135.12 BUDGET STABILIZATION ACCOUNT.

   (a)   The City Auditor is hereby authorized and directed to establish within the General Fund a reserve balance account known as the Budget Stabilization Account, Number 101-950- 54600.

   (b)   There is hereby established a Budget Stabilization Account to go into effect on January 31, 1999. The Budget Stabilization Account shall be used solely for the purpose of continuing basic City services during times of economic recession or unexpected revenue loss by the City.

   (c)   The Budget Stabilization Account will be funded annually in an amount up to five percent (5%) of the General Fund’s revenue for the preceding fiscal year. The reserve balance in the Budget Stabilization Account shall not be considered part of the unencumbered balance or revenue of the General Fund.

   (d)   No later than the 31st day of January each year beginning in 1999, the Auditor shall determine the balance in the General Fund on the preceding 31st day of December and shall transfer from the General Fund to the Budget Stabilization Account up to five percent (5%) of the General Fund’s revenue for the preceding fiscal year. The balance in the Budget Stabilization Account shall never exceed $1,000,000. The Auditor shall advise Council of any transfers to the Budget Stabilization Account from the General Fund.

   (e)   The balance in the Budget Stabilization Account shall never exceed five percent (5%) of the General Fund revenue for the preceding fiscal year.

(Ord. 98-98. Passed 11-17-98.)