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RESOLUTION R-1819-76: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, APPROPRIATING $357,029 FROM THE GENERAL FUND BALANCE TO THE NET REVENUE STABILIZATION FUND (RAINY DAY FUND) IN ORDER TO MAINTAIN THE PROJECTED TARGET FUND BALANCE AS RECOMMENDED BY THE CITY COUNCIL FINANCE COMMITTEE.
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BACKGROUND: Pursuant to the amended 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 one percent (1%) of budgeted expenditures; plus
An additional Fund Balance in a separate Net Revenue Stabilization ("Rainy Day") Fund of four percent (4%) 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 5% of General Fund expenditures (bringing targeted reserves to a total of 9% of General Fund expenses).
DISCUSSION: Upon the adoption of the fiscal year 2018-2019 budget, the City had met its minimum reserve requirements. As required by the City Code, the Council, at its Finance Committee mid-year budget review meeting on January 17, 2019 received information on the actual, audited financial status of the Net Revenue Stabilization Fund, as of June 30, 2018. This updated information indicated that the Rainy Day Fund exceeded its projected Minimum required fund balance as of June 30, 2019, but was short of its projected Target fund balance. The Committee, attended by a quorum of the City Council, recommended that a...
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