In good times and bad, we must provide for future generations and protect our most vulnerable populations. Because of the national elections, the risk of drastic cuts to federal programs and the importance of a strong reserve cannot be overestimated. Reserves enable us to weather extreme events without having to immediately eliminate our housing and mental health programs. According to Berkeleyside, Berkeley receives around $11.5 million in federal funding, chiefly to help the City's most vulnerable, including spending on housing, supportive care, emergency shelter and health services.

 

The City Manager's proposed new General Fund Reserve Policy  is well developed, clear, concise, and easy to understand. As we recommended, it sets the minimum reserve level at 16.7% and increases it to align with best practices given Berkeley's strengths and risks. The Council is asked to vote on a policy to take steps towards a 30% reserve. At the same time, the policy allows for the use of excess equity on other needs, at Council's discretion. See Information Item 34 and Item 35  for more about General Fund Reserves.