BIB_2024

Importance of General Fund Reserves

Much of the City’s revenue is restricted and must be spent for specific purposes such as water, sewer, and landscaping or projects budgeted through the Capital Improvement Program. General City services, including police services, are paid for by the General Fund. While the City’s budget includes our General Fund unrestricted reserve of $33.3 million, which acts as a rainy-day fund for unforeseen circumstances, we must use these funds wisely as we never know when we might need them. For example, in the past the City spent nearly $5 million out of the City’s General Fund to battle Southern California Edison (SCE) and compel the California Public Utilities Commission to force SCE to underground power lines in Chino Hills, and $310k more to protect the 2,400-acre Tres Hermanos Ranch property from a massive solar facility project.

While these funds are crucial to fund public services and unforeseen circumstances, relying on them to fund an operating deficit is not a feasible or sustainable approach to maintaining a healthy City organization.