RES 2008-01 EMERGENCY RAINY DAY RESERVE AND CONTINGENCY RESERVERESOLUTION NO 2008-01
A RESOLUTION of the City of Bainbridge Island, Washington,
establishing an Emergency Rainy Day Reserve and a Contingency
Reserve within the General Fund of the City and amending Resolutions
2003-49 and 2004-04
WHEREAS, the City of Bainbridge Island (the "City") established cash reserve targets in 1998
by Resolution 98-36 and subsequently restructured them by Resolution 2003-49 and 2004-4, and
WHEREAS, the City seeks to develop financial policies that are fiscally prudent and that
incorporate principals of budget sustainability, and
WHEREAS, the City seeks to maintain the highest possible credit rating for all categories of
General Obligation debt that can be achieved without comprising the delivery of basic City
services, and
WHEREAS, the City Council has determined that to achieve these goals it is necessary and
appropriate to establish the an Emergency Rainy Day Reserve and a Contingency Reserve to pay
for unanticipated expenditures, now therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND DOES RESOLVE AS
FOLLOWS
Section 1 An Emergency Rainy Day Reserve (formerly called the Emergency Reserve) is
established within the General Fund of the City to pay for unexpected emergencies that can not
reasonably be accommodated by current budget appropriations or by the Contingency Reserve
Such uses are limited to
• Mayor financial loss caused by fire, flood, explosion, storm, earthquake, terrorism
or similar occurrence that could not be anticipated
• For the immediate preservation of order or public health, or for the restoration of
public property which has been destroyed
• For the payment of claims for personal injuries or property damage that are not
covered by insurance
• To meet mandatory expenditures required by law enacted since the previous
budget was adopted
Page 1
A This Emergency Rainy Day Reserve is subject to appropriation only by a vote of
not less than five (5) members of the City Council or the unanimous vote of a legal
quorum
B It shall be the policy of the City that the Emergency Reserve in each annual
budget shall, to the extent that is fiscally prudent, be an amount equal to not less than five
percent (5%) of the unrestricted General Fund revenues
C Each year the unspent portion of the Contingency Reserve shall be added to the
prior year balance of the Emergency Rainy Day Reserve with the intent to accumulate up
to the legal limit as established by RCW 35 33 145 and all related references
Section 2 In addition to the Emergency Reserve, there shall be established a Contingency
Reserve within the General Fund of the City This Reserve shall be utilized to meet unexpected
needs that were not provided for in the annual budget and for minor shortfalls in budgeted
appropriations
A Fo the extent that it is fiscally prudent, an appropriation to the Contingency
Reserve in an amount not less than five percent (5%) or more than eight percent (8%) of
the unrestricted General Fund revenues will be included in each annual budget
B Appropriations from the Contingency Reserve shall only be by a vote of not less
than five Council Members or by a unanimous vote of a legal quorum
C Appropriations from the Contingency Fund Reserve shall not be made for funding
requests that can reasonably be deferred for consideration within the annual budget for
the following year Appropriations from the Contingency Fund Reserve shall not be
made for funding requests that were considered but not funded in the current budget
unless conditions or circumstances have substantially changed from the time of the
original budget request
D No single appropriation from the Contingency Reserve shall exceed 20% of the
original Contingency Reserve balance at the beginning of the calendar year
n
Page 2
1
E Each year the unspent portion of the Contingency Reserve shall be added to the
prior year balance of the Emergency Rainy Day Reserve with the intent to accumulate
up to the legal limit as established by RCW 35 33 145 and all related references
PASSED by the City Council this 9"' day of January, 2008
APPROVED by the Mayor this 10`x' day of January, 2008
ATTEST/AUTHENTICATE
By —6o UDO(7� VA564�
Rosalind D Lassoff, CMC
City Clerk
FILED WITH THE CITY CLERK
PASSED BY THE CITY COUNCIL
RESOLUTION NO
I�
« z1
i-VL_:IL.LL.�Darlene Kordo�iowy. May
December 6, 2007
January 9, 2008
2008-01
(formerly 2007-31)
Page 3