City Council

6. 2022-23 GENERAL FUND FINANCIAL UPDATE (UNAUDITED) AND PROPOSED\nREVISIONS TO THE CITY’S RESERVE POLICY\nRecommendation: Staff recommends that the City Council:\nA. Direct staff to agendize a discussion at the next City Council Priorities\nWorkshop on the allocation of the $3,413,471 in proceeds from the sale of\nthe 451 West Arrow Highway property;\nB. Allocate and appropriate $1,000,000 of the 2022-23 General Fund surplus\nfor an additional discretionary payment to CalPERS to pay down the\nunfunded liability on the City's employee pension plans;\nC. Allocate $1,000,000 of the 2022-23 General Fund surplus for a\ncontribution to fund the City's Section 115 Pension Trust;\nD. Allocate $1,810,698 of the 2022-23 General Fund surplus to the City's\nOperating and Environmental Emergency Reserve, bringing the reserve\nbalance to $9,337,719 or 30 percent of General Fund operating expenditures\nand transfers out;\nE. Approve the proposed amendment to the City's Reserve Policy (Policy\n10-25), increasing the Operating and Environmental Emergency Reserve\nminimum balance from 25 percent to 30 percent of General Fund operating\nexpenditures and transfers out; and\nF. Allocate $290,395 or any remaining 2022-23 General Fund surplus after\ncompletion of the annual audit to the City's Equipment and Facility Revolving\nReserve.\nAttachment(s): Proposed Reserve Policy - REDLINE\nProposed Reserve Policy - CLEAN