RESOLUTION NO. 2025-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND
BAR APPROVING THE AMENDED FUND BALANCE AND RESERVE
POLICY AND RESCINDING RESOLUTIONS 89-53 AND 2019-36 IN
THEIR ENTIRETY.
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 City Council adopted Resolution No. 89-53 establishing a Self Insurance Fund and to maintain a fund balance of no less than $1,000,000 to pay all selfassumed losses and other costs relating thereto; and WHEREAS, in 1990, the City joined the California Joint Powers Insurance Authority to provide a variety of insurance programs reducing the City’s exposure to potential losses; and
WHEREAS, the City Council adopted Resolution No. 2019-36 establishing the Fund Balance and Reserve Policy that provides the City Council the ability to 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 adopted Fund Balance and Reserve Policy do not include reference to the Self Insurance Fund; and
WHEREAS, in 2011, the City Council established the General Fund Emergency Contingency Commitment of $4.5 million, which represented three months of operating expenses in the adopted FY 2010-11 budget, to adequately provide for economic uncertainties, local emergencies or disasters, and other financial hardships or downturns in the local or national economy, including contingencies for unforeseen operating or capital needs and cash flow requirements; and
WHEREAS, it is a long-term goal of the City Council to regularly contribute to other funds, including the Other Post Employment Benefit (OPES) Reserve and Trust Funds, Building Facility Maintenance Fund, Vehicle Maintenance and Replacement Fund, and Technology Reserve Fund to provide for ongoing retiree benefit, maintenance, replacement, and system enhancement costs; and
WHEREAS, it is a long-term goal of the City Council to build unrestricted reserve funds in the Park Development Fund, Building Facility and Maintenance Fund, and Unrestricted General Fund Balance to provide flexibility, respond to emergencies, fund Resolution No. 2025-20
2 new projects and maintain necessary reserves for the eventual replacement of City capital facilities, equipment, and assets at the end of their design life; and WHEREAS, the City Council desires to amend the Fund Balance and Reserve Policy to include the Self Insurance Fund and to adjust its funding level.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows:
Section 1. The Amended Fund Balance and Reserve Policy attached hereto as Exhibit "A" is hereby approved by the City Council of the City of Diamond Bar. The City Manager and/or the Finance Director are each hereby authorized and empowered, for and on behalf of the City to assign fund balance to a specific purpose in accordance with and in relation to the Policy.
Section 2. The General Fund Emergency Contingency Commitment is renamed the Contingency Reserve Fund and shall maintain a balance equal to no less than 25% of annual General Fund expenditures, including transfers.
Section 3. The cumulative Other Post Employment Benefit (OPES) Reserve Fund and Trust Fund Balance shall be equal to no less than 80% of the total OPES liability based on the most recent independent actuarial valuation.
Section 4. The annual budget contribution to the Building Facility and Maintenance Fund shall be no less than $100,000.
Section 5. The annual budget contribution to the Vehicle Maintenance and Replacement Fund shall be based on estimated annual operating expenses plus depreciation.
Section 6. The annual budget contribution to the Technology Reserve Fund shall be no less than $100,000.
Section 7. The Self Insurance Fund shall maintain an annual balance of not less than $250,000.
Section 8. After the minimum funding levels and annual contributions to the funds identified in Sections 2 through 7 are satisfied, 40% of remaining fund balance available at the end of the fiscal year shall be apportioned to the Park and Facility Development Fund, 40% of remaining fund balance available at the end of the fiscal year shall be apportioned to the Building Facility and Maintenance Fund, and 20% of remaining fund balance available at the end of the fiscal year shall be apportioned to the Unrestricted General Fund Balance.
Section 9. Resolution Nos. 89-53 and 2019-36 are hereby rescinded in their entirety.
Resolution No. 2025-20
3 PASSED, APPROVED AND ADOPTED this 3
rd day of June, 2025.
CITY OF DIAMOND BAR
__________________________
Chia Yu Teng, Mayor
ATTEST:
I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 3
rd day of June, 2025, by the
following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCIL MEMBERS:
__________________________
Kristina Santana, City Clerk
Attachment:
“Exhibit A” - Fund Balance & Reserve Policy (Amended) effective July 1, 2025.