LEGISLATIVE ACTION ITEM
SPONSOR: City Council Member Andy Terhaar
SUBJECT:
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Amendment to Policies of the City Council - Fund Balance Policy Section (D)(3)(c)
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RECOMMENDATION:
recommendation
That City Council amend the Fund Balance Policy of the City Council, Section (D)(3)(c) changing the minimum reserve from 15 percent to 20 percent.
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AGENDA: Regular
HEARING REQUIRED: No Hearing Required
SUMMARY:
The City Council has a series of City Council Policies; one such Policy is a Fund Balance Policy. Within Section (D)(3)(c) it states in part:
“c. Council Reserve (General Fund)
A minimum reserve of 15 percent of the General Fund beginning adopted appropriations (expenditure budget) should be incrementally established and maintained for use in meeting unanticipated needs and/or emergencies.”
This action item will increase the minimum reserve from 15 percent to 20 percent, in order to maintain and increase a healthy fund balance.
PRIOR ACTION:
September 9, 2010 - Adoption of Policy by Resolution
FUNDING:
N/A
FINANCIAL IMPACT:
An increase in the percentage of reserves to be gained and maintained.
STAFF CONTACT:
Don Kraher, Council Executive
ATTACHMENTS:
1) Proposed Amendment to the Fund Balance Policy
PRESENTATION: No