MEETING DATE:
June 11, 2024
SUBJECT:
Title
RESOLUTION NO. 2024-9299 - AMEND THE GENERAL FUND RESERVE POLICY NO. 2012-04
Body
Recommendation
Recommendation
ADOPT a resolution to amend the General Fund Reserve Policy No. 2012-04.
Body
Board or Commission Action
Not applicable.
Relevant Council Strategic Theme
Good Governance.
Relevant Department Goal
Not applicable.
Executive Summary
In March 2012, City Council adopted a General Fund Reserve Policy No. 2012-04 (Policy) establishing parameters governing the classification and reporting of fund balance in the financial reports to help ensure that there will be adequate financial resources to protect the City against unforeseen circumstances and events such as revenue shortfalls and unanticipated expenditures. In May 2015, the Policy was amended to lower the minimum unassigned, liquid reserve amount to 40% of the General Fund operating expenditures. In December 2019, the Policy was amended to re-characterize the Economic Contingency/Budget Stabilization Reserve category, change the allocation of General Fund reserves and incorporate Section 115 Pension Trust language.
As government municipalities re-baseline revenues and adjust to keep pace with the new post-pandemic economic environment of volatility and inflationary pressures, the ability to maintain service levels and take advantage of special infrastructure project opportunities for future efficiencies has been a challenge. At the April 11, 2024 budget workshop, staff provided options to mitigate the use and replenishment of the general fund reserves. The City Council indicated its inclination to consider updating the reserve replenishment plan of the General Fund Reserve Policy. Staff is making recommendations to amend the Replenishment of Unassigned Fund Balances section of the Policy.
Discussion
In March 2012, City Council adopted a General Fund Reserve Policy No. 2012-04 (Policy) establishing parameters governing the classification a...
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