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Rossmoor board approves first reading of capital-reserve policy, sets budget hearing dates
Summary
The board approved a first reading of a revised fiscal-policy creating a nine-month operating reserve and a capped capital reserve, and set preliminary and final public hearings for the FY budget; the change will be reviewed annually with the five-year fiscal plan.
Rossmoor's board approved the first reading of an updated Preservation of District Fiscal Resources policy that defines an operating reserve equal to nine months of operating expenditures and establishes a capital-reserve cap (proposed at $2,000,000 with board-authorized exceptions for specific projects).
Josh (finance) explained the nine-month buffer is intended to maintain cash flow during the April'December period when property-tax receipts are low; under current estimates that nine-month operating reserve is approximately $1.4 million. The capital-reserve bucket is intended to let the district earmark funds for known multi-year capital needs while limiting unused buildup.
Directors agreed the policy should be reviewed annually after the audit as part of the district's five-year fiscal-plan review and directed staff to add a language amendment aligning the reserves review with the five-year plan.
The board approved the first reading by roll-call vote (five ayes). Staff also requested the board set two budget public hearings to comply with policy: a preliminary hearing on May 12 and a final hearing on June 9. Directors approved the proposed hearing schedule so the board can finalize the budget at the June meeting.
