Chapter 3.36
EMERGENCY RESERVE FUND
Skip Chapter Digest
Sections:
3.36.010 Established.
3.36.020 Amount of reserve.
3.36.030 Use of reserve.
3.36.040 Emergency defined.
3.36.010 Established.
There is established an "emergency reserve fund" for the city which shall be an element of the city’s general fund. (Ord. 98-2 § 1, 1998).
3.36.020 Amount of reserve.
The emergency reserve fund shall be funded annually from unallocated funds; the city shall attempt to maintain the fund at an amount equal to 10 percent of the city’s annual general fund budget. The fund shall be provided a separate accounting number, and shall draw interest at the rate of interest equal to the average rate of interest obtained by the city’s invested funds. (Ord. 98-2 § 1, 1998).
3.36.030 Use of reserve.
A. Money shall be disbursed for the emergency reserve fund only after passage of a resolution of the city council authorizing such disbursement.
B. The city council resolution approving disbursement of funds from the emergency reserve fund shall identify the amount to be disbursed and an emergency which justifies and requires the disbursement. (Ord. 98-2 § 1, 1998).
3.36.040 Emergency defined.
As used in this chapter, "emergency" means:
A. A catastrophic earthquake, flood, windstorm, firestorm, mudslide or similar natural event causing widespread damage in the city of Sonoma;
B. A severe and unexpected financial shortfall resulting from acts of the State Legislature re-allocating funds otherwise anticipated in the current adopted city budget to be paid to the city’s general fund;
C. Unbudgeted and substantial financial obligations imposed upon the city by the United States or by the state of California;
D. A court order, judgment or settlement resulting from the conclusion of litigation brought against the city requiring the expenditure of a substantial unbudgeted sum;
E. Such other emergency as determined by the city council after conducting a noticed public hearing;
F. Such other emergency as declared by unanimous vote of the city council, or by proclamation of the President of the United States or the Governor of the state of California. (Ord. 98-2 § 1, 1998).