5l) Discussion and Possible Action Including Approval to Establish a Prudent Reserve of Measure B Funds and to Transfer 6.85% of the Balance of Measure B Funds into the Prudent Reserve on June 30th Each Fiscal Year for Measure B Facilities and Services as Recommended by the Measure B Kemper Ad Hoc Committee
(Sponsor: Health and Human Services Agency on Behalf of the Mental Health Treatment Act Citizen's Oversight Committee)
As any professional organization can concur, a prudent reserve is imperative for weathering unseen circumstances. The Measure B fund is no exception. Kemper recommended a 20.7% prudent reserve for Years 1-5. A previous ad hoc committee of the Measure B board recommended 12%, assessed monthly and retroactive to the beginning of revenue accumulation. While 6.85% is better than none at all, I strongly encourage the esteemed Supervisors to consider a more sufficient amount.
As any professional organization can concur, a prudent reserve is imperative for weathering unseen circumstances. The Measure B fund is no exception. Kemper recommended a 20.7% prudent reserve for Years 1-5. A previous ad hoc committee of the Measure B board recommended 12%, assessed monthly and retroactive to the beginning of revenue accumulation. While 6.85% is better than none at all, I strongly encourage the esteemed Supervisors to consider a more sufficient amount.