Councilmember Tammy Kim Advocates for Maintaining Irvine’s 25% General Fund Reserve Policy
Irvine, CA – In response to recent discussions regarding the City of Irvine’s General Fund Reserve levels, Councilmember Tammy Kim has released a memo emphasizing the importance of maintaining the city’s existing 25% reserve policy. This advisory outlines the key points addressed in the memo and the actions being taken.
At the June 11 City Council meeting, Vice Mayor Agran proposed permanently reducing the General Fund Reserve levels from 25% to 21% and reallocating $6 million from the city’s savings account to various organizations, including The Cube and Groundswell. In response, Councilmember Kim requested that the matter be reviewed by the Finance Commission before any funds are distributed.
Councilmember Kim expressed significant reservations about lowering the reserve levels, citing the current volatile economic conditions and the budget deficits of nearby cities such as Santa Ana, Orange, and Fullerton. She highlighted the importance of maintaining financial stability and the potential risks of depleting the city’s reserves without a compelling reason.
Moreover, while acknowledging the merit of some causes suggested by Vice Mayor Agran, Councilmember Kim emphasized the need for a structured approach to funding public health and school safety initiatives. She proposed establishing a policy subcommittee within the City Council to identify core policy objectives before allocating reserve funds.
