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THE CITY OF 1 7 <br /> CITY COUNCIL AGENDA REPORT <br /> pLEASANTON. <br /> November 15, 2016 <br /> Finance <br /> TITLE: APPROVAL OF THE RESERVE POLICY FOR THE CITY'S OPERATING <br /> FUNDS <br /> SUS 'MARY <br /> The proposed reserve policy establishes minimum, target, and maximum reserve levels <br /> for the City's operating funds to be available to respond to economic downturns or an <br /> emergency situation <br /> RECOMMENDATION <br /> Approve the attached Reserve Policy <br /> FISCAL IMPACT <br /> There is no financial impact associated with approving the proposed Reserve Policy <br /> However, adopting a reserve policy for the City's operating funds helps ensure that the <br /> City will have sufficient resources to make necessary repairs and replacements in the <br /> event of a one-time large-scale capital breakdown as well as ensure the City can <br /> withstand reduced revenues from economic downturns or natural disaster Finally, <br /> adopting a comprehensive reserve policy will be looked upon favorably by rating agencies <br /> that prefer healthy reserves so that there is a degree of assurance that debt service <br /> payments will be made Higher rated bonds result in reduced cost of borrowing <br />