HomeMy WebLinkAboutOrdinances_2660_CCv0001.pdf ORDINANCE NO. 2660
AN ORDINANCE OF THE CITY OF REDLANDS ADDING CHAPTER 3.06
TO THE REDLANDS MUNICIPAL CODE TO ESTABLISH A GENERAL
FUND RESERVE POLICY
Section 1. Chapter 3.06 establishing a General Fund Reserve Policy is Hereby added to
the Redlands Municipal Code to read as follows:
"Chapter 3.06
General Fund Reserve Policy
Sections:
3.06.010 Purpose.
3.06.020 Policy.
3.06.010 Pr_ Imose. The City Council of the City of Redlands acknowledges its
responsibility to maintain a sufficient level of funds to provide for the continuation of City
services to the community in the event of a natural disaster, downturns in the economy, the loss
of economic resources to the City or any other fiscal emergency. The purpose of this Chapter is
to formalize the City Council's desire to ensure sound financial management of the City by
establishing a reserve fund policy for the City's General Fund.
3.06.020 Policy. It shall be the fiscal policy of the City Council:
A. To adopt a balanced budget on an annual basis. For purposes of this Chapter, a
balanced budget is defined as a condition wherein total financial sources, excluding any available
beginning fund balance and any established reserves, meets or exceeds the total financial
requirements of the City, excluding one-time capital expenditures. Except as otherwise provided
for in this section, this "pay as you go" approach mandates that any increase in financial
requirements, decrease in financial sources, or a combination of the two, that would result in a
budget imbalance will require cost cutting and/or revenue enhancements, rather than spending
reserves to support ongoing operations. Cost cutting measures may include reductions in capital
expenditures, reductions in staffing levels, salaries and benefits through the negotiation process,
or reductions in expenditures for equipment, supplies and services. Expenditure reductions may
result in reduced service levels to the community.
B. To establish a reserve fiend equivalent to a minimum of twelve percent (12%) of the
General Fund financial requirements. The terra "financial requirements,,' for purposes of this
Chapter, is defined as the sum of approved operating expenditures and operating transfers out.
One-time (non-recurring) expenditures shall not be used in the required reserve calculation.
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C. That the City Council may, by four aflinnative votes of its total membership, utilize
the reserve fund described by this Chapter only when faced with an unforeseen or uncontrollable
event affecting the City's fiscal situation. Examples of an unforeseen or uncontrollable event
include, but are not in any manner limited to, the following:
1. Federal or State budget cuts that financially impact the City;
2. Local revenue shortfalls due to a major business closure or relocation;
3. Legislative or judicial mandates to provide new or expanded services or
programs; that in total will cost the City $200,000 or more; and
4. Natural and civil disasters such as earthquakes, fires, floods, riots and health
epidemics."
Section 2. The Mayor shall sign this ordinance and the City Clerk shall certify to the
adoption of this ordinance and cause it, or a summary of it, to be published once in the Redlands
Daily Facts, a newspaper of general circulation within the City, and thereafter, this ordinance
shall take effect in accordance with law.
Wyor of the City of Redlands
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ATTEST
City erk
1, Lorrie Poyzer, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance
was adopted by the City Council at a regular meeting thereof held on the 15th day of May, 2007,
by the following vote:
AYES: Councilmembers Gilbreath, Gil, Gallagher, Aguilar; Mayor Harrison
NOES: None
ABSENT: None
ABSTAIN: None
Lorrie Poyzer,,C y lerk
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