HomeMy WebLinkAbout27-16A RESOLUTION 27-16A
A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS
APPROVES THE FUND BALANCE AND RESERVE POLICY
WHEREAS, financial reserves are an essential component to demonstrating financial stability
and strength of the organization; and
WHEREAS, a fund balance and reserve policy enables an organization to plan for
contingencies, maintain good standing with credit rating agencies, generate interest income, and
ensure that funds are available during emergencies and economic downturns; and
WHEREAS, the Town commits $500,000 as Pension Contribution Reserve to meet unfunded
pension liability; and
WHEREAS, the Town commits $15,000 as Technology Equipment Replacement Reserve to
address IT infrastructure improvements and replacements; and
WHEREAS, the Town commits $1,250,000 as Disaster Contingency Reserve to be utilized in
the event of a declared emergency; and
WHEREAS, the Town assigns $350,000 as Operating Contingency Reserve with a goal of
reaching 20% or 2 months of operating expenditure budget—excluding transfers; and
WHEREAS, the Town assigns residual encumbrance as Carryover Encumbrance Reserve to be
re-appropriated in the following fiscal year; and
WHEREAS, the City Manager is responsible for presenting annually a reserve balance report
and a reserve plan for City Council and Finance and Investment Committee to review; and
WHEREAS, the spending and replenishment of the reserves are subject to City Council
approval and can be part of the annual budget process; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Town of Los Altos
Hills approves the Fund Balance'and Reserve Policy.
The above and foregoing Resolution was passed and adopted by the City Council of the Town of
Los Altos Hills at a regular meeting held on 19th day of May, 2016 by the following vote:
AYES: Harpootlian, Waldeck, Corrigan, Radford, Spreen
NOES: None
ABSENT: None
ABSTAIN: None
BY:
J•!1 Harpootlian, Mayor
Resolution 27-16A Page 1
ATTEST:
-"°
i eborah Padovan, City Clerk
Resolution 27-16A Page 2