There is hereby established a separate fund (Emergency Reserve) in the City which
shall be established as part of the budget beginning with the 2005—2006 budget and
which shall annually contain the emergency reserve for the City. The initial goal
for the Emergency Reserve shall be up to $40,000,000. The Emergency Reserve shall
not be used except as initiated by the Mayor through written communication to City
Council, explaining the emergency, and subsequent approval by two-thirds vote of all
City Council members.
The Emergency Reserve can be used to address unanticipated non-reimbursed expenditures
arising out of a hurricane, tornado, other major weather related events, and/or other
massive infrastructure failures or other disasters, whether man made or caused by
nature. Under normal circumstances, the City would first elect to utilize the Operating
Reserve before considering use of its Emergency Reserve. In the event the City is
entitled to reimbursement of Emergency Reserve expenditures, the City shall take all
such actions necessary to secure such reimbursements, and all such reimbursements
are hereby appropriated to the Emergency Reserve.
All interest earned in Emergency Reserve in Fiscal Year 2008-2009 and after shall
accrue and remain within the Emergency Reserve. The balance in the Emergency Reserve
shall be reported to the City Council Finance Committee at least quarterly. The goal
for the City Emergency Reserve Fund is to equal approximately seven percent (25.5
days average cash flow) of the total General Fund/General Services District budgeted
expenditures. Annually, during the budget process, the Mayor, if the goals are not
met shall recommend added contributions to the Emergency Reserve.
