File #: RES-09:186    Version: 2 Name: Establishment of required minimal financial reserves
Type: Resolution Status: Passed
File created: 11/10/2009 In control: Finance & Administration Council Committee
On agenda: Final action: 11/17/2009
Title: A RESOLUTION TO ESTABLISH THE REQUIRED MINIMUM FINANCIAL RESERVES IN THE GENERAL FUND
Sponsors: Finance, Mayor's Office
Indexes: Policy - creation/amendment
Attachments: 1. Oct-09 Report - Effects of Change in Reserve Requirements, 2. Oct-09 Required Reserves Report, 3. Oct-09 Comparison of Reserve Requirement Methods, 4. Required Reserves 2009 = RES-03-705, 5. Sep-09 BUDGETING - Appropriate Fund Balance GFOA, 6. Sep-09 BUDGETING - Appropriate Reserves AML
Related files: RES-03:705, MIN-09:125

Title

A RESOLUTION TO ESTABLISH THE REQUIRED MINIMUM FINANCIAL RESERVES IN THE GENERAL FUND

Body

WHEREAS; Resolution No. 03-705 previously established a required minimum General Fund Reserve at 30%; and

 

WHEREAS, the City Council of the City of Jonesboro, Arkansas, recognizes that the current requirement of 30% is far higher than levels established by the Arkansas Municipal League’s recommended two months of General Fund Revenues; and exceeds the recommendations of the Government Finance Officers Association (GFOA), which advises “one to two months of regular General Fund operating expenditures”.

 

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS, THAT:

 

SECTION 1: The City Council of the City of Jonesboro, Arkansas resolves to maintain Reserves of 15% of the budgeted expenditures in the Unappropriated Fund Balance of the General Fund.

 

PASSED and ADOPTED the 17th day of November, 2009.