§ 106.106. Balanced Budget and Budget Stabilization Reserve.

(a)

Balanced Budget.

(1)

The annual General Fund budget for recurring expenditures of the City of Jacksonville shall be balanced from current year revenues. Current year revenue for the purposes of this section shall not include unassigned general fund general service district fund balance.

(2)

The annual General Fund budget shall contain, at a minimum:

(i)

Operating costs sufficient to maintain operations for the fiscal year;

(ii)

Debt service;

(iii)

Transfers to independent agencies

(iv)

Funding for renewal, replacement and improvement of capital assets;

(v)

Funding of reserves; and

(vi)

Funding of contingencies.

(b)

The following financial planning targets (identified as percentages of the operating budget) are established to assist the City in returning to traditional cash based funding by fiscal year 2012-2013:

(i)

General Fund.

Operating Reserve .....	5—7%
Emergency Reserve .....	5—7%
Budgeted Contingency .....	1%
Pay-As-You-Go-Capital .....	The value of 1 mill of property taxes

 

(ii)

Fleet Management.

Operating Reserve .....	5—7%
Operating Contingency .....	5%
Vehicle Replacement .....	Eliminate Borrowing
Vehicle Replacement Reserve .....	100% of the Average 10-Year Replacement Forecast

 

(iii)

Risk Management.

Operating Reserve .....	5—7% of Year-End Liability
Liability .....	Actuarial estimate of outstanding liability (using the medium nondiscounted estimate)

 

Commencing in budget year 2007-2008 the budget development process should specifically address progress on one or more of the above targets; and at least one-half of any end-of-year excess of revenues over expenditures shall be used to accelerate Operating, Emergency, or Replacement Reserve development and replenishment.

(c)

For purposes of this section, the following terms shall be defined as follows:

(i)

Operating Reserves, measured as a percentage of the operating budget, are available liquid reserves which can be drawn upon if necessary, but are intended to be infrequently and sparingly used.

(ii)

Budgeted Contingency, measured as a percentage of the operating budget, are funds available to address unanticipated budgetary events and/or situations arising during the term of the budget.

(iii)

Pay-as-you-go-Capital, is a portion of the City capital improvements budget funded from current revenues, thereby reducing the need for borrowing and the related debt service burden on future budgets.

(d)

To the extent that one time reserves remain or that General Fund/General Services District revenues exceed expenditures these amounts in the subsequent fiscal year shall be placed into an Operating Reserve and allowed to accumulate until the reserve is equal to the target set forth in subsection (b) above. The reserve shall be available to fund unanticipated revenue shortfalls and/or to fund unanticipated increases in General Fund General Services District expenditures/transfers, and/or to reduce debt in the City's short term loan fund and/or to provide funds for the Vehicle Replacement Fund.

(e)

At least bi-annually, or as may be deemed necessary by the Director of Finance and Administration, the Director of Finance and Administration, working with the Council Auditor, may propose changes to the fund categories, as approved by the Mayor and City Council Finance Committee by report pursuant to Council Rules 2.214. Initially, the types of fund categories shall be as follows:

(i)

"Restricted Use Funds," which means those funds that limit (e.g., by statute, grant, ordinance, etc.) use of either the revenue or fund balance;

(ii)

"Business Unit Funds" or "Internal Service Funds," which means those funds designated by the Mayor and approved by the City Council Finance Committee by report pursuant to Council Rules 2.214 self-sustaining funds with established reserve targets related thereto;

(iii)

"Special Situation Funds," which means those funds designated by the Mayor and City Council Finance Committee by report pursuant to Council Rules 2.214, for special or unique situations, occurrences or events wherein the year-end fund balance is targeted for a specific subsequent use; and

(iv)

"General Fund Supported Funds or Sub-Funds," which mean those funds that rely substantially on General Fund support to sustain operation.

(f)

For Restricted Use Funds, any projected or actual year-end fund balance shall be deemed restricted to the purpose for which such related fund was established and is continuing to operate.

(g)

For Business Unit Funds and Internal Services Funds, until the established reserve targets related thereto and funding strategies established therefore have been met, any reserve available at year-end shall be retained within such related fund to allow progress toward the target set forth. Once the targets have been met and are being maintained, then any excess reserves, as of year-end, may be recaptured, if necessary, to build and/or replenish the targeted General Fund reserves.

(h)

For Special Situation Funds and/or reserves therein, as long as the contractually committed forward arrangement exists, the related reserves will be held within the Special Situation Funds and/or fund reserves, as contemplated therein.

(i)

For General Fund Supported Operating Funds or Sub-Funds, annually as part of the year-end audit closing, any year-end reserve created by the operations of such related fund or sub-funds shall be identified and transferred to the General Fund as a reduction of the General Fund's Operating Transfer subsidy (a "Recapture") with the intent of increasing the Operating Reserves and thereafter the Emergency Reserve. To the extent that the Recapture exceeds the annual subsidy, then the remaining year-end Recapture shall be treated as an Interfund Transfer to the General Fund.

(j)

To the extent excess reserves become available (and are not otherwise restricted) in other fund categories (as defined in subsection (e) above, then a similar Recapture shall be initiated related thereto.

(k)

The Director of Finance and Administration shall provide the Council Auditor with a draft of the proposed Recapture journal entry, and the Council Auditor shall have five business days from the date thereof to review and/or comment thereon, prior to any action in respect thereto.

(l)

Within thirty days of a Recapture, the Director of Finance and Administration shall report to the Mayor and City Council on the following items:

(i)

The Recapture exercised by fund/sub-fund; and

(ii)

The status of the various targeted reserve positions.

(m)

An exception to subsections (a) and (d) through (l) shall require approval by two-thirds vote of all City Council members.

(n)

No later than May 31 annually, the Director of the Finance Department shall provide to the Council Auditor a proposed budget transfer to address any financial differences between budget and actuals of all-years funds that arose during the prior fiscal year. Such budget transfer shall be reviewed by the Council Auditor. The Council Auditor shall have 15 business days to review, and/or comment thereon. Legislation shall be immediately introduced after concurrence between the Finance Department and the Council Auditor to align budget with actuals. Excluded from this requirement are any all year funds that are included in the annual budget process, funds that contain reimbursement grants, or multi-year grants and funds that are self-appropriating.

(Ord. 2005-807-E, § 10.11.A; Ord. 2005-1496-E, § 1; Ord. 2006-788-E, § 10.3; Ord. 2015-428-E , § 1; Ord. 2016-140-E , § 16)

Editor's note

Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.