(a) As used in this section:
(1) “Unencumbered General Fund Carryover Balance” means, for each fiscal year, the unappropriated balance of the General Fund (Fund 101) after all expenditures and encumbrances have been made, estimated at the beginning of the fiscal year in the annual budget ordinance.
(2) “Actual Year-End Fund Balance” means the actual Unencumbered General Fund Carryover Balance for any fiscal year reported after the books have been closed for that fiscal year.
(3) “Estimated Final Balance” means the Finance Director’s monthly estimate of the Actual Year-End Fund Balance produced at any point during the fiscal year, taking into account actual financial (revenue) results and supplemental or amended appropriations made during that fiscal year.
(4) “Current Year Estimated Resources” means anticipated revenue that will be received by the General Fund (Fund 101) in a fiscal year, reported to the Council in the annual budget submission made by the Mayor pursuant to Section 3.04(D) of the City Charter. Tax revenue that is directly deposited to the Capital Improvement Fund, the General Bond Retirement Fund, the Police Pension Fund, the Parks Improvement Fund, the Convention and Visitors Fund, or other funds other than the General Fund, pursuant to Section 133.12
of this Chapter or other ordinances, is not included in Estimated Resources.
(5) “Annual appropriations” means the annual General Fund expenditures authorized by City Council through an annual budget ordinance.
(b) It is the policy of the City to maintain a minimum Unencumbered General Fund Carryover Balance in order to assure financial stability and provide adequate financial reserves capable of preserving City operations in the event of economic stress or unforeseen financial events. The Unencumbered General Fund Carryover Balance shall be established in each annual budget ordinance and shall not be less than twenty-five percent (25%) of Annual Appropriations for that fiscal year.
(c) The Mayor’s annual budget submission made pursuant to Section 3.04
(D) of the Charter will reflect a carryover balance calculated in compliance with the above, unless the Council, upon the Mayor’s recommendation, determines in advance that this policy may be waived for the fiscal year in question. After submission of the budget, the Council may determine on its own to adjust or waive this policy to meet the needs dictated by current financial or economic conditions.
(d) Provided that the Mayor’s annual budget submission reflects compliance with this policy, the portion of the Actual Year-End Fund Balance of the prior fiscal year that exceeds twenty-five percent (25%) may be proposed for appropriation in the annual budget submission, notwithstanding that it may result in a budget in which Annual Appropriations exceed Current Year Estimated Resources. Nothing in this section shall be construed to limit the Council’s authority to amend the Mayor’s annual budget submission prior to adoption.
(e) The Finance Director will report monthly to the Council on the state of revenues and expenditures under the budget, including whether the Estimated Final Balance is consistent with the original budget plan, taking into account actual financial (revenue) results and any supplemental or amended appropriations made during the then-current fiscal year. If the Finance Director reports that the Estimated Fund Balance will not meet the requirements of this Policy, the Council will consider whether to i) waive the policy, or ii) enact immediate revenue enhancements and/or reduction of appropriations in order to bring the City’s revenue and expenditures into conformance with the policy.
(f) The Council’s decision to waive or enforce the policy shall be guided by the nature of the event that causes the financial stress at issue. If a large, unanticipated, one-time expenditure or anomalous revenue failure causes the Estimated Final Balance to fall below 25%, the policy should be waived with the assumption that it will be corrected in the next budget or, if necessary, over a period of years under a plan separately approved by the Council. If the stress is caused by long-term deteriorating economic trends or permanently changed revenue source factors, the Council should act under the policy to preserve the Unencumbered General Fund Carryover Balance, in order to maintain long term financial stability. (Ord. 2016-125. Passed 11-28-16.)