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RESOLUTION R-1415-79: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, APPROPRIATING $326,505 FROM THE GENERAL FUND BALANCE FOR TRANSFER TO THE NET REVENUE STABILIZATION (RAINY DAY) FUND AS RECOMMENDED BY THE FINANCE COMMITTEE.
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BACKGROUND: Pursuant to the Norman City Code, Section 8-103-104 (ET. Seq.), the City Council has established reserve polices to ensure the operations of the City of Norman's General Fund in times of extraordinary expenses or revenue shortfalls; address emergency expenditure requirements; and/or to address major, unforeseen capital facility needs. Under this requirement, the City must have, at minimum, the following reserves:
An Operating General Fund Balance of three percent (3%) of budgeted expenditures; plus
An Emergency Reserve Appropriation in the General Fund of at least two percent (2%) of budgeted expenditures; plus
An additional Fund Balance in a separate Net Revenue Stabilization ("Rainy Day") Fund of three percent (3%) of budgeted expenditures.
Taken together, these minimum reserves are required to be at least eight percent (8%) of General Fund expenses. The policy further sets a targeted "Rainy Day" Fund balance of 4.5% of General Fund expenditures (bringing targeted reserves to a total of 9.5% of General Fund expenses).
DISCUSSION: Upon the adoption of the fiscal year 2014-2015 (FYE 2015) budget, the City had met its minimum reserve requirements. The Council directed, through its budgetary actions, to bring the Rainy Day Fund toward its Targeted balance. The FYE 2015 budget appropriated funds in the Public Safety Sales Tax Fund to be transferred to the Rainy Day Fund to cover the proportion of the General Fund budget made up by the Police and Fire Departments. This appropriated transfer of PSST funds, totaling $292,885, is being implemented through monthly transfers.
At the Finance Committee's mid-year budget review, an analysis was done of the General Fund's ability to ma...
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