(a) There is hereby established a Rainy Day Reserve Fund, to which shall be credited amounts reflecting a positive budgetary balance from the General Fund as of December 31 of each year.
(b) The following principles, representing sound fiscal management, will govern the preparation of the annual General Fund budget and the maintenance of the Rainy Day Reserve Fund established pursuant to division (a) of this section:
(1) The annual General Fund budget should be prepared and considered in a prudent manner without reliance on unrealistic revenue or expenditure assumptions.
(2) The annual General Fund budget should first fully account for payment of all current liabilities including all necessary operating expenses to be incurred during the budget year.
(3) The initial budgetary goal each year should be to fully fund all current obligations so as to eliminate any year-end GAAP deficit that may exist.
(4) Consistent with divisions (b)(2) and (b)(3) of this section, the Mayor should propose and the Council should adopt annual General Fund budgets which provide for a reserve in excess of anticipated expenditures which may then be credited to the Rainy Day Reserve Fund.
(5) The Rainy Day Reserve Fund should accumulate to at least a level equal to two percent (2%) of General Fund expenditures. It should only be reduced during significant periods of economic downturn or to fund unanticipated one-time General Fund obligations. If drawn upon, the City will seek to replenish the Rainy Day Reserve Fund in its entirety during the succeeding budget year.
(Ord. No. 1987-92. Passed 1-11-93, eff. 1-21-93)