HomeMy WebLinkAboutReso 1996-18358 RESOLUTION NO. 18358
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ESTABLISHING A COUNCIL POLICY REGARDING A
TARGET MINIMUM RESERVE LEVEL FOR THE GENERAL FUND
WHEREAS, although the City has historically considered the need to maintain minimum
reserve levels when arriving at budgetary decisions, it is felt that a written policy establishing
a target minimum reserve level would assist both the Council and Management to focus on
this important fiscal consideration in order to insure the continued fiscal solvency of the City;
and
WHEREAS, it appears that the goal for the minimum reserve level for the City's General
Fund should be approximately eight percent of the City's operating budget on an ongoing
basis; and
WHEREAS, the Policy recommended for Council adoption includes eight percent of the
operating budget as the target minimum reserve level for the General Fund.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby establish a Council Policy regarding a target minimum reserve level for the General
Fund, as set forth in Exhibit A, attached hereto and incorporated herein by reference as if set
forth in full.
Presented by Approved as to form by
ert Powell Ann Y. Moore
Finance Director Interim City Attorney
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Resolution 18358
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Exhibit "A"
COUNCIL POLICY
CITY OF CHUIA VISTA
SUBJECT: GENERAL FUND MINIMUM RESERVE POLICY EFFECTIVE
LEVEL NUMBER DATE PAGE
220-03 07/09/96 1 of 1
ADOPTED BY: Resolution No. 18358 ] DATED: July 9, 1996
BACKGROUND
In order to prudently protect the fiscal solvency of the City, it is important to maintain some minimum level of
reserves. Reserves are important in order to mitigate the negative impact on revenues from economic
fluctuations, to fund unforeseen expenditure requirements, to provide a minimum level of cash investment
interest revenue, and to avoid the need to borrow for each cash management purposes. Although the City has
historically considered the need to maintain minimum reserve levels when arriving at budgetary decisions, it is
felt that a written policy establishing a target minimum reserve level would assist both the Council and
Management to focus on this important fiscal consideration in order to insure the continued fiscal solvency of
the City.
pURpOSE 7I'
The purpose of this Policy is to establish a target minimum reserve level for the City's General Fund.
POLICY
The City will attempt to maintain an undesignated fund balance available for appropriation (Reserves) in the
General Fund of at least eight percent of the operating budget.
DISCUSSION
For the purpose of this Policy, Reserves are defined as unrestricted resources available for appropriation or
spending. In a technical sense, reserves would be defined as the difference between the City's liquid assets and
short-term liabilities, less any assets restricted by either legal requirements or Council action.
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Resolution 18358
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PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California,
this 9th day of July, 1996, by the following vote:
AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Hotton
NAYES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
' ' Shit~7 Horton, 'Mayor
ATTEST:
Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the
foregoing Resolution No. 18358 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 9th day of July, 1996.
Executed this 9th day of July, 1996.
~ALt~h~le~