HomeMy WebLinkAboutRES CC 2008 2725 2008 0618RESOLUTION NO. 2008 -2725
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA ESTABLISHING A SPECIAL
PROJECTS FUND AND SETTING GENERAL FUND
RESERVE POLICY
WHEREAS, the City Council of the City of Moorpark has a need to maintain and
build new infrastructure that cannot be funded by non discretionary funds; and
WHEREAS, it is prudent financial planning to establish a separate Special
Projects Fund to account for excess General Fund reserves for the purpose of City
Council approved new infrastructure expenditures;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That a "Special Projects Fund" is herewith established within the
City of Moorpark's Chart of Accounts as a restricted Special Fund.
SECTION 2. That the City annually transfers any excess General Fund reserves
over 3 million dollars into the said Special Projects fund.
SECTION 3. That all of the investment income earned by funds in said Special
Projects Fund shall be returned to the City's General Fund.
SECTION 4. That the principal balance of the Special Projects Fund may be
expended on new infrastructure projects or any other purpose determined by three (3)
or more affirmative votes of the City Council.
SECTION 5. That the following financial reserve policy will be incorporated into
the Council's Policies Resolutions at the next update.
1. Introduction
Fiscal stability is an important factor to any city. Sound financial management
includes the practice and discipline of maintaining adequate reserve funds for
known and unknown contingencies. Such contingencies and occurrences
include, but are not limited to:
• Cash flow requirements
• Economic uncertainties and other financial hardships or downturns in the
local, state or national economy
• Local disasters or catastrophic events
• Loss of major revenue source
• Unanticipated operating or capital expenditures
• Capital asset and infrastructure repair and replacement
Resolution 2008 -2725
Page 2
The establishment of prudent financial reserve policies is important to ensure the
long -term financial health of the City.
2. Applicability
This policy will apply to the City General Fund.
3. Unreserved Fund Balance
The City will maintain a maximum General Fund unreserved fund balance of $3
million. Any excess General Fund unreserved fund balance will be transferred
out to the Special Projects Fund. Interest generated from the Special Projects
Fund will be posted to the General Fund as interest income, which is vital to the
City's General Fund operating budget. The Special Projects Fund will be used to
maintain and build new projects including major rehabilitation of streets, parks
and facilities (e.g. Construction of Civic Center Complex, Moorpark Library,
Street Capital Improvement Projects, etc.). These funds may also be used for
any other purpose as deemed appropriate by the City Council by a separate
vote.
4. Annual Adjustment of Reserve Levels
Reserve levels will be adjusted annually in accordance with this policy. General
Fund unreserved fund balance in excess of the $3 million maximum will be
transferred by the Finance Director to the Special Projects Fund in conjunction
with the year end analysis and preparation of the City's Comprehensive Annual
Financial Report (CAFR) and only after Council action to confirm such action.
SECTION 6. The City Clerk sfhaT certify to IN adoption of this resolution and
shall cause a certified resolution to a filed in the book original resolut Ens.
PASSED AND ADOPTED this 18th day of June,
ATTEST:
Maureen Benson, Assistant City Clerk
Resolution 2008 -2725
Page 3
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) ss.
CITY OF MOORPARK )
I, Maureen Benson, Assistant City Clerk of the City of Moorpark, California, do
hereby certify under penalty of perjury that the foregoing Resolution No. 2008 -2725 was
adopted by the City Council of the City of Moorpark at a regular meeting held on the
18th day of June, 2008, and that the same was adopted by the following vote:
AYES: Councilmembers Mikos, Parvin, Van Dam, and Mayor Hunter
NOES: None
ABSENT: Councilmember Millhouse
ABSTAIN: None
WITNESS my hand and the official seal of said City this 27th day of June, 2008.
Maureen Benson, Assistant City Clerk
(seal)