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CITY OF SAN MATEO
RESOLUTION NO. ______ (2025)
APPROVING A $25 MILLION CONTRIBUTION FROM THE GENERAL FUND TO
THE CAPITAL INVESTMENT RESERVE UNDER THE CAPITAL PROJECTS FUND
WHEREAS, the City of San Mateo conducted a comprehensive review of its General Fund Reserve Policy to improve financial transparency, align with best practices, and ensure long-term fiscal sustainability; and WHEREAS, staff presented the analysis and proposed changes to the reserve policies to the City Council on April 7, 2025; and
WHEREAS, the revised policies identify and separate specific categories of reserves, including the establishment of a Capital Investment Reserve under the Capital Projects Fund, dedicated to funding critical, unfunded capital improvement needs; and
WHEREAS, the Finance Department recommends an initial contribution of $25 million to the Capital Investment Reserve, funded from released General Fund reserves from the restructuring of the reserve levels; and
WHEREAS, the City Council finds it prudent and fiscally responsible to allocate a portion of the released funds to support long-term capital infrastructure needs; and WHEREAS, the City Council directed staff to incorporate the revised reserve policies through the fiscal year 2025-26 budget; and
WHEREAS, based on the adopted FY 2025-26 budget, an initial contribution of $25,000,000 is to be made from the General Fund to the newly established Capital Investment Reserve under the City’s Capital Projects Fund;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, RESOLVES, that:
1.In accordance with Public Resources Code Section 21065, this action is exempt from review under the California Environmental Quality Act because it can be seen with certainty that it will not have a significant impact on the environment.
2.The City Council authorizes a transfer of $25 million from the General Fund unassigned balance to the Capital Investment Reserve under the Capital Projects Fund for the fiscal year ending June 30, 2026.