HomeMy WebLinkAboutRES NO 045-2021RESOLUTION NO. ® 4 5® 2® 2 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD, CALIFORNIA, ADOPTING A CASH RESERVE
AND FACILITY REPLACEMENT RESERVE FUND.
WHEREAS, the City Council overarching goals state the need to, "Plan for
stable and consistent fiscal solvency through prudent management of general
fund reserves, facility replacement reserves..."; and
WHEREAS, the City has maintained a Cash Basis Reserve Fund for many
years in order to provide for the short-term cash flow needs of the City's General
Fund on an annual basis; and
WHEREAS, the City has maintained Facility Replace Reserve Fund for many
years to cover unanticipated repairs to City facilities brought on by natural
disaster or other emergencies; and
WHEREAS, the City has deposited additional funds on occasion to increase
the balance of these reserve balances as a prudent fiscal action; and
WHEREAS, the City expanded the established cash reserves balance to also
serve as a rainy -day fund to be used for operational shortages in the General
Fund due to possible revenue reductions or emergency operational needs; and
WHEREAS, governmental accounting best practices recommend a 60 -day
cash reserve in the General Fund; and
WHEREAS, The City Council approved Resolution No. 019-19 on June 28,
2019 establishing a cash reserve and facility replacement reserve plan to fund
sufficient balances that, at the minimum, meet the recognized 60 -day standard
and adequate funds for emergency facility replacement.
WHEREAS, Council had a CASH BASIS RESERVE FUND Resolution in its Council
Policy and Procedure Manual (Chapter 4, Section 4.15).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Bakersfield as follows:
The above recitals are true and correct and are incorporated herein
by reference.
2. The attached Exhibit A is the current Cash Reserve and Facility
Replacement Reserve Fund policy.
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
MAR 17 2021 by the following vote:
✓ 1/ ✓ ✓ ✓
YES COUNCIL MEMBER ARIAS, GONZALES, WEIR, SMITH, FREEMAN, GRAY, PA�ER
NOES: COUNCIL MEMBER NO^,Q-
ABSTAIN: COUNCIL MEMBER Nyne_
ABSENT: COUNCIL MEMBER t-1vv,51,
JULIE DRIMAKIS
APPROVED MAR 17 2021
By
KAREN GOH
APPR
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City Attorney
Attachment: Exhibit "A"
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S:\C0UNCIL\Resos\20-21\CashResandFacilityReplacementReserve.docx
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
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