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Consider adopting updated General Fund General Reserve and Contingency Policies
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Administrator's Office (CAO) recommends the Board of Supervisors consider adopting updated General Fund General Reserve and Contingency Policies as presented in Attachment A.
SUMMARY:
A review of the County's General Fund General Reserve and Contingency Policies was performed to determine the adequacy of the reserve/designation level necessary to meet the risks of Solano County. At the January 30, 2025 Pension and Debt Advisory Committee meeting, it was concluded that these Policies required the changes recommended in this report.
The current General Fund General Reserve and Contingency Policies were established by the Board on February 13, 2007. On June 14, 2011, the Board approved changes to the County's Fund Balance Policy, which includes the General Fund General Reserve Policy (Reserve Policy), to conform to Government Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. These changes primarily impacted reporting and not budgeting. The current Reserve Policy requires that the General Reserve be maintained at a level equal to 10 percent of the County's total budget excluding transfers between funds (Operating Transfers-Out/In), with a minimum balance of $20 million at all times. This level was recommended in order to provide the County with sufficient working capital and a comfortable margin to support one-time costs for the following purposes:
* When the County faces economic recession / depression and the County must take budget action.
* When the County is impacted by a natural disaster or any other emergency.
* When the County experiences unexpected declines in revenues and/or when unpredicted large one-time expenditures arise.
The current General Fund Co...
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