2021-09-15 City Council Item 12.4 Fund Balance Policy for the General Fund Presentation Regular MEETING - Additional Meeting MaterialsItem #12.4: Fund
Balance Policy for the
General Fund
Wendy Preece
Deputy Finance Director
Review the Proposed Changes
to the Current
Fund Balance
Policy and
Recommend New
Reserve Levels
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CURRENT POLICY RESERVES:
COMMITTED Fund Balance 10%
ASSIGNED Fund Balance 10%
Unassigned Fund Balance 5%
Total Fund Balance Reserve 25%
Requires Formal City Council Action (ordinance or
resolution) to establish and/or use and is for a
specific use.
Reserved and intended for specific purposes. Can be
by City Manager or designee.
Spendable amounts not included in other
classifications
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CURRENT COMMITTED AND ASSIGNED RESERVES :
Committed Funds:
Committed - Emergency Stabilization 6,892,510.00$
Committed - City Hall 750,000.00
7,642,510.00$
Assigned Funds:
Assigned - Economic Uncertainty 6,892,510.00$
Assigned - Fire Safety 285,513.49
Assigned - PARSAC 75,000.00
Assigned - General Plan Update 750,762.70
Assigned - Central Park Amphitheatre 450,000.00
Assigned - Holland Road Overpass 671,614.00
Assigned - Bradley Bridge 223,872.00
9,349,272.19
RESERVE BALANCES
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OPTIONAL RESERVE TOTALS:
COMMITTED Fund Balance 10.0%12.5%11.0%
ASSIGNED Fund Balance 10.0%12.5%11.0%
Unassigned Fund Balance 5.0%10.0%8.0%
Total Fund Balance Reserve 25.0%35.0%30.0%
Current Proposed Option #2
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RESERVE LEVEL COMPARISON:
Agency General Fund Reserve
City of Perris
City of Murrieta
35% of annual budgeted revenues
30% of annual budgeted expenditures
City of Menifee 25% of annual budgeted expenditures
City of Moreno Valley 22% of annual budgeted expenditures
City of Temecula 20% of annual budgeted expenditures
City of Riverside 20% of annual budgeted expenditures
City of Lake Elsinore 17.5% of annual budgeted expenditures
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AVAILABLE FUND BALANCE AFTER RESERVES:
FY 21/22
General Fund
Adopted Budget
Estimated
Available Fund
Balance 7/1/21
Current
Required 25%
Reserve
Proposed 35%
Reserve
Alternate
Option - 30%
Reserve
$68,925,100 $33,086,000 $17,231,275 $24,123,785 $20,677,530
$15,854,725 $8,962,215 $12,408,470Estimated Fund Balance Surplus:
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RECOMMENDED ACTION:
1.Approve a Resolution modifying the Fund Balance
Policy reserve requirements for Fiscal Year 2021/22
to 12.5% Committed Fund Balance, 12.5% Assigned
Fund Balance and 10% Unassigned Fund Balance,
for a total of 35%; and
2.Approve the revised Fund Balance Policy, CC-07.
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Thank you
Questions?