HomeMy WebLinkAboutRes 1774 - Financial Reserve Policy (Repealed by Res 1861)%`. T 1
Washington
Cover page to Resolution 1774
The full text of the resolution follows this cover page.
RESOLUTION OF THE CITE' COUNCIL OFTHE, CI'T'Y OF
TUKWILA,, WASHINGTON, ADOPTING A FINANCIAL RESERVE
POLICY TO I MAINTAIN AN ADEQUATE FUND BALANCE,
ALLOWING MITIGATION OF RISKS TO REVENUES.,
Resolution 1774 was amended or repealed by the
following resolutions.
ecectici
Resolution No. 1774
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A FINANCIAL RESERVE
POLICY TO MAINTAIN AN ADEQUATE FUND BALANCE,
ALLOWING MITIGATION OF RISKS TO REVENUES.
WHEREAS, for the well -being and sustainability of the community, its residents,
and businesses, it is important that the City of Tukwila be prepared to respond to any and
all situations that could result in a risk and /or crisis to the City's finances, including but not
limited to revenue shortfalls and unanticipated expenditures; and
WHEREAS, it is the responsibility of the City Council of the City of Tukwila to provide
policy direction for the City's biennial budget through the passage of motions and
ordinances, adoption of resolutions, and final approval of said budget; and
WHEREAS, a financial reserve policy establishes, attains, and restores minimum
fund balances, including self- insured health care reserve funds, and specifies review and
reporting of such;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. At the close of each fiscal year, the General Fund balance and the
Reserve Fund balance shall each equal or exceed 10% of the previous year General
Fund revenue, exclusive of significant non operating, non recurring revenues such as
real estate sales or transfers in from other funds. In regard to the Enterprise Funds, at
the close of each fiscal year the unrestricted fund balance shall equal or exceed 20%
of the previous year revenue, exclusive of significant non operating, non recurring
revenues such as real estate sales, transfers in from other funds or debt proceeds.
Section 2. All expenditures from the Reserve Fund shall be authorized by the City
Council.
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Section 3. The prescribed minimum fund balances outlined in Section 1 shall be
attained no later than the end of the 2014 fiscal year. Should a fund balance decline
below the prescribed minimum balance after 2014, City Administration shall establish
a plan, no later than the end of the fiscal year following the year of decline, to restore
the fund balance to the prescribed minimum level. The plan shall be presented to and
approved by the City Council.
Section 4. In regard to the self- insure d
reserve balance in each of its self- insured
times, or 250 of the actuarially dete
reserve. The contingency reserve balan
balance and recorded as one liability in
funds.
health care funds, the City shall maintain a
health care funds in an amount equal to 2.5
rmined IBNR (incurred but not reported)
ce will be combined with the IBNK reserve
each of the self- insured health care plan
Section 5. A report showing compliance with the Financial Reserve Policy shall
be provided to the City Council on an annual basis, no later than July 1 of each year.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of Q Clb-b a, 2012.
ATTEST /AUTH ENTICATED:
dz� O F J,�t-
Christy O'Flah rty, MMC, City Clerk
Verna Seal, ouncil President
APPROVED AS TO FORM BY:
(�R' aek�k
Shelley M. Kerslake, City Attorney
Filed with the City Clerk:
Passed by the City Council: C�
Resolution Number:
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