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.