In line with City policy and financial best practices, 10% of the general fund discretionary budget is set aside each fiscal year as a rainy day reserve, similar to a savings account.

This reserve serves as emergency funding for essential expenses, such as employee salaries and debt payments, to address emergencies, to address temporary revenue or cash shortfalls, or to provide stability during economic cycles.

The data shows the annual size of the reserve fund, equal to 10% of the general fund discretionary budget, based on each fiscal year’s adopted budget.

It is important to note that due to the Covid-19 pandemic and the resulting state of emergency, the reserve fund was utilized to help the City meet its financial obligations during challenging times. The reserve temporarily dropped below 10% during FY 2020-21 and was replenished in the following year, as allowed by City’s financial policy.

During each year’s budget development process, the City Budget Office calculates how much is needed in the reserve to reach the 10% requirement. The calculation is based on next year’s projected general fund discretionary budget and how much money is already in the reserve from the last fiscal year.

To learn more about the reserve fund, review the City's reserve fund policy.

To learn more about the City's budget process, visit the City Budget Office's Introduction to the Budget webpage.