HomeMy WebLinkAbout6/19/2018 Item 16, Rowley
Meeting Date: June 19, 2018
Subject: Item 16, Adopting the Financial Plan and the Budget and Amending the Fund Balance
and Reserve Policies
Dear Mayor Harmon and Members of the Council,
Reference the proposed Revenue Stabilization Reserve and its funding target of $1,000,000.
Interest rates will continue to rise. Undoubtedly CALPERS will be raising its interest rate, too.
Since we have $1 million that we can put aside now, why not use it to further pay down our
CALPERS debt so we can take advantage of a lower rate?
The City is and has been forward-looking in its fiscal policies. We have a 20% reserve; this is a
substantial buffer to carry us through rough times without the added influx of funds. Using this
$1 million now to save paying additional interest later just seems prudent. Not doing so when
we have the opportunity makes no sense to me.
Thank you for your time and your attention to this matter.
Sincerely,
Sandra Rowley
SLO Resident