Capitola City Councilmembers will discuss the possibility of increasing the city's reserve levels at Thursday's meeting.
Staff suggests that the city increase its Contingency Reserves from 10 percent to 15 percent and the Emergency Reserves from 5 percent to 10 percent.
According to a staff report, "the Contingency Reserve was established to provide a prudent level of financial resources to protect against temporary revenue shortfalls or unanticipated operating costs, and/or to meet short-term cash flow requirements. The Emergency Reserve was intended to protect against significant one-time costs, which might arise from major unpredictable emergency events."
Capitola ranked as a city with one of the lowest level of reserves by the Benchmark Report, staff reports.
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City Councilmembers will discuss that and other issues at Thursday's meeting, set for 7 p.m. March 14 at the council chambers, 420 Capitola Ave.