Measure description
In years where revenues are stronger than expected, the City sets aside some of its revenue in reserve funds. The City can use these funds during recessions, budget shortfalls, or other disruptions in revenue to help keep critical public services running.
The City Charter allows up to 10% of general fund revenue to be allocated to Economic Stabilization Reserves, or combined Rainy Day and Budget Stabilization Reserves.
Why this measure is important
The City’s budget is guided by financial policies that plan for unforeseen financial circumstances that cannot be factored into revenue and expenditure projections. The City Charter charges the Controller’s Office with proposing to the Mayor and Board of Supervisors financial policies addressing reserves, use of volatile revenues, debt, and financial measures in the case of disaster recovery, and requires the City to adopt budgets consistent with these policies once approved.
The adopted policy for these stabilization reserves determines when funds are deposited into each reserve, typically in years of strong revenue growth. Conversely, the adopted policy limits withdrawals from these reserves to periods of economic and tax revenue declines.
The target level adopted for these reserves is 10% of General Fund revenues. When the City’s stabilization reserves reach 10% of General Fund revenue, any additional amount the City is required to reserve is deposited into a different fund called the Budget Stabilization One-Time Reserve. This fund is not considered part of the “economic stabilization reserves” because it can be used when there is not a recession.
The interactive chart below presents the City's annual stabilization reserve amounts.
The chart's legend is below:
- Y-axis: Stabilization reserve amounts in millions
- X-axis: Fiscal years
Stabilization Reserves
How performance is measured
The Stabilization Reserves amount is calculated using the following methodology:
Budget stabilization reserves plus rainy day reserves.
The City withdrew from these reserves in FY21 to provide financial stability during the COVID-19 pandemic. As a result of the withdrawals, the FY21 reserve balance stood at $380.3 million. While the City did use other one-time reserves, modest overall weakness in tax revenues was more than offset by increased operating savings and revenues in departments. As a result, the City deposited $9.4 million to the Budget Stabilization Reserve in FY23.
Data
All stabilization reserves data comes from the Controller's Annual Comprehensive Financial Report. Stabilization reserve amounts are updated annually.
Additional Information
View San Francisco's Budget Status Reports and Budget Information.
View San Francisco's Five-Year Financial Plan.
City Performance Scorecards
This page is part of the City Performance Scorecards.
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