HomeMy WebLinkAbout2015-157 1 RESOLUTION NO. 2015-157
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO ESTABLISHING A GENERAL FUND FINANCIAL
3 SUSTAINABILITY RESERVE COMMITMENT POLICY.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
5 CITY OF SAN BERNARDINO AS FOLLOWS:
6 SECTION 1. That the Mayor and Common Council hereby approve and adopt a
7 General Fund Financial Sustainability Reserve Commitment Policy, attached hereto as Exhibit
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SECTION 2. That the Mayor and Common Council hereby set the General Fund
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11 Financial Sustainability Reserve Commitment to be the amount of$2,000,000.
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2015-157
Exhibit A
CITY OF SAN BERNARDINO
MAYOR AND COMMON COUNCIL POLICY
FOR
COMMITMENT OF GENERAL FUND BALANCE
FOR FINANCIAL SUSTAINABILITY RESERVE
The City will maintain a Financial Sustainability Reserve commitment in the General
Fund. The goal is to have a commitment of fund balance equal to ten percent (10%) of
operating expenditures in the General Fund.
The primary purpose of this commitment of fund balance in the General Fund is to
protect the City's essential service programs and funding requirements during periods of
economic downturn or other unanticipated or emergency expenditures that could not be
reasonably foreseen during preparation of the budget.
Once established, appropriations from the Financial Sustainability Reserve commitment
can only be made by formal Mayor and Common Council action. The affirmative vote of
a minimum of five members of the Common Council is required to expend the funds of
the Financial Sustainability Reserve.
Generally, appropriations and access to these funds will be reserved for emergency
situations. Examples of such emergencies include, but are not limited to:
• An unplanned, major event such as a catastrophic disaster requiring expenditure
over 5% of the General Fund adopted budget,
• Budgeted revenue taken by another government entity, e.g., the State of
California,
• or a drop in projected/actual revenue of more than 5% of the General Fund
adopted revenue budget.
Once established at the full commitment, should the Financial Sustainability Reserve
commitment be used, and its level falls below the minimum amount, the goal is to
replenish the fund within three fiscal years.
The Financial Sustainability Reserve commitment of the General Fund will be
established with the commitment of $2,000,000 from the unassigned fund balance of
the General Fund with the adoption of the applicable resolution on July 20, 2015.
The Financial Sustainability Reserve commitment will be revisited each fiscal year
during the budget review and adoption process.