ORDINANCE #O20-4186 AN ORDINANCE INTRODUCED BY THE FINANCE COMMITTEE AMENDING SEC.

Published March 13, 2020 at 2:01 AM

ORDINANCE #O20-4186

AN ORDINANCE INTRODUCED BY THE FINANCE COMMITTEE AMENDING SEC. 2-241. – UNRESERVED AND DESIGNATED RESERVED FUND BALANCE POLICY
The Common Council of the City of Superior, Wisconsin does ordain as follows:
SECTION 1. Section 2-241 - Unreserved and designated reserved fund balance policy
Repealed and Recreated to read:
(a) The city establishes a policy for excess funds, (excess revenues over expenditures for any fiscal year), as follows:
(1) All excess funds will be directed to the reserves of the general fund to maintain reserve levels of at least 32% of the city’s operating budget for the current fiscal year.
(2) If reserve levels meet or exceed the amounts described in section 1, expenditure of remaining excess funds will be proposed by the Mayor and approved by a majority vote of the common council no later than December 31st of the current fiscal year.
(b) The city hereby establishes a policy to maintain the designated reserves of the general fund at or above 32% of general fund expenditures with a minimum 20% of general fund expenditures. Interest allocated to the fund each year will become part of the reserved fund balance, even when reserves are already at or above 32%.
(1) Drawdown of the reserves to 32% may be done by a majority vote of the common council for any reason. Reserve levels may drop by a maximum of 5% per fiscal year when lowering the reserves to 32%.
(2) Reserves from 32% to 20% are intended to provide a safeguard in the event the general fund goes over budget and consumes a portion of the reserves. An intentional drawdown of funds in this range would also require a majority vote of common council and such funds should be utilized for critical needs or unexpected and unforeseen circumstances.
(3) Drawdown of reserved funds below 20% may only occur in the event of a fiscal emergency to address unanticipated expenditures or declines in revenue due to natural disasters, economic downturns or other unforeseeable future circumstances. A three-fourths vote of the common council shall be necessary to drawdown funds below 20%.
SECTION 3. All ordinance and parts of ordinances in conflict herewith are hereby repealed.
SECTION 4. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by reason of any decision of any court of competent jurisdiction, such decision shall not affect the validity of any other section, subsection, sentence, clause or phrase or portion thereof.
SECTION 5.This ordinance shall take effect and be in force from and after its passage and publication, as provided by law.
Passed and adopted this 3rd day of March, 2020.

S.T. March 13, 2020
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