COUNCIL POLICY
Subject: Policy
Nu
mber
Effective
Date
Number of
Pages
CONTINGENCY RESERVE OF THE
INFORMATION TECHNOLOGY INTERNAL
SERVICE FUND
000-55 03/01/2011 1 of 1
A
mended by Resolution No. 27838 Dated: March 1, 2011
Adopted by Resolution No. 26590 Dated: June 13, 2006
I. BACKGROUND
There is a need for the City of Santa Rosa’s Inf
ormation Technology Internal Service Fund to
have a contingency reserve. Based on an analysis of potential un-planned expenses, a ten percent (10%) contingency reserve of operating (non-project) expenditures is necessary to meet these expenses without causing instability in user rates.
Examples of costs that were analyzed include un-planned major software purchases and/or license extensions; significant hardware purchases due to equipment failure or network related problems, including potential security threats; and unplanned labor or material purchases due to a natural disaster.
I. Purpose
To establish a policy which will provide an adequate contingency reserve for the City’s Information Technology Internal Service Fund. This reserve will provide funds for Rate Stabilization and large, unplanned expenditures.
II. Policy
A. A contingency reserve for the Information Technology Internal Service Fund will be ten percent (10%) of annual operating expenditures.
B. If reserves are used, they will be re plenished in conjunction with future budget cycles.
Attachment 1