HomeMy WebLinkAboutReso - CC - 092-2015RESOLUTION NO. 92-2015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BURLINGAME APPROVING A RESERVE POLICY FOR THE
CITY'S GENERAL FUND
WHEREAS, the City of Burlingame wishes to support its goal of sustaining long-term
financial strength through the establishment of a clearly articulated reserve policy; and
WHEREAS, reserves are the cornerstone of financial flexibility, providing options for
responding to unexpected issues and a buffer against economic downturns and other forms of
risk; and
WHEREAS, in 2014 the City engaged the services of Research and Consulting Center of
the Government Finance Officers Association (GFOA) to provide a risk-based analysis and
recommendation for appropriate reserves for the City; and
WHEREAS, the GFOA analysis determined that the City should retain an Economic
Stability Reserve to protect and preserve City services from dramatic drops in General Fund
revenues that are highly sensitive to economic conditions; and
WHEREAS, the GFOA analysis also determined that the City should retain its
Catastrophic Reserve to provide for the cost of repairs to City buildings and facilities caused by
natural disasters or other catastrophic events; and
WHEREAS, based on an updated analysis of the probable impact of an earthquake or
other infrequent but consequential event, the GFOA provided a lower optimal target reserve level
recommendation for the City's Catastrophic Reserve; and
WHEREAS, the GFOA suggests that infrequent but consequential events can best be
covered by a blend of reserve, debt and insurance strategies; and
WHEREAS, the General Fund Reserve policy should be reviewed at least annually, to
safeguard 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 DOES
HEREBY RESOLVE AND ORDER AS FOLLOWS:
The General Fund Reserve Policy as revised for the City of Burlingame and shown on the
attached Exhibit A is hereby adopted.
/ I
Terry Nagel Mayor
I, Meaghan Hassel -Shearer, City Clerk, 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 19th day of October, 2015, by the following vote to wit:
AYES: Councilmembers: BROWNRIGG,
NOES: Councilmembers:ORTIZ
ABSENT: Councilmembers: ROOT
KEIGHRAN NAG P1