HomeMy WebLinkAboutR-2140 - Establishing General Fund Balance and Contingency Reserve PoliciesCITY OF MARYSVILLE
Marysville.Washington
RESOLUTION NO.;l J Lf 0
A Resolution of the City of Marysville establishing General Fund Balance and
Contingency Reserve Policies.
WHEREAS,the City Council of the City of Marysville during the 2005 Budget
process recommended the desire to address the appropriate minimum level of Fund
Balance for the General Fund; and
WHEREAS.the City Council of the City of Marysville desire the creation of a
General Fund Balance Policy to adequately meet cash flow needs.emergent or
unforeseen needs. and to allow for orderly adjustment of adverse changes in revenues;
and
WHEREAS,the City Council of the City of Marysville has reviewed and
deliberated on recommended General Fund Balance Policies;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of
Marysville that there shall be established a General Fund Balance Policy as follows:
A. General Fund Balance
It will be the policy of the City to establish and maintain a General Fund Balance of at
least ten percent (10%) of the total General Fund budgeted revenue,excluding the
beginning fund balance and identified one-time revenues.
Any and all expenditures from the General Fund Balance Reserve account shall require
a super majority vote of the entire City Council.
B.Contingency Reserve
Separate from, and in addition to the General Fund Balance it will be the policy of the
City to establish and maintain a contingency reserve in accordance with RCW
35A.33.040. The reserve will be available for unforeseen urgent or emergency needs.
The contingency reserve is intended to provide for unanticipated expenditures or
Reserve Policy
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revenue shortfalls of a non-recurring nature. The maximum allowable amount in the
contingency reserve is 37.5 cents per thousand dollars of assessed valuation.
To allow for transition to the General Fund Balance Reserve often percent (10%) level
a five percent (5%) reserve will be established for 2005 and during succeeding budget
processes the Finance Director will recommend an amount to be contributed to the
General Fund Balance Reserve and Contingency Reserve for each annual budget.
/>.t ""-~-..-IAdopted this day of --I.fIYJJ'-f/b--.:....:::..:::..~:..4-----,2005.
CITY OF MARYSVILLE
By3~;(;(~
Mayor
0~
CITY CLERK
Approved as to form:
By~f<~
CITY ATTORNEY
Reserve Policy
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3/1/2005