committeesub
[COMMITTEE SUBSTITUTE FOR ]ORDINANCE NO. 241071
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Sponsor: Mayor Quinton Lucas
COMMITTEE SUBSTITUTE
Amending Chapter 2, Code of Ordinances, by repealing Section 2-1954 entitled "Fund balance and reserve policy" and enacting in lieu thereof a section of like number and subject matter; and directing the City Manager to require compliance with City partner agency policies for all relevant City contracts entered into or renewed.
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WHEREAS, the City has a thorough annual budget process, including quarterly budget analysis, and five-year business planning cycle during which Council, City staff, and residents have the opportunity to shape how the City spends taxpayer resources; and
WHEREAS, the City currently has a structural imbalance driven by expenditure growth exceeding revenue growth in the General Fund; and
WHEREAS, the City Council desires to maintain a prudent level of financial reserves to guard its citizens against service disruption in the event of unexpected temporary revenue shortfalls or unpredicted one-time expenditures, such as those seen in 2020 and 2021; and
WHEREAS, maintaining a strong fund balance can be critical in weathering an economic downturn, emergency capital repairs, or volatile revenue or unexpected expenditure; and
WHEREAS, fund balance is a focal point of credit rating agencies and investors; when governments maintain more fund balance, they are viewed more favorably and can achieve lower borrowing costs; and
WHEREAS, the Government Finance Officers Association (GFOA) recommends, at a minimum, no less than two months of regular general fund operating revenues or regular general fund operating expenditures for reserves and that local governments undertake a risk-based review of required reserves; and
WHEREAS, the City's regular general fund, special revenue funds, proprietary funds, debt service funds, capital projects funds, and...
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