Title
A resolution adopting a General Fund Reserve Policy for the City of Mesquite.
Body
The City Finance Department is proposing to formalize certain financial policies of the City in order to strengthen financial operations and obtain City Council approval of each policy.
This policy is for setting and maintaining a General Fund Reserve level. The City desires to maintain a prudent level of financial resources to guard its stakeholders against service disruption in the event of unexpected temporary revenue shortfalls or significant, unpredicted one-time expenditures. The proposed General Fund Reserve policy is intended to document the appropriate Reserve level to protect the City’s credit worthiness and provide adequate cash flow based upon the traditional operating cycle. Reserves are accumulated and maintained to provide stability and flexibility to respond to unexpected adversity and/or opportunities and to minimize the costs associated with short-term cash borrowing.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Debbie Mol
Head of Department