[Added 11-30-2022 by Ord. No. 2022-04]
1. There is hereby created a reserve fund to be known as the "stabilization
reserve fund". The amounts deposited in this reserve fund are to be
used only for the purposes defined in this section.
2. The stabilization reserve fund shall be created for the purpose of
receiving, holding, and accounting for amounts designated as stabilization
reserves. These funds are to be contributed by the general fund, water
operating fund, wastewater operating fund, the sanitation operating
fund, and other funds as deemed appropriate by resolution of the City
Commission.
3. The minimum amount to be contained in the stabilization reserve fund
is sixteen (16%) percent of budgeted annual non-capital operating
expenses for each of the funds contributing stabilization reserves
into the stabilization reserve fund.
4. The maximum amount to be contained in the stabilization reserve fund
is thirty-five (35%) percent of budgeted annual non-capital operating
expenses for each of the funds contributing stabilization reserves
into the stabilization reserve fund.
5. Minimum funding for the stabilization reserve fund when the balance is less than the maximum level as established in subsection
4 of this section shall not be less than two (2%) percent of budgeted non-capital operating expenditures. This funding is to be transferred annually from the participating funds to the stabilization reserve fund.
6. Amounts held in the stabilization reserve fund are to be designated
by purpose for use only by the fund from which the funds were contributed.
Accounting process shall be established to provide for reporting by
purpose.
7. Amounts held in the stabilization reserve fund in excess of the "minimum
amount" established in this section may only be expended when certain
specific circumstances exist. The circumstances requiring the expenditure
of stabilization funds are not expected to recur on a routine basis.
The circumstances when it is necessary to appropriate or spend stabilization
amounts are subject to the objective criteria outlining the parameters
of acceptable uses of stabilization funds included below. The existence
of the circumstances must be declared by a four-fifths majority vote
of all members of the governing body establishing that one or more
of the criteria listed below exists:
a. Expenditures for emergency situations for life, health, or public
safety issues for which no existing appropriation exists;
b. Situations where a significant revenue decline arises that could
not have been reasonably been foreseen, and for which new revenue
is not available and transfers of existing appropriations are not
considered feasible or appropriate in maintaining existing service
levels;
c. Correcting the results of an inaccurate estimate, accounting error,
or budgeting error;
d. Expenditures where the proposed use is of a nonoperational nature
involving capital or technical purchases having a useful life of greater
than five years that will improve the efficiency of the City government.
These efficiency improvements should result in tangible benefits that
can be measured financially, through better service to the citizens,
or in increased productivity for City employees;
e. Expenditures where the proposed use is of a nonrecurring nature,
such as a study, start-up costs of a program whose ongoing costs are
otherwise funded, or matching funds for a grant. These expenditures
should result in tangible benefits that can be measured financially,
through better service to the citizens, or in increased productivity
for City employees;
8. Amounts held in the stabilization reserve fund that are below the
minimum threshold may be expended only under specific limited circumstances.
The circumstances when it is necessary to appropriate or spend below
the "minimum amount" required by this section, are set out below.
The existence of circumstances must be declared by a four-fifths majority
vote of all of the members of the governing body establishing that
one or more of the criteria listed below exists:
a. Expenditures for emergency situations for life, health, or public
safety issues for which no existing appropriation exists;
b. Situations where a significant revenue decline arises that could
not have been reasonably been foreseen, and for which new revenue
is not available and transfers of existing appropriations are not
considered feasible or appropriate in maintaining existing service
levels;
c. Correcting the results of an inaccurate estimate, accounting error,
or budgeting error.
[Added 11-30-2022 by Ord. No. 2022-04]
1. There is hereby created a reserve fund to be known as the "capital
reserve fund". The amounts deposited in this reserve fund are to be
used only for the purposes defined in this section.
2. The capital reserve fund shall be created for the purpose of accumulating
funds for the purpose of making purchases of capital items including
but not limited to land, infrastructure, equipment, and vehicles.
These funds are to be contributed by the water operating fund, wastewater
operating fund, the sanitation operating fund, and other funds as
deemed appropriate by resolution of the City Commission.
3. The funding level for all funds participating in the capital reserve
funs is to be determined in accordance with long term capital plans
adopted specific to each participating fund. The funding is to be
transferred annually from the participating funds to the capital reserve
fund.
4. Amounts held in the capital reserve fund are to be designated by
purpose for use only by the fund from which the funds were contributed.
Accounting processes shall be established to provide for reporting
by purpose.
5. Amounts held in the capital reserve fund are intended to only be
expended in accordance with a multi-year capital plan. The circumstances
when it is appropriate to spend capital amounts outside of this plan
are subject to the objective criteria outlining the parameters of
acceptable uses of capital funds as outlined below. The existence
of the circumstances must be declared by a majority vote of the governing
body establishing that one or more of the criteria listed below exists:
a. Situation in which an unexpected capital need has arisen outside
of the bounds of the established multi-year capital plan that could
not have been foreseen;
b. Circumstances when amounts included in the capital reserve fund are
determined to be in excess of the amounts needed to fund the current
multi-year capital plan and a need for other capital items outside
of the current capital plan exists;
c. Expenditures for emergency situations for life, health, or public
safety issues that involve public infrastructure for which no existing
appropriation exists. Under these circumstances, the City Commission
may also elect to allow capital reserve balances from other purposes
to be borrowed for a definite period of time.
6. The initial funds required to participate in the capital reserve
fund for which no current long term capital plan exists, must create
a long-term capital plan prior to the adoption of the fiscal year
2023 budget. These funds will begin contributing to the capital reserve
fund at that time. Funds that are required to participate by a Resolution
of the commission shall be given 15 months from the adoption of said
resolution to create a long-term capital plan and will begin participating
in the budget year immediately following the adoption of the capital
plan.