§ 6-110. Budget Stabilization Reserve. 235

   (a)   The Director of Finance shall create and maintain a Budget Stabilization Reserve as a separate fund which shall not be commingled with any other funds of the City. For each fiscal year, the Director of Finance shall make deposits to such Fund no later than three months after the start of such year in such amount as may be necessary to increase the balance in the Budget Stabilization Reserve to the amount appropriated by the Council to the Budget Stabilization Reserve pursuant to Section 2-300(7).

   (b)   The Director of Finance shall invest the moneys deposited in the Budget Stabilization Reserve in like manner to other moneys in the General Fund not needed for immediate expenditure by the City. Interest and other earnings on such money shall accrue to the Budget Stabilization Reserve.

   (c)   The Director of Finance shall allow withdrawals from the Budget Stabilization Reserve only upon (i) approval by ordinance of a transfer of appropriations from the Budget Stabilization Reserve, pursuant to Section 2-300(6), and only for the purposes set forth in such transfer ordinance; and (ii) either:

      (1)   A certification by the Director of Finance that General Fund Revenues actually received by the City during the prior fiscal year were at least one percent (1%) less than the General Fund Revenues set forth in the Mayor's estimate of receipts pursuant to Section 2-300(3); or

      (2)   A certification by the Director of Finance that such withdrawal is necessary to avoid either a material disruption in City services or to fund emergency programs necessary to protect the health, safety or welfare of City residents; and that it would be fiscally imprudent to seek emergency appropriations pursuant to Section 2-301(a). Such certification must be approved either by (i) a resolution adopted by two-thirds of all of the members of the Council, or (ii) an agency of the Commonwealth with responsibility for ensuring the fiscal stability of the City.

   (d)   Expenses incurred or to be incurred as a result of any interest arbitration award, to the extent such expenses exceed those anticipated by the Director of Finance in the most recent financial plans submitted to any State agency prior to the issuance of such award, or, if no such plans have been submitted within the immediately preceding twelve months, in the most recent financial plans certified to the Council by the Director of Finance, shall not be considered in determining the need for any withdrawal from the Budget Stabilization Reserve.

   (e)   The Director of Finance shall set forth a projection of the status of the Budget Stabilization Reserve in any Five-year Plan the Director prepares. 236

_______________

 

Notes

235	Added by approval of the voters at the election held on November 9, 2011, and certified on November 28, 2011. See Bill No. 100303 (approved April 27, 2011); Resolution No. 100314-A (adopted April 14, 2011).
236	Added by approval of the voters at the election held on May 16, 2023, and certified on June 5, 2023. See Bill No. 220733 (approved March 1, 2023); Resolution No. 220743 (adopted February 16, 2023). See Charter subsection A-200(25) for effective date.