What is the status of the City’s financial reserves?

As a result of years of fiscal prudence, City has developed healthy financial reserves, which function as savings accounts or “rainy day” funds.  The Emergency Reserve (target level = $1.5 million) helps fund the costs of responding to a major fire, earthquake, or pandemic. The purpose of the Operating Reserve (target level = amount equal to 17% of annual operating expenditures)  is to help mitigate the effects of economic downturns on City services and allows time to adjust operations accordingly. Any remaining reserves are available for one-time projects and/or to restore the emergency and operating reserves to their target levels.

Total General Fund reserves at the beginning of FY 20-21 are estimated at $8M (the amount is finalized after completion of the annual financial audit).  Along with significant spending reductions, the adopted budget for FY 20-21 projects the use of $2M in operating reserves to balance the loss of revenues, which would draw the total reserves down to $6M by year’s end.

Learn more about the City’s reserve policies at the Financial Documents page.

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