HomeMy WebLinkAbout412 - Establishment of Unreserved Fund Balance CITY OF REDDING, CALIFORNIA
• COUNCIL POLICY
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
ESTABLISHMENT OF UNRESERVED •
FUND BALANCE 92-110 412 3/17/92 1
BACKGROUND
Fiscal stability is an important factor to any City. It is
Council responsibility to maintain a sufficient level of unre-
served 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:
• 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 . 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 . 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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