Resolution - 2016-60RESOLUTION NO.2016-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA, AMENDING THE FUND BALANCE RESERVE POLICY FOR THE
GENERALFUND
WHEREAS, in an effort to become more financially secure, the City Council adopted a
Fund Balance Reserve Policy for the General Fund on July 7, 2015, with the adoption of Resolution
No. 2015-52; and
WHEREAS, the City Council amended the Fund Balance Reserve Policy for the General
Fund on March 1, 2016, with the adoption of Resolution No. 2016-18; and
WHEREAS, the City Council had previously adopted a fund balance reserve policy of 20%
of operating expenditures of the General Fund with the requirement that internal service funds are
fully funded every fiscal year. The policy states that 25% of any surplus will be transferred to the
Internal Service Funds for deferred maintenance. The policy also states that if reserve levels ever
fall below 20%, the City must amend this policy with a plan to rebuild it within three years; and
WHEREAS, the City Council has determined that the City has met the reserve level of 20%
of operating expenditures which is a Government Finance Officers Association (GFOA)
recommended fund balance reserve level; and
WHEREAS, the City Council has determined that the City shall maintain a minimum
unassigned fund balance of at least 20% of General Fund operating expenditures. At the end of the
fiscal year end close, the annual excess revenue over expenditures in the City's General Fund will
be automatically allocated as follows, unless the transfer is overridden by an action of the City
Council: 25% stays in the General Fund Balance reserves, 50% is transferred to the City's Capital
Prgjects Fund, and 25% goes to pay down the City's Other Post Employment Benefit (OPEB)
liability.
NOW, THEREFORE, the City Council of the City of West Covina does resolve as
follows:
SECTION 1. This resolution supersedes Resolution No. 2016-18 and adopts the Amended
Fund Balance Policy for the General Fund as reflected in Exhibit A to this resolution.
SECTION 2. That the City Clerk shall certify to the adoption of this resolution and the
same shall be in full force in effect immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 215` day of June, 2016.
Va es Toma
ayor
APPROVED AS TO FORM:
Ki berly H Barlow
City Attorney
ATTEST:
I
Nic olas S. Lewis -
City Clerk
1, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the
City of West Covina, California, at a regular meeting thereof on the 2151 day of June, 2016, by the
following vote of City Council:
AYES: Johnson, Warshaw, Toma
NOES: None
ABSENT: Spence, Wu
ABSTAIN: None
N• kolas S. Lewis
City Clerk V