(A) There is hereby established within the general fund a tax rate stabilization reserve account. At the close of each fiscal year, the balance of the combined, city and school district, general fund undesignated fund balance, as determined by the official audits performed pursuant to § 35.017(Z) of this chapter, in excess of 1% of the total property tax commitment for the prior tax year, as determined by the Department of Revenue Administration, shall be transferred by the Finance Officer to a special nonlapsing tax rate stabilization account. The Finance Officer is hereby directed to establish the tax rate stabilization reserve account in which to transfer funds from any general fund undesignated fund balance surplus.
(B) In the event the combined general fund undesignated fund balance, as determined by the official audits performed pursuant to § 35.17(Z) of this chapter, is less than 1% of the total property tax commitment for the prior tax year, as determined by the Department of Revenue Administration, the Finance Officer shall transfer funds from the tax rate stabilization reserve account to the extent required to restore the combined general fund undesignated fund balance to 1% of the total property tax commitment for the prior tax year.
(C) The Board of Mayor and Aldermen may apply the balance or a portion of the balance against the subsequent year's property tax requirement subject to the following conditions:
(1) The Board of Mayor and Aldermen may apply a maximum of 50% of the balance against the projected tax rate during the development of the annual budget, subject to division (C)(2) of this section.
(2) The amount applied against the projected tax rate during the development of the annual budget shall not exceed the amount applied for the prior fiscal year by more than 10%.
(3) In the event that no funds were transferred into the tax rate stabilization reserve account for the prior fiscal year, the Board of Mayor and Aldermen may apply the remaining balance or a portion of the remaining balance, subject to division (C)(2) of this section, against the projected tax rate during the development of the annual budget.
(4) After the adoption of the annual budget, the Board of Mayor and Aldermen may apply the remaining balance, or reduce the amount applied against the tax rate, if the non-property tax revenues or net assessed valuation report to the Department of Revenue Administration are materially different, defined herein as 1%, from those estimated during the budget development process. The amount of the additional application or reduction shall be limited to the amount required to equalize the actual tax rate with the projected tax rate.
(D) No available balance in the tax rate stabilization reserve account shall be utilized for any purpose other than those authorized herein, without the specific approval of two-thirds of the Aldermen-elect.
(E) If, after the requirements of divisions (A) and (B) of this section have been met and the balance in the tax rate stabilization reserve account, as determined by the official audits performed pursuant to § 35.017(Z) of this chapter, is in excess of an amount equal to 5% of the property tax commitment for the prior tax year, as determined by the Department of Revenue Administration, then such excess shall be transferred, without further action, to the general fund undesignated fund balance.
(Ord. passed 11-6-02)