses realized through the sale of securities and current market values; and
WHEREAS, the realized and unrealized losses will require adjustment of fund balances for eligible
general purpose and special revenue funds; and
WHEREAS, staff has reviewed and evaluated all general purpose and special revenue funds accounted
for by the Town and has made recommendations for allocation of the realized and unrealized
investment losses; and
WHERF~S, the Town Council has considered options available for allocation of the investment losses
and the resultant impacts of such allocation upon the respective funds; now, therefore be it
RESOLVED by the Town Council of the Town of Danville that the fund balances in the General Fund,
Parks and Recreation Fund, Building Inspection Fund, Child Care Fund, Capital Improvement Fund,
Civic Facilities Fund, Park Fund and Asset Replacement Fund shall be reduced by $2,850,000 in the
manner shown on Exhibit 1 to this resolution; and be it
FURTHER RESOLVED that any investment losses which are recovered by the Town as a result of legal
efforts undertaken shall be reallocated to the funds shown on Exhibit I on the same percentage basis
used to allocate investment losses.
APPROVED by the Danville Town Council at a regular meeting held on October 4, 1994 by the
following vote:
AYES: Ritchey, Greenberg,
NOES: None
ABSTAINED: None
ABSENT: Doyle
Shimansky, Waldo
MAYOR
APPROVED AS TO FORM:
C-'CITY ATTORNEY
ATTEST:
CITY CLERK
Attachment: Exhibit 1
Allocation of Investment Loss
Fund
Total Fund % of
Balance Total
Total Adjusted
Loss Fund Balance
General Fund
Parks & Recreation
Building Inspection
Engineering
Planning
Child Care
Capital Improvement
Civic Facilities
Park Fund
Asset Replacement
$ 2,957,018 22.39
$ 13,733 0.10
$ 1,657,612 12.55
$ 0 0.00
$ 0 0.00
$ 636,258 4.82
$ 2,507,158 18.99
$ 4,265,721 32.30
$ 907,885 6.88
$ 259,495 1.97
$ 638,211 $ 2,318,807
$ 2,964$ 10,769
$ 357,761 $ 1,299,851
$ 0 $ 0
$ 0 $ 0
$ 137,323 $ 498,935
$ 541,118 $ 1,966,040
$ 920,668 $ 3,345,053
$ 195,948 $ 711,937
$ 56,007$ 203,488
Total
$13,204,880 100.00
$ 2,850,000 $10,354,880
EXHIBIT 1 TO RESOLUTION NO. 122-94