(A) Monies in the Fund shall grow, on an annualized basis, so that the interest earned by monies in the Fund, and interest paid back on appropriations from the Fund subject to repayment programs, collectively exceed appropriations for road maintenance programs. Annually, and as part of the budgetary process for city government generally, the Expenditure Review Committee, using the best economic records and information available, shall recommend to the Mayor and the Common Council a target growth rate for the succeeding calendar year, commencing with the calendar year 2009; the target growth rate for the calendar year 2008 is stipulated by the Common Council to be 1.9%. The target growth rate to be recommended by the Expenditure Review Committee, subject to actual approval by the Mayor and the Common Council, shall not be less than 30% nor more than 50% of the projected interest earnings by the Fund for the succeeding calendar year. The approval of the target growth rate by the Mayor and the Common Council shall take place as part of the annual budgetary process for city government; should the Mayor and Common Council be unable to agree upon the target growth rate, the target growth rate recommended by the Expenditure Review Committee shall control for the succeeding calendar year.
(B) An example of establishing the target growth rate (for illustrative purposes only) is as follows:
(1) Assume the Fund balance as projected by the Expenditure Review Committee as of January 1, 2008 to be $26,500,000.
(2) Assume that earnings on loaned and advanced monies, as well as earnings on monies retained within the Fund, shall average 5% per annum for the calendar year 2008, giving rise to projected interest earnings of $1,325,000.
(3) Assume that the Expenditure Review Committee recommends that 80% of such interest earnings shall be appropriated for road maintenance programs per annum, which recommendation shall be accepted by the Mayor and Common Council. If 80% of the interest earnings are targeted for road maintenance programs, the balance of the interest earnings, to-wit: 20%, shall be added to and become a part of the Fund and ultimately the Fund balance; 20% of the 5% interest earnings represents a 1% target growth rate; 20% of the projected interest earnings would be $265,000 to be added to the Fund balance. The appropriation for road maintenance programs, out of such interest earnings, would be in the amount of $1,060,000 under the example herein set forth.
(Ord. 5086, passed 12-17-2007)