RESOLUTION NO. 2024-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS AMENDING THE GENERAL FUND RESERVE POLICY 2012-04 WHEREAS, the City of San Marcos has committed General Fund Reserves to ensure the City’s ability to maintain vital services to the community during a declaration of emergency and times of economic uncertainty; and WHEREAS, the City of San Marcos is committed to demonstrating continued prudent fiscal management and creditworthiness; and WHEREAS, pursuant to Resolution No. 2012-7631 the City of San Marcos created General Fund Reserve Policy No. 2012-04 in March, 2012 (“Policy”), which Policy was amended by way of Resolution No. 2015-8054 on May 12, 2015 and further amended by the adoption of Resolution No. 2019-8698 on December 10, 2019, that sets forth guidelines to help ensure that adequate financial resources exist to protect the City against unforeseen circumstances and events such as revenue shortfalls and unanticipated expenditures; and WHEREAS, the City of San Marcos is committed to maintaining existing General Fund reserves (total unassigned fund balance) at a minimum of 40% of General Fund annual operating expenditures; and WHEREAS, the City of San Marcos has allocated General Fund reserves to the Catastrophic/Emergency Reserve (33 1/3%), One-time Recurring Savings/Opportunity Reserve (33 1/3%), and Economic Contingency/Pension Stabilization Reserve (33 1/3%); and WHEREAS, the City of San Marcos has determined that updating the Policy to extend the reserve replenishment period to ten years, and to include an interest rate to be paid for the use of unassign fund balance of the General Fund Reserves, is both prudent and essential.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Marcos does hereby amend the General Fund Reserve Policy, identified as Policy No. 2012-04, attached hereto and incorporated herein by reference, to change the Replenishment of Unassigned Fund Balance section of the Policy to provide for the replenishment period of ten years, and further amends said Policy No. 201-04 to include a rate of interest to be paid for the use of unassigned fund balance of the General Fund Reserves, as reflected in the updated General Fund Reserve Policy 2012-04 attached hereto and incorporated by reference.
PASSED, APPROVED AND ADOPTED by the City Council of the City of San Marcos this 11th day of June 2024, by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
_____________________________
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:
_____________________________
Phillip Scollick, City Clerk
City of San Marcos
Resolution No. 2019-XXXX
Resolution 2024-XXXX