Chapter 3.12
RESERVES AND FUNDS
Sections:
3.12.040 Continuance, establishment and maintenance of funds.
3.12.110 Contribution to and maintenance of funds.
3.12.010 Capital reserve.
Pursuant to SMC 3.08.010, a capital reserve is established. The capital reserve is to be used to fund capital purchases or projects. This reserve is funded by the city council setting aside funds to be deposited into this reserve. This fund should have a year end balance of not less than five percent of operating expenditures. (Ord. 1000 § 2, 2011; Ord. 705, 1986; Ord. 597 § 3, 1982; prior code § 3-202)
3.12.020 Special reserve.
The special reserve is established to be used for extraordinary items that may arise from time to time. This reserve is funded by the city council setting aside funds to be deposited into this reserve. This fund should have a year end balance of not less than ten percent of operating expenditures. (Ord. 1000 § 2, 2011)
3.12.030 Emergency reserve.
An emergency/contingency reserve is established. The emergency/contingency reserve will be maintained to have a year-end minimum balance of not less than fifteen percent of any given year’s general fund operating expenditures; at each year end the reserve should have not less than fifteen percent of the year’s operating expenditures. This reserve is to be used for nonbudgeted emergencies that may occur, including weather emergencies, economic emergencies, equipment breakdown emergencies, and other unforeseen emergencies. (Ord. 1000 § 2, 2011; Ord. 597 § 3, 1982; prior code § 3-204)
3.12.040 Continuance, establishment and maintenance of funds.
In addition to reserves specifically established by SMC 3.12.010 through 3.12.030, the treasurer is authorized and directed to continue, or to establish, such funds as may be required by city council approved budgets, grants and other appropriations. In the continuance, establishment, and maintenance of such funds the treasurer will conform to all provisions of SMC 3.08.010. The treasurer will maintain only the minimum number of funds consistent with legal and operating requirements. (Ord. 1000 § 2, 2011; Ord. 597 § 3, 1982; prior code § 3-205)
3.12.110 Contribution to and maintenance of funds.
The requirement of general fund contributions to those reserves established by SMC 3.12.010, 3.12.020 and 3.12.030, and the provisions relating to a minimum year-end balance, may be waived by resolution of the city council at the time of adoption of the annual budget upon the written recommendation of the city manager. (Ord. 1042 § 2 (Att. B), 2017; Ord. 1000 § 2, 2011; Ord. 793 § 1, 1991)