HomeMy WebLinkAbout035-98RESOLUTION NO. 35-98
DEFINING THE PURPOSE AND USES OF THE
GENERAL FUND OPERATING RESERVE
WHEREAS, it is prudent fiscal management for public agencies to reserve funds which can be
used in the event of financial emergencies; and
WHEREAS, the Town of Danville has a policy of maintaining a General Fund operating reserve
of 20% of the fiscal year operating budget to be used in such emergencies; and
WHEREAS, the Town Council retains control over the circumstances under which the operating
reserve can be used; now, therefore, be it
RESOLVED that the Danville Town Council formalize its policy of maintaining an operating
reserve of 20% of the fiscal year operating budget against the General Fund fund balance; and
be it further
RESOLVED that the 20% operating reserve be used only in the event of a financial emergency,
as determined by the Town Council; and be it further
RESOLVED that the Town Council decide, by passage of a Town Council resolution during a
financial emergency, to draw upon the operating reserve; and be it further
RESOLVED that the operating reserve be reimbursed during the same fiscal year, if possible,
and if this is not possible, that the Town Council adopt a plan before the close of the fiscal year
to reimburse the operating reserve as soon as possible.
APPROVED, by the Danville Town Council at a regular meeting on February 17, 1998, by the
following vote:
AYES: Waldo,
NOES: None
ABSTAINED: None
ABSENT: None
Arnerich, Doyle,
Greenberg, Shimansky
MAYOR
APPROVED AS TO FORM:
CITY ATTORNEY
ATTEST:
CITY CLERK