City Council

A. FUND BALANCE RESERVE POLICY AMENDMENT AND ESTABLISHING\nRESERVE BALANCES FOR FISCAL YEAR 2022-2023\nA key component of a well-managed organization is a written policy that\nprovides for prudent fund balance reserve levels. The City’s fund balance\nreserve policy was established in May 2019 and has been amended multiple\ntimes. The proposed amendment to the policy refines the City’s contingency\nreserve levels as well as adding a commitment of fund balance option to set\nfunds aside for capital replacement and the retiree healthcare liability.\nAdditionally, this report recommends reserve levels for Fiscal Year 2022-23,\nwhich is currently under audit. Contingency reserves of 25% will be established\nin the general fund as well as committing funds for capital replacement and\nOther Post-Employment Benefits (OPEB) funding for Fiscal Year ended June 30,\n2023.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council adopt the following resolutions:\n1. Resolution No. 23-61 Amending the Fund Balance Reserve Policy; and\n2. Resolution No. 23-62 Establishing Unassigned General Fund Contingency\nReserves and Committing Fund Balance in the General Fund.