Reso No.____
RESOLUTION NO. _____
RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA,
ADOPTING THE CASH RESERVE POLICY
WHEREAS, the City of Richmond has determined that an appropriate level of the General Fund reserves is a policy decision; and
WHEREAS, the Governmental Finance Offi cers As sociation recommends that reserve levels be directly related to the degree of uncertainty the local government faces; and
WHEREAS, the Cash Reserve Policy identifies an ending cash balance equal to fifteen – twenty percent (15-20%) of total General Fund expenditures as the minimum needed to provide stability against potential volatility of revenues and uneven cash flows; and
WHEREAS, City Council approval is required before any withdrawals from cash reserves, which should be used for one-time emergencies only and not to be used for ongoing expenditures; and
WHEREAS, as the City experiences net revenue gains in future years, cash reserves must grow back to a minimum fifteen – twenty percent (15-20%) of total General Fund expenditures; and
WHEREAS, the adoption of the Cash Reserve Policy is consistent with “best practices” and the City Council’s fiduciary oversight of fiscal policies.
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby adopts the Cash Reserve Policy for the City of Richmond that is attached hereto as Exhibit A.
Reso No.____
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond, California, at a regular meeting thereof held September 20, 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
____________________________________
CLERK OF THE CITY OF
RICHMOND
(SEAL)
Approved:
_________________________________
Mayor
Approved as to Form:
_________________________________
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.