Fiscal Policies
On February 6, 2023, the Pomona City Council adopted via Resolution 2023-06, City of Pomona's Updated Consolidated Fiscal Policies and Administrative procedures. These policies are intended to foster and support the continued financial strength and stability of the City as reflected in its financial goals. The consolidated policy document is designed and structured to develop principles that guide the financial administration of the City. Annual amounts will be presented for City Council approval as part of the Proposed Budget process.
The Consolidated Fiscal Policies and Administrative Procedures are available on the City's website.
Some of the notable changes that were adopted are as follows:
• Update of General Fund Economic Reserves at 22% of operating expenses, eventually increasing to 25%.
o Purpose(s): Financial needs due to a downturn or recession in the local, state, or national economy; action by another government that eliminates or shifts revenues from the City; an unanticipated inability to fully pay the General Fund's debt service obligations in any given year; other unexpected reductions or interruptions of revenue streams; or cash flow requirements of the General Fund. o Amount: minimum of 22% with the goal of incrementally increasing to a maximum of 25% of the General Fund's current fiscal year operating expenses.
Determination of this reserve amount should be based in part on the General Fund's revenue loss/recovery during prior economic downturns and recessions, an assessment of the volatility of General Fund's various major revenue streams, and a quantification of the General Fund's cash flow demands over the fiscal year as compared to the timing of revenue receipts.
• Setup a Catastrophic Events Reserve at $300k initially and increasing for 10 years to reach $5 million.
o Purpose(s): Financial needs due to unforeseen claims, damages, or liability, loss of critical infrastructure, facilities, equipment, or assets; extraordinary public service demands caused by natural disasters ( earthquake, flood, fire etc.), civil unrest or other unforeseen events.
o Amount: $300k initially and a goal of $5 million with annual appropriation towards that goal determined by the City Council at the time of the annual budget adoption. Determination of this reserve amount is a risk-loss assessment based on the City's own loss experience, claims data, history of natural disasters or unexpected events, and other relevant data.
Attachment No. 2