(A) Establishment of fund. The city hereby establishes a Rainy Day Fund.
(B) Source of revenues.
(1) The funds may receive transfers of unused and unencumbered funds from any fund for which the city imposes a property tax levy and any supplemental COIT distribution received by the city shall be deposited into the fund.
(2) On the last day of the city's fiscal year and before March 1 of the subsequent calendar year, the City Council of the city shall approve the amount, if any, of any unused and unencumbered funds available to be transferred to the Rainy Day Fund, which transfer may not exceed more than 10% of the city's annual budget for the current year.
(C) Purpose of fund. The fund is established in order to set aside monies from the normal operating budget of the town that can be used to meet unanticipated expenses that cannot be funded from existing appropriations, to meet cash flow needs between biannual distributions of property tax receipts and other periodic revenue distributions, and for bridging a gap caused by an unexpected shortfall or significant, delay in receiving revenue.
(D) Expenditures from fund. All expenditures from this fund shall be subject to appropriations by the City Council of the city. Before making an appropriation from the Rainy Day Fund, the City Council shall make a finding that the proposed use of the Rainy Day Fund is consistent with the intent of the fund.
(E) Amendment and termination. The fund shall continue in this form until amended or terminated by ordinance. Unless otherwise indicated by ordinance, the proceeds of the fund at termination shall be deposited into the General Fund.
(Ord. 2004-4, passed 4-19-04)