City Council

a. SIGNAL HILL GENERAL FUND RESERVE POLICY\nSummary:\nThe City Council will consider adopting a General Fund Reserve Policy to\nformalize the City’s financial reserve targets and reserve criteria and pre-commit\nthe City to prudent decisions about reserves. The City’s prudent fiscal practices\nhave enabled the City to achieve and maintain a positive, long-term stable\nfinancial condition; the City’s current reserve funded status is approximately 92%\nof General Fund expenditures. During the budget adoption for the Fiscal Years\n(FY) 2024-2026, the City Council expressed an interest in revisiting the City’s\nreserve targets and establishing a formal General Fund Reserve Policy to\nensure continued long-term fiscal stability. The proposed General Fund\nReserve Policy would formalize the City’s management of reserve funds\nassociated with both unplanned and planned activities to ensure funding\navailability on a long-term basis for both scenarios.\nStrategic Plan Goal(s):\nGoal No. 1 Financial Stability: Ensure the City’s long-term financial stability\nand resilience\nGoal No. 2 Community Safety: Maintain community safety by supporting\npublic safety services and increasing emergency preparedness.\nGoal No. 3 Economic & Downtown Development: Improve the local economy,\nsupport local businesses, and create a vibrant downtown core.\nGoal No. 4 Infrastructure: Maintain and improve the City’s physical\ninfrastructure, water system, and recreational spaces.\nGoal No. 5 High-Functioning Government: Strengthen internal communication,\nrecruitment, retention, systems, and processes to increase the\neffectiveness and efficiency of City services.\nRecommendation:\nAdopt a resolution, entitled:\nA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL,\nCALIFORNIA, ADOPTING A GENERAL FUND RESERVE POLICY FOR THE\nCITY OF SIGNAL HILL.