(A) The following shall apply to both the General Fund and Water and Sewer Fund. The minimum cash balance reserve to be committed shall be 25% of budgeted expenditures. An additional 10% cash flow reserve shall be committed in each fund for cash flow purposes. This 10% cash flow reserve shall be used at the discretion of the Village Administrator, provided that the 10% shall only be used for cash flow to address revenue that is expected but has not yet been received.
(B) The total 35% cash balance reserve required for each fund shall be calculated prior to the adoption of the annual budget as follows:
Projected beginning cash balance + budgeted expenditures = 35%
(C) As part of the annual budget process, the Village Administrator shall report to the Village Board the required 35% cash balance reserve. This 35% cash balance reserve shall be held in the General Fund and Water and Sewer Fund, respectively, and shall be approved by ordinance each year in conjunction with the adopted budget.
(D) A super majority vote of five affirmative votes of the Village President and Board of Trustees is required for the Village Board to take action on any item that will temporarily reduce the 35% cash balance reserve below this minimum target level, other than for cash flow purposes. In the event that the 35% cash balance reserve drops below this minimum target level through the approval of the Village Board, the Village Administrator will develop a plan, implemented through the annual budgetary process, to bring the balance back to the target level over a period of no more than three fiscal years.
(Ord. 21-13, passed 4-19-2021; Am. Ord. 23-15, passed 3-20-2023)