HomeMy WebLinkAboutReso - CC - 085-2017RESOLUTION NO. 85-2017
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BURLINGAME APPROVING A POLICY FOR THE CAPITAL
INVESTMENT RESERVE
WHEREAS, the City of Burlingame wishes to support its goal of sustaining long-term
financial strength through the establishment of clearly articulated reserve policies; and
WHEREAS, the Renewal and Replacement Reserve was established with initial funding in
the 2014-15 fiscal year of $3.0 million, with future additions made in subsequent years, generally
from General Fund budgetary surpluses; and
WHEREAS, Council now wishes to rename the Renewal and Replacement Reserve to
Capital Investment Reserve to more accurately reflect the intended use of the reserve; and
WHEREAS, Council wishes to document the appropriate funding sources and intended
uses of funds set aside in the Capital Investment Reserve in a formal policy, attached to this
resolution; and
WHEREAS, the Capital Investment Reserve policy should be reviewed at least annually, to
ensure its effectiveness and relevance to the City's long-term needs, and to ensure that the policy
remains current with government financial best practices.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME
RESOLVES AND ORDERS AS FOLLOWS:
The Capital Investment Reserve Policy as shown on the attached Exhibit A is adopted.
I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, hereby certify that the
foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the
Burlingame City Council held on the 3rd day of July, 2017, by the following vote:
AYES: Councilmembers BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
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Meag ssel-Shearer, City Clerk
Exhibit A
City of Burlingame, California
Financial Policy Document
Capital Investment Reserve
Adoption Date: July 3, 2017
Owner Department: Finance
I. Introduction
A Capital Investment Reserve has been established in the City of Burlingame's (the City's)
Capital Projects Fund in order to fund major capital improvements projects that are critical for
the continued provision of municipal services, but for which appropriate funding has not been
identified or is not immediately available.
This policy establishes how the Capital Investment Reserve will be funded and the conditions
under which the reserve may be spent.
II. Funding the Reserve
City staff will recommend with each fiscal year operating budget and funding of the five-year
Capital Improvement Plan (CIP) an amount of General Fund transfer to the Capital
Investment Reserve of the Capital Projects Fund.
The recommended transfer will be updated at least annually, once the actual (audited) results
of General Fund operations for the preceding fiscal year have been determined and the
subsequent mid -year review is available.
Future additions to the reserve, whether from one-time General Fund revenues, budgetary
surpluses, sale of City properties, or unrestricted funding from other sources, may be made
through City Council authorization at any time.
As with all other Capital Project Fund balances, any interest earned on the Capital Investment
Reserve shall accrue to the City's General Fund.
III. Conditions for Use of Reserves
A. Use of Reserves
Except as otherwise provided by law, no expenditures may be made from the Capital
Investment Reserve funds that are not duly appropriated by the City Council for the purpose
for which the reserve was established.
Appropriation of Capital Investment Reserve funds shall be made only for projects
specifically identified by the City Council.
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Exhibit A
City of Burlingame, California
Financial Policy Document
Capital Investment Reserve
It is the intent of the City to limit use of the Capital Investment Reserve to address the City's
many unfunded capital project needs. These reserves shall not normally be applied to
recurring annual operating expenditures.
The City may use any amount available within the Capital Investment Reserve for the purpose
for which the reserve was established.
B. Authority to Use Reserves
Only the City Council may authorize the use of Capital Investment Reserve funds. Only the
City Council may authorize inter -fund borrowing from the Capital Investment Reserve in the
event that such resources are needed for purposes outside the scope of this policy. The terms
of repayment of such amounts must be established prior to the inter -fund borrowing.
IV. Annual Review of Policy
The Capital Investment Reserve policy will be reviewed at least annually with the
development of each fiscal year's budget. If changes are deemed necessary to safeguard its
effectiveness and relevance to the City's long-term needs, or to ensure that the policy remains
current with government financial best practices, changes to the policy may be authorized by
the City Council at any time.
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