HomeMy WebLinkAboutAttachment reso mid-yr budget (12)CITY COUNCIL POLICY
TITLE: MAINTENANCE OF RESERVE FUNDS POLICY
NUMBER 201
ADOPTED: JUNE 26, 1985 AMENDED OR
REVISED MARCH 12, 2002
Purpose
The City will establish reserves to strengthen its ability to withstand unexpected financial
emergencies such as may result from national disasters, revenue shortfalls, or unanticipated
expenditures of a non -recurring nature and to accumulate funds for large-scale purchases.
Policy
The reserve funds will be maintained in the appropriate funds at the following levels:
• CONTINGENCY RESERVE:
1. General Fund — The City Manager is charged with the responsibility of maintain-
ing an accumulating General Fund Contingency Reserve at a minimum target
range equal to between 25% and 50% of a single year's General Fund operating
expenditures. The actual amount of the General Fund Contingency Reserve shall
be determined each year by the City Manager as part of the budgeting process and
shall he annually reported to the City Council as part of the CAFR, Expenditures
from the General Fund Contingency Reserve require City Council approval.
2. Gas Tax Fund - an amount equal to a minimum level of five percent of the esti-
mated revenue.
3. Sewer Service Fund — an amount equal to a minimum level of five percent of esti-
mated revenue.
• LIABILITY INSURANCE RESERVE: An amount equal to nine times the self -
insured retention required by the City's liability insurance policy.
• WORKERS COMPENSATION RESERVE: An amount equal to the incurred ex-
penses remaining unpaid for all open Workers Compensation claims.
• DEBT SERVICE RESERVE: An amount equal to one years' debt service require-
ment of all long-term obligations.
• EQUIPMENT REPLACEMENT RESERVE: An amount equal to the accumulated
depreciation of the replacement value of the motor vehicle fleet.
Related Policy References
None
CITY OF NATIONAL CITY