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HomeMy WebLinkAbout2020-09 Reiterating the need of a Reserve Fund Repealing 2010-18RESOLUTION 2020-09 A RESOLUTION REITERATING THE NEED OF A RESERVE FUND AND REPEALING RESOLUTION 2010-18 RECITALS: Per ORS 294.346, any municipal corporation, by ordinance or resolution of its governing body, may establish one or more reserve funds to hold moneys to be accumulated and expended. In FY 2009-2010 a Reserve Fund was established to help prepare for financial constraints. The City is required not less than the frequency of every loth anniversary of the date upon which the reserve fund was established to review the reserve fund and determine whether the fund will be continued or abolished. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1: A. Resources to the Reserve Fund will be identified during the annual budget process and may include the following: 1. Specific revenue streams such as taxes, franchises, charges for services, interest charges, etc. 2. During the year Council may elect to: a. Transfer surpluses from another fund when its projected ending fund balances reasonably exceeds the target amount for an acceptable period. b. Commit unanticipated resources ("windfalls") to be deposited to the Reserve Fund when doing so is preferential to other uses. B. Requirements of the Reserve Fund will be identified during the annual budget process and may include the following: 1. Appropriations to fund a capital improvement identified in the coming fiscal year for which sufficient funding sources have not been accumulated. 2. Appropriations to meet a financial obligation in the coming year that an alternative revenue source has not been identified and accepted. 3. Appropriations to fund a program or project in the coming year that will be repaid by a dedicated revenue stream in the subsequent year(s). C. The unappropriated ending fund balance of the Reserve Fund identified in the budget process is restricted from use. This amount cannot be transferred by resolution or used through a supplemental budget, unless necessitated by a qualifying emergency (ORS 294.371). Page 1 of 2 SECTION 2: This resolution takes effect upon signing by the Mayor. This resolution was duly PASSED and ADOPTED this 2nd day of June, 2020 Me issa Huhtala, City Recorder SIGNED AND APPROVED this2^A day of June, 2020. Reviewed as to form: David Lohman, City Attorney (John Stromberg, Mayor Page 2 of 2