On January 6, 2017 the City of Sparks declared a local state of emergency due to a winter storm event that begin on January 3, 2017 involving heavy rain that caused urban and Truckee River flooding in the City of Sparks.  The City of Sparks Financial Policy #4 is intended to set aside resources within a separate Fund called the Stabilization Fund to help stabilize operations during two specific scenarios: A) General Fund revenue declines by at least 4% from the previous year; or B) to help pay expenses incurred to mitigate the effects of a natural disaster upon formal declaration by the City.

The Stabilization Fund had a balance of $235K at the end of FY16. The proposed transfer of $252K from the Stabilization Fund to the General Fund for costs related to the January 2017 Flood will more than offset the $200K commitment of revenue to the Fund as part of the FY 17 budget. The FY 17 ending fund balance in the Stabilization Fund is expected to decrease to $186K and rise again to $388K based on the $200K revenue commitment of business license revenue for FY18 which was included in the City Managers Recommendations for the FY 18 Budget and approved by Council on April 24, 2017.

1. Council could approve transfer from the Stabilization Fund to the General Fund.
2. City Council could reject transfer from the Stabilization Fund to the General Fund.

I move to approve the transfer of $251,910 from the Stabilization Fund to the General Fund to mitigate the cost of the January 2017 Flood.