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21-1076RESOLUTION NO. 21-1076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, MODIFYING THE CITY OF MENIFEE FUND BALANCE DESIGNATIONS AND REQUIRED FUND BALANCE LEVELS WHEREAS, the Governmental Accounting Standards Board (GASB) has issued its Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions with the intent of improving financial reporting by providing fund balance categories that will be more easily understood and; WHEREAS, the Administrative Policy entitled "Fund Balance Policy for the General Fund" provides that the City Council may commit General Fund balance for specific purposes by taking formal action and these committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same formal action taken to establish the commitment; and WHEREAS, the Assistant City Manager is recommending to the City Council that an amount equal to twelve and a half (12.5) percent of General Fund Operating Expenditures be committed for the establishment of a General Fund Operating Reserve Stabilization Fund Balance; WHEREAS, the Assistant City Manager is recommending to the City Council that an amount equal to twelve and a half (12.5) percent of General Fund Operating Expenditures be assigned for the establishment of a General Fund Economic Uncertainty Reserve Fund Balance; WHEREAS, the Assistant City Manager is recommending to the City Council that an amount equal to ten (10) percent of General Fund Operating Expenditures be available as Unassigned Fund Balance; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California, does hereby approve as follows: SECTION 1: The City Council hereby establishes and approves the General Fund Operating Reserve Stabilization Fund Balance Commitment of twelve and a half percent (12.5%) of the General Fund Operating Expenditures of the FY 21/22 adopted budget. SECTION 2: The City Council hereby establishes and approves the General Fund Economic Uncertainty Reserve Fund Balance Assignment of twelve and a half percent (12.5%) of the General Fund Operating Expenditures of the FY 21/22 adopted budget. SECTION 3: The City Council hereby establishes and approves the General Fund Unassigned Fund Balance minimum balance of ten percent (10%) of the General Fund Operating Expenditures of the FY 21/22 adopted budget. SECTION 4: The City Council has determined that the specific purposes for which the General Fund Operating Reserve Stabilization Fund Balance Commitment may be used are a catastrophic event or emergency and these uses may only be changed by approval of a subsequent resolution. Fund Balance Policy Revision SECTION 5: The City Council hereby confirms that the General Fund Operating Reserve Stabilization Fund Balance Commitment shall be maintained at an amount equal to twelve and a half percent (12.5%) of General Fund operating expenditures in any fiscal year. SECTION 6: The City Council hereby confirms that the General Fund Economic Uncertainty Reserve Fund Balance Assignment shall be maintained at an amount equal to twelve and a half percent (12.5%) of General Fund operating expenditures in any fiscal year. SECTION 7: The City Council hereby confirms that the General Fund Unassigned Fund Balance minimum balance shall be maintained at an amount equal to ten percent (10%) of General Fund operating expenditures in any fiscal year. PASSED, APPROVED AND ADOPTED this 151h day of September, 2021. Attest: S rah A. Manwaring, City r 2 Bill Zimmeron ayor Approved as to form STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF MENIFEE ) I, Sarah A. Manwaring, City Clerk of the City of Menifee, do hereby certify that the foregoing Resolution No. 21-1076 was duly adopted by the City Council of the City of Menifee at a meeting thereof held on the 15th day of September 2021 by the following vote: Ayes: Deines, Karwin, Liesemeyer, Sobek, Zimmerman Noes: None Absent: None Abstain: None CISrkah A. Manwaring, City C1