Investment Policy: The Investment Policy provides guidelines for the prudent investment of the City of Sausalito's temporary idle cash and outlines the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.
Financial Reserves Policy: The Financial Reserves Policy is taken into account during the preparation of the City Budget. The key components of this policy are:
Budget Stabilization Shortfall Reserve Policy: Five percent (5%) of the City’s annual expenditures are set aside annually and assigned by the City Manager as prescribed by Governmental Accounting Standards Board Statement No. 54, to provide for budget shortfalls as a result of 5% economic fluctuations in the City’s revenue base.
Emergency Shortfall Reserve Policy: Ten percent (10%) of the City’s annual expenditures are set aside annually in unassigned general fund balance as the City's emergency or "rainy day" fund and is subject to further appropriation by the City Council.
