HomeMy WebLinkAboutReso 2020-101 - Adopting Revisions to City Council Policy No 412, Establishment of Long-Range Financial Plans and Unreserved Cash Balance RESOLUTION NO.2020-101
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING ADOPTING REVISIONS TO CITY COUNCIL POLICY NO.
412, ESTABLISHMENT OF LONG-RANGE FINANCIAL PLANS AND
UNRESERVED CASH BALANCE
WHEREAS, in March 1992 the City Council of the City of Redding adopted City
Council Policy No 412 which was the establishment of long-range financial plans and
unreserved cash balances; and
WHEREAS, the City Council wishes to amend City Council Policy 412 to update the
minimum cash reserve levels in the long-range financial plans from five percent to ten percent
when developing and updating the budget;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City
of Redding that City Council Policy No. 412, as attached hereto, is adopted.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at
a regular meeting of the City Council of the City of Redding on the 4th day of August, 2020,
by the following vote:
AYES: COUNCIL MEMBERS: Dacquisto,Resner,Schreder,Winter,and McElvain
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ADAM McELVAIN,Mayor
ATTEST: FORM APPROVED:
PAMELA MIZE,City Cler BARRY E.De ALT,City Attorney
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY'
SUBJECT RESOLUTION POLICY EFFECTIVE
NUMBER NUMBER DATE PAGE
ESTABLISHMENT OF LONG-RANGE
FINANCIAL PLANS AND UNRESERVED
CASH BALANCE 92-110 412 03/17/92 1
BACKGROUND
Fiscal stability is an important factor to any city. The budget decisions made today will have an impact on
the City's future in not only what is accomplished, but what resources are available in the future. Being
concerned with only making ends meet this year, with little planning about what the future will hold is
shortsighted. Many governments become too shortsighted with their budget process,which causes crisis for
them down the road. The decisions made today could have a profound impact on the City's future.
PURPOSE
Just as a city must look ahead at land use needs, it must also forecast its financial needs in order to avoid
serious deficiencies or over-commitments to programs and projects. Establishing a long-range financial plan
and minimum reserve levels will assist in accomplishing the City's goal and objectives and provide for
orderly provisions of services to the citizens of Redding.
POLICY
It is the policy of the City Council of the City of Redding:
1. To prepare long-range financial plans for each of the City's major funds and update those plans at
least biennially.
2. To maintain at a minimum an estimated ten percent of projected expenditures unreserved cash
balance at year end throughout the long-range financial plan.
3. When approval of additional appropriations is requested of Council the effect on the long-range
financial plan should be considered.
4. A requested appropriation that would cause the estimated end of year cash reserve in any year of the
long-range financial plan to drop below ten percent needs to be submitted with a plan to insure the
fiscal stability of the major fund's financial position.
5. During the budget process, the City Council will evaluate the cash balance to determine if adequate
levels of cash are maintained based on the economic conditions of the area or other circumstances.
Amended August 4,2020,by Resolution No.2020-xx