HomeMy WebLinkAbout- - FY2010-11 General Fund Operating Reserve - 6/15/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 15, 2010
ITEM NUMBER:
SUBJECT: RESOLUTION ESTABLISHING THE FISCAL YEAR 2010-2011 GENERAL FUND
OPERATING RESERVE
DATE: JUNE 11, 2010
FROM: FINANCE DEPARTMENT/ADMINISTRATION DIVISION
PRESENTATION BY: BOBBY YOUNG, BUDGET AND RESEARCH OFFICER
FOR FURTHER INFORMATION CONTACT: BOBBY YOUNG (714) 754-5241
RECOMMENDATION:
Adopt Resolution establishing a $14.125 million General Fund Operating Reserve for Fiscal Year
2010-2011.
BACKGROUND:
The City has maintained a General Fund Operating Reserve of $14.125 million for a number of
years. In July 1991, the City Council adopted Ordinance 91-20, which governs the use of the City's
General Fund Operating Reserve. This Ordinance provides that each year, the City Council, by
Resolution, set the funding level of the General Fund Operating Reserve.
ANALYSIS:
The General Fund Operating Reserve was established to provide funds for contingencies to manage
unforeseen events. This Operating Reserve has been maintained at $14.125 million for a number of
years now. At this time, staff recommends the City Council adopt the Operating Reserve at $14.125
million for Fiscal Year 2010-2011. This funding level is equivalent to 15.15% of the proposed
General Fund appropriations or 13.06% of the total proposed appropriations for all funds.
GENERAL FUND OPERATING RESERVE AS OF JULY 1, 2009 $ 14.125.000
PROPOSED GENERAL FUND OPERATING RESERVE AS OF JULY 1, 2010 $ 14.125.000
ALTERNATIVES CONSIDERED:
The City Council may choose to change the funding level for the Fiscal Year 2010-2011 General
Fund Operating Reserve.
FISCAL REVIEW:
The proposed $14.125 million General Fund Operating Reserve represents approximately 15.15% of
the Fiscal Year 2010-2011 Proposed General Fund Budget.
LEGAL REVIEW:
The City Attorney has reviewed and approved the attached Resolution as to form.
BOBBY YOUNG
Budget and Research Officer
Attachment 1: Resolution — Fiscal Year 2010-2011 General Fund Operating Reserve
REA