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ATTACHMENT 4 <br /> THE CITY OF <br /> RESERVE POLICY <br /> PLEASANTON, <br /> Purpose <br /> The purpose of this policy is to establish a target level of reserve for the General Fund <br /> as well as specified Enterprise Funds and Internal Service Funds. Designating funds to <br /> reserves supports the City Council's goal of ensuring fiscal stability. For the purpose of <br /> this policy, the General Fund does not include any sub-funds of the General Fund such <br /> as the Rainy Day Fund. <br /> This reserve policy meets the following objectives of the City: <br /> • Ensure financial stability; <br /> • Maintain operations in the event of economic uncertainty or emergency; and <br /> • Make necessary repairs and replacements in the event of one-time, large-scale <br /> capital breakdown. <br /> Reserve Levels and Establishment <br /> 1. General Fund Reserves <br /> Unassigned Fund Balance: The City shall maintain an unassigned fund balance <br /> of between 16.7% to 25.0% of annual General Fund operating expenditures <br /> excluding transfers to other funds and significant one-time expenditures. The target <br /> level for the reserve is 20.0%. The reserve shall be calculated using next fiscal <br /> year's budget or the current fiscal year budget if next fiscal year's budget is not <br /> available. <br /> Should the Unassigned Fund Balance fall below 16.7%, one-time <br /> revenues/contributions should be evaluated for the reserve. For example, it may be <br /> necessary to make a one-time contribution from the Rainy Day Fund. <br /> Restricted Fund Balance - PARS 115 Pension Trust: The City Council has <br /> implemented proactive measures to pay down the City's unfunded pension <br /> obligation. A pension trust has been established and funds in the trust account can <br /> only be used for pension contributions. Funds can be withdrawn during challenging <br /> times in accordance with the PARS Trust Withdrawal Policy adopted by the City <br /> Council in February 2020. <br /> Committed and Assigned Fund Balance: Program reserves such as Crisis <br /> Response approved by the City Council or City Manager shall not be counted toward <br /> the General Fund reserve level stated above. <br /> City of Pleasanton Reserve Policy <br />