2.01.006_Use of Restricted Reserve FundsPolicy #: 2.01.006
Type: City Council
Effective Date: 2011
CITY OF ROHNERT PARK Former Policy #: 415.35
CITY COUNCIL POLICY
SUBJECT I POLICY NO. I RESO. NO. I EFF. DATE I PAGE
FISCAL POLICY: 1 1 2011-56 I 6/28/2011 I 1 OF 1
USE OF RESTRICTED RESERVE FUNDS
PURPOSE
The City of Rohnert Park has established a number of Restricted Reserve Funds enabling
carryover of funds from year to year, to help meet long-term financial goals. The below policy
establishes criteria for use of these Funds, to help ensure consistency in fund allocation and long-
term financial sustainability.
POLICY
Effective with the 2011-2012 fiscal year, the City shall establish the following Restricted Reserve
Funds:
1. General Fund Reserve
2. Capital Vehicle Replacement
3. Facility Improvements
4. Capital Improvement Infrastructure
Restricted Reserve Funds may be accessed for purposes other than those for which they were
established only under extraordinary circumstances, which include:
• Costs related to natural or human -made disasters;
• Costs associated with major and extended economic downturns;
• Needs resulting from significant reductions in State budget allocations; and
• Significant unexpected and unbudgeted operational costs that cannot be met with
current General Fund allocations.
The City Manager will first evaluate the City's financial condition and circumstances indicating a
possible need to access Restricted Reserve Funds, and make a recommendation to City Council.
A four-fifths affirmative vote by City Council is then required prior to use of Restricted Reserve
Funds for any purpose other than those for which they were established. Funds shall be
replenished at the rate of 50% the following fiscal year and 50% the subsequent fiscal year,
unless otherwise determined by City Council.