HomeMy WebLinkAboutResolution 2020-034n.
RESOLUTION NO. 2020-034
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, ESTABLISHING A RESERVE POLICY
FOR THE ATASCADERO TOURISM BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, reserves are a function of revenues, expenses and remaining fund balances; and
WHEREAS, fiscal stability is a critical factor in the overall health and sustainability of the
Atascadero Tourism Business Improvement District (ATBID); and
WHEREAS, sound financial management includes the practice and discipline of
maintaining adequate reserve funds; and
WHEREAS, it is ATBID's desire to maintain a sufficient level of reserve funds to provide
for the continuation of ATBID operations in the event of natural or fiscal emergencies or other
significant event; and
WHEREAS, the prudent level of reserves is not a static number or percentage of ATBID
expenditures, but instead is a function of the economic climate, exposure to risk, and cash flow needs;
and
WHEREAS, the City Council may increase the ATBID budget to respond to natural or fiscal
emergencies or other significant events affecting, or potentially affecting, lodging and tourism
businesses; and
WHEREAS, the City Council desires that the ATBID has the ability to promptly anticipate
and/or quickly respond to events or circumstances that may or will affect lodging and tourism
businesses; and
WHEREAS, the ATBID Board has requested assurance that in the event of a natuiial or fiscal
emergency, or other significant event, the City will do all within its power to insure in that the ATBID
has access to all of its funds on hand if necessary. = _
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City Qf Atascadero:
SECTION 1. Reserves should be evaluated, funding goals considered and heaccumulation
and/or expenditure of reserves determined as part of adoption of the biennial budget.
SECTION 2. As part of the biennial budget process, three key measurements should be
evaluated both independently and in conjunction with one another to determine the prudent level
of ATBID Fund Reserves for that two-year budget cycle:
PER 1. State of the economy
2. Cash flow needs
3. Costs of potential natural disasters and emergencies or other significant events
City of Atascadero
Resolution No. 2020-034
Page 2 of 2
SECTION 3. There shall be no upper limit on the amount of ATBID Fund Reserve; rather n
reserve levels shall be set based on the criteria set in Section 2. The lower limit should be no less than
20% of budgeted ATBID expenditures
SECTION 4. In the event of natural or fiscal emergencies or other significant events, the
City Council will act quickly and with urgency to address ATBID budget concerns so that the ATBID
Board has the ability to promptly anticipate and/or quickly respond to such events.
SECTION 5. In the event of natural or fiscal emergencies or other significant events, the
ATBID Fund Reserve level may fall below the lower limit of 20% of budgeted ATBID expenditures;
however, within 6 months of the declared emergency, the ATBID Board shall adopt a long-term
financial plan to bring the ATBID Fund Reserves up to the minimum level prescribed above.
SECTION 6. The City Manager and Director of Administrative Services are hereby.
authorized and directed to implement the policy hereby established.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 9th day of
June, 2020.
On motion by Council Member Fonzi and seconded by Council Member Funk, the foregoing
Resolution is hereby adopted in its entirety on the following roll call vote:
AYES: Council Members Bourbeau, Fonzi, Funk, Newsom and Mayor Moreno ON"
NOES: None
ABSENT: None
ABSTAIN: None
CITY OF ATASCADERO
Heather Moreno, Mayor
Qof Lira K. (ti ensen, City Clerk
APPROVED /TO FORM:
Brian Pierik, City Attorney