Ordinance 1928-93 - Laserfiche WebLink

EVERETT • ORDINANCE NO. /9 Rf 93 AN ORDINANCE creating the "Contingency Reserve" Fund No.160 as a reserve fund for the accumulation of Rainy Day funds. WHEREAS, the Everett City Council has recognized the need to provide for contingency funds for the City of Everett; and WHEREAS, uncertain economic conditions can result in diminished revenue collections while unforeseen events can create new requirements for expenditures; and WHEREAS, prudent financial management dictates that contingency reserve funds be made an integral part of a basic financial plan; and WHEREAS, the Mayor and Council jointly agree that it is in the best interest of the City to set money aside to meet unforeseen, unbudgeted expenses; and NOW, THEREFORE, THE CITY OF EVERETT DOES ORDAIN: Section 1: There is hereby created a new fund entitled "Contingency Reserve", Fund 160 (the "Fund")to accomplish the actions authorized in the subsequent sections of the ordinance. Section 2: The City shall contribute money to the Fund on an annual basis and the size of each annual contribution shall be set forth in each year's respective annual budget. All expenditures from the Fund shall be appropriated only upon approval of the City Council by a majority plus one vote at a regular meeting of the City Council. Section 3 A contribution of$100,000 shall be made to Rainy Day - Program 001 in 1993 and such amount shall not be set aside for any specific appropriation but instead shall be used for general contingency purposes. Appropriation from the Fund shall require final approval from the City Council, upon presentation of an expenditure plan. Section 4: The goal of such contributions to the Rainy Day Program 001 shall be to achieve a reserve level that is equal to two percent (2%) of the general fund budget by the year 1996 and five percent (5%) of the general fund budget by the year 2000.