All fund balances, including the General Fund Reserve, shall be recognized as a one-time funding source, and all appropriations supported by fund balances should be appropriated for one-time uses or in conjunction with a long-term financial plan to cover short-term expenditure increases or revenue shortfalls to prevent budgetary imbalances.
In general, fund balance is established when assets are greater than liabilities at the end of a year. In practice, fund balance can be generated when temporary one-time revenues exceed expenditures in any year. One-time resources may include grants, revenue from the sale of assets, one-time expenditure savings, and revenue sources which may be available for more than one year but are either non-recurring or will be required to address future expenditure growth that is anticipated to exceed future revenue growth. One-time expenditures may include the following: program startup costs, short-term expenditure increases or revenue shortfalls to prevent budgetary imbalances, early debt retirement, capital costs, or other one-time expenditures as recommended by the CAO.
(Added by Ord. No. 10509 (N.S.), effective 1-4-18; amended by Ord. No. 10635 (N.S.), effective 12-19-19)