2009-10 Adopted Budget - City of Hoquiam

2) Sustain the current level of City servicesIn general, the City shall endeavor to support ongoing operations with ongoingrevenues, but may use reserves on a one-time basis to support City servicespending the development of a longer term financial solution. However, the Citywill strive to use reserves in no more than one biennium to support Cityoperations. If reserves are used, the City will attempt to replenish these reservesat the end of the biennium, if a surplus exists, but no later than the bienniumfollowing their use.b. It will be the policy of the City to establish a Revenue Stabilization Fund with agoal of at least eight percent (8%) of the total General Fund budgeted revenue,excluding identified one-time revenues. These operating revenues aremaintained to:1) Address temporary revenue shortfalls and payment of approvedexpenditures due to cash flow shortages; and2) Sustain City services in the event of a catastrophic event such as anatural/manmade disaster (e.g. earthquake, windstorm, flood, terrorist attack)or a major downturn in the economy.Annual contributions will be budgeted from General Fund resources asavailable to maintain the target level reserve. This shall be in addition to thegoal of the maintenance of forty- five days operating cash within the GeneralFund itself. All expenditures drawn from this fund shall require prior Councilapproval unless previously specifically authorized by the City Council forexpenditure in the annual budget.c. In accordance with RCW 35A.33.145, the City will endeavor to maintain aContingency Reserve Fund with resources not less than $0.375 per $1,000 ofassessed valuation. Annual contributions will be budgeted from General Fundresources as available to maintain the target level reserve. This shall be inaddition to the maintenance of forty-five days operating cash within the GeneralFund itself. All expenditures drawn from this fund shall require prior Councilapproval unless previously specifically authorized by the City Council forexpenditure in the annual budget.d. It will be the policy of the City to maintain at its discretion a Council Projects Fundin amount of $100,000. This fund will serve as a hedge against economicfluctuations, fund future one-time operational and capital needs or support Cityservices on a one-time basis pending the development of a longer term financialsolution. The initial source of funding for this reserve is the 2005 year endingsurplus. Restoration of this reserve is at the City’s discretion.9. Investment PoliciesThe Finance Director will submit an investment policy from time to time to theCity Council for review and adoption.21