Title
Reserve Policy Review
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a review of the City's Reserve Policy.
Report
Issue:
Whether to receive a review of the City's Reserve Policy.
Staff Contact:
Aaron BeMiller, Finance Director, 360.753.8465
Presenter(s):
Jay Burney, City Manager
Background and Analysis:
The City currently has two General Fund reserves, the Emergency Reserve which is required to equal 10% of annual budgeted revenues and, the Budget Stabilization Reserve which annually receives 10% available fund balance less carry-overs and reserves. Neither of these reserves has a cap and are currently designed to run in perpetuity.
In the last two years the City has held conversations about the reserves and whether they are meeting the City needs as the highest best use of available resources where the Council affirmed their desire to keep the reserves, and policies, as they are currently.
The 2024 budget process brought forward renewed interest in discussing the General Fund reserve policies. This agenda item will discuss the reserves, conditions of their use, and potential policy changes aligning with best practices.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
One of the goals of the City's budget process is to ensure that city services are provided equitably to our residents and business communities, as well as the greater Olympia community. This agenda item is not expected to further impact known disparities in our community.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City finances and fiscal governance.
Financial Impact:
There is no financial impact associated with this agenda item.
Options:
1. Receive information on reserve policy review.
2. Do not receive information on the reserve policy review.
3. Resc...
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