HomeMy WebLinkAboutReso 92-110 - Estalishing & Adopting a policy instituting a General Fund Unreserved Fund Balance RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
ESTABLISHING AND ADOPTING A POLICY INSTITUTING A
GENERAL FUND UNRESERVED FUND BALANCE.
WHEREAS, the City Council of the City of Redding is charged
with the responsibility of establishing municipal policies to
guide the various functions of the City and, where necessary, to
establish procedures by which functions are performed; and
WHEREAS, regulatory policies established by the City Council
are usually adopted by Ordinance and included in the Municipal
Code. However, other policies are also established, which by
their nature do not require adoption by Ordinance; these policy
statements, adopted by Resolution of the City Council, need to be
consolidated in a reference document for easy access; and
WHEREAS, on August 4 , 1987 , by Resolution No. 87-261, City
Council adopted a Council Policy Manual to achieve said
objectives; and
WHEREAS, City Council wishes to adopt a policy establishing
a General Fund unreserved fund balance;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1 . That all of the above recitals are true and correct.
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2. That the Policy attached hereto be and hereby is
adopted as the Council Policy pertaining to the Establishment of
a General Fund Unreserved Fund Balance.
3 . That said Policy be incorporated in the Council Policy
Manual.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 17th day of March , 1992 , and was duly
adopted at said meeting by the following vote:
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AYES: COUNCIL MEMBERS: Arness, Carter, Fulton, Moss & Dahl
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
MIKE DAHL, Mayor
City of Redding
ATr1 ST:
CONNIE STROHMAYER, Ci y Clerk
FORM PROVED:
RAADALL A. HAYS, ity Attorney
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CITY OF REDDING, CALIFORNIA
COUNCIL POLICY--
S UBjECT
OLICY--SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
ESTABLISHMENT OF UNRESERVED
FUND BALANCE 412
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BACKGROUND
Fiscal stability is an important factor to any City. It is Council
responsibility to maintain a sufficient level of unreserved fund
balance to avoid or reduce budget cutbacks and tax increases if
unexpected budget shortfalls or increased community demands occur
during a fiscal year.
PURPOSE
Establish a General Fund unreserved fund balance to maintain a
stable tax and revenue structure and provide for the orderly
provision of services to the citizens of Redding.
POLICY
It is the policy of the City Council of the City of Redding:
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1 To establish an unreserved fund balance within the General Fund
of not less three percent ( 3%) of the appropriations for any
fiscal year.
2.1 Moneys set aside in the unreserved fund balance shall not be
reduced below the three percent ( 3%) of appropriations level
without prior approval of the City Council. This would take
the form of a supplemental appropriation of resources from the
unreserved fund balance account.
3 . Each fiscal year during the budget process, the unreserved fund
balance will be re-evaluated. An appropriate amount of
resources will be transferred to be maintained at not less than
three percent ( 3%) of appropriations.
4.1 City Council will evaluate during the annual budget process the
unreserved fund balance to determine if adequate levels of
reserve are maintained based on the economic conditions of the
area.
PROCEDURE
specific procedures to achieve the purpose stated above are
provided in the City of Redding Budget Policies and Procedures
Manual.
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CR 0049