RES 98-36 ESTABLISHMENT OF A CASH RESERVE POLICYRESOLUTION No. 98-36
A RESOLUTION OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON ESTABLISHING A CASH RESERVE POLICY.
WHEREAS, policies setting cash reserve limits have been included in the 1997 and 1998
Budgets but have never been separately voted on by the City Council, and
WHEREAS, the City Council now wishes to explicitly approve policies setting minimum
levels of cash reserves, and
WHEREAS, the balances provided by these policies believed sufficient that the City need
not resort to short-term borrowing in order to pay all expenditures; now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND,
DOES RESOLVE AS FOLLOWS:
WASHINGTON,
During the development of the annual budget, the City shall utilize a policy of maintaining:
(1) unrestricted cash reserves equal to one month' s operating expenditures for its
tax-supported funds. The reserves shall be measured at December 3 1 of each
year. The term "cash" shall include those investments readily convertible to
cash; and
(2) working capital equal to three months of operating expenditures for its utility
funds
PASSED by the City Council this
APPROVED by the Mayor this __
6 th day of August, 1998.
7 th day of August, 1998.
DW~ght Sutton,' Mayor
ATTEST/AUTHENTICATE:
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
RESOLUTION No. 98-36
July 29, 1998
August 6 tin,
1998.