Fiscal Resiliency Reserve Policy (FRRP):
Amendment No. 5
Administrative Services – Finance
January 20, 2026
History: FRRP Amendments Approved by previous City Council Action (2013 – Current) • On October 21, 2013, to protect the fiscal solvency of the City and to achieve greater fiscal resiliency, the City Council took the important step of establishing the Fiscal Resiliency Reserve Policy (FRRP) (via Resolution No. 2013-159) and established several new reserves and funded each at the recommended levels.
• On June 20, 2016, the Fiscal Resiliency Reserve Policy (FRRP) was first amended by the City Council (via Resolution No. 2016-218) which formally established the Casino Revenue Sustainability Reserve (Fund: 180). The purpose of the reserve is to mitigate against the potential impact that a sudden shutdown or loss of casino revenue would have on the City’s ability to maintain current operations and service levels. • On April 15, 2024, the Fiscal Resiliency Reserve Policy (FRRP) received a second amendment approved by the City Council (via Resolution No. 2024-156). The action created new Internal Service Funds (ISFs) (Funds: 130, 140 and 190). The action assigned one-time allocation from the City’s Unassigned Reserves Fund Balance based on percentage of GF Operating Funds for the FY 2024-25 period only, effective July1, 2024. • On March 3, 2025, the Fiscal Resiliency Reserve Policy (FRRP) received a third amendmentapproved by the Council (via Resolution 25-032).
The action establish three (3) new reserve funds: (Funds 103, 104, and 105); and maintain two (2) internal services funds (Fund 130 & 140) with a one-time appropriation from unassigned fund balance from FY 2024/25 reserves, effective March 3, 2025. • On July 7, 2025, the Fiscal Resiliency Reserve Policy (FRRP) received a fourth amendmentapproved by the Council (via Resolution 25-094). The action established an annual review of proposed vehicle and equipment acquisitions from City Departments (i.e., Police and Public Works) be approved by the Public Safety Standing Committee, with recommendation to the City Council for approval by adopted Resolution.
Fund Types of Reserves Effective
07/01/2024
Effective
03/03/2025
FY 25
Expenses
FY 25
Balance Methodology
103 Sales Tax Revenue Sustainability Reserve $2,026,771 $2,026,771 up to a maximum of 10% of Unassigned Audited Fund Balance
104 General Liability Sustainability Reserve $1,013,386 $1,013,386 up to a maximum of 5% of Unassigned Audited Fund Balance
105 Pension (CalPERS) Liability Sustainability Reserve $1,013,386 $1,013,386 up to a maximum of 5% of Unassigned Audited Fund Balance
110 General Fund Designated Reserve $8,698,050 $1,956,772 $6,741,278 up to a maximum of 10% of Unassigned Audited Fund Balance
130 Building, Facilities, & Parks Maintenance $1,631,0360 $2,175,636 $481,431 $1,694,205 3% of Annual Total Operating Funds Budget
140 Asset and Vehicle Replacement Reserve $1,087,357 $2,061,966 $1,056,774 $1,005,192 2% of Annual Total Operating Funds Budget
150 Catastrophic Reserve $27,183,937 $28,152,495 $28,152,495 50% of Annual Total Operating Funds Budget
170 Budget Stabilization Reserve $2,718,394 $2,815,249 $2,815,249 5 % of Annual Total Operating Funds Budget
180 Casino Revenue Sustainability Reserve $12,682,993 $12,682,993 discretionary – Unassigned Audited Fund Balance
190 City Manager's Contingency Reserve $543,679 $543,679 $387,669 $156,010 1% of Annual Total Operating Funds Budget
Total $33,164,403 $61,183,611 $3,882,646 $57,300,965
Proposed FRRP Change Effective January 20, 2026:
• CURRENT Percentage Methodology:
At the completion of each annual audit, and following certification of the Annual Comprehensive Financial Report (ACFR) by the City’s independent auditor for that particular fiscal year, a percentage of the net change in year-end audited unassigned fund balance.
• PROPOSED Percentage Methodology:
At the completion of each annual audit, and following certification of the Annual Comprehensive Financial Report (ACFR) by the City’s independent auditor for that particular fiscal year, a percentage of the net change in year-end audited unassigned fund balance.
Fund Types of Reserves FY 2026
Appropriations
07/01/2026
Operating Budget
Methodology
Adjustment
Percentage
Methodology
Adjustment
Final FY 26
Appropriations
Methodology
103 Sales Tax Revenue Sustainability Reserve $1,836,566 $1,836,566 up to a maximum of 10% of Audited Fund Balance
104 General Liability Sustainability Reserve $918,283 $918,283 up to a maximum of 5% of Audited Fund Balance
105 Pension (CalPERS) Liability Sustainability Reserve
$918,283 $918,283 up to a maximum of 5% of
Audited Fund Balance
110 General Fund Designated Reserve
$5,086,213 $1,836,566 $6,922,779 up to a maximum of 10% of Audited Fund Balance
130 Building, Facilities, & Parks Maintenance
$1,694,205 $1,689,617 $0 $3,383,822 3% of Annual Total
Operating Funds Budget
140 Asset and Vehicle Replacement Reserve
$805,715 $1,126,412 $0 $1,932,127 2% of Annual Total
Operating Funds Budget
150 Catastrophic Reserve
$28,160,289 $0 $28,160,289 50% of Annual Total
Operating Funds Budget
170 Budget Stabilization Reserve
$2,816,029 $0 $2,816,029 5 % of Annual Total
Operating Funds Budget
180 Casino Revenue Sustainability Reserve
$0 $12,855,957 discretionary –
Audited Fund Balance
190 City Manager's Contingency Reserve $563,206 $0 $563,206 1% of Annual Total Operating Funds Budget
Total $7,586,134 $34,355,552 $5,509,698 $60,307,341
Staff Recommendation & Action:
1. Receive presentation; and
2. Recommend formal approval and consideration to approve the REVISED Fiscal Resiliency Reserve Policy (FRRP) Amendment No. 5, effective January 20, 2026
.
Thank you!
Questions & Comments?