HomeMy WebLinkAboutRES NO 038-11RESOLUTION NO. O 3 8 - I
A RESOLUTION OF THE COUNCIL OF THE CITY
OF BAKERSFIELD ADOPTING A POLICY
REGARDING A CASH BASIS RESERVE FUND.
WHEREAS, the City Council Guiding Principles provide "to maintain
responsible fiscal policies which insure fiscal solvency and
WHEREAS, the City's General Fund has annual cash flow needs as a result of
timing differences when comparing the City's Property Tax receipts with the City's
spending needs during the first six months of each fiscal year; 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 retained investment earnings within the Cash Basis
Reserve Fund to take full advantage of compound interest earnings to grow the
Fund balance each year; and
WHEREAS, the City has deposited additional funds on occasion to increase
the balance of the Cash Basis Reserve as a prudent fiscal action; and
WHEREAS, The Budget and Finance Committee of the City of Bakersfield
reviewed the current practices at their May 23, 2011 meeting and are
recommending Council establish a formal policy to maintain the current practices
of allowing interest earning of the Cash Basis Reserve to remain in that Fund and
add monies to the fund when possible, as a prudent and responsible fiscal policy.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Bakersfield as
follows:
1. The above recitals are true and correct and are incorporated herein
by reference.
2. The Finance Director or his designee is hereby designated to maintain
the current practice of allowing interest earnings within the Cash Basis
Reserve Fund to remain in that Fund, thus growing the Fund each year
as interest earnings compound, within the boundaries of the City's
Investment Policy guidelines.
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ORIGIW-'
3. The City Manager will make recommendations to the City Council
regarding suggested amounts for deposit to add to the Cash Basis
Reserve Fund and incorporate these recommendations into the
proposed budget in any fiscal year where funds for such purpose may
be available to strengthen the City's financial position.
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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 JUN 0 812011
by the following vote:
YES: COUNCIL MEMBER SA AL S, BENHAM, WEIR, COUCH, HANSON, SUL VAN, JOHNSON
ND COUNCIL MEMBER 110M
ABSTAIN: COUNCIL MEMBER Y\0"yo_
ABSENT: COUNCIL MEMBER xnao&
CITY CLERK and Ex Off' Clerk of the
Council of the City of Bakersfield
B
APPROVED AS TO FORM:
VIRGINIA GENNARO, CITY ATTORNEY
By /a'Z"
OSHUA H. RUDNICK
Deputy City Attorney
S:\Admin\Reso - council policy on cash basis reserve.wpd
--May 23, 2011 nks
-Page 3 of 3 Pages -
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`DIAL.
APPROVED JUN 0 8 2011