R-091-17 Adopting the Fund Balance Reserve Policy for the General Fund (11.07.17)

Browse Search

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. R-91-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON ADOPTING THE FUND BALANCE RESERVE POLICY FOR THE GENERAL FUND WHEREAS, the City Council determined at its September 10, 2016 goal -setting workshop that the one of the top priorities is to ensure the financial health of the City through fiscal responsibility and long-range financial planning; and WHEREAS, on August 1, 2017 the City Council adopted Resolution R-58-17 to amend the General Fund Reserve balance policy from requiring a minimum of 10% of the General Fund operating expenditures to 15% of operating expenditures; and WHEREAS, the City of Colton is committed to maintain a prudent level of financial resources to mitigate current and future risks, to address long-term financial planning, to preserve the integrity of the bond rating of the City, and to protect against reducing service levels or raising taxes and fees as a result of temporary revenue shortfalls or unexpected one-time expenditures; and WHEREAS, this policy is in accordance with generally accepted governmental accounting principles and in compliance with the California Constitution; and WHEREAS, after evaluating the City of Colton s operating performance, diversity of tax base, reliability of revenue sources, working capital needs, impact on bond rating, State and local economic outlooks, emergency and disaster risk, and other contingent issues, the City Council seeks to establish the fund balance policy set forth in Exhibit A. NOW THEREFORE, BE IT RESOLVED, DECLARED, DETERMINED AND ORDERED by the City Council of the City of Colton, California, as follows: SECTION 1. The Finance Director is hereby authorized during the fiscal year-end close to allocate the annual excess revenue over expenditures in the City's General Fund as follows, unless the transfer is overridden by an action of the City Council: 10% retained in the General Fund unassigned reserve balance, 50% committed for pension obligation, 25% committed for the City's OPEB liability, 10% transferred to the City's Building Maintenance Fund, and 5% transferred to the City's Autoshops Fund. SECTION 2. The General Fund Reserve as a commitment of fund balance cannot be used for any other purpose unless the City Council amends the specified use through the same type of formal action taken to establish the commitment.