HomeMy WebLinkAboutCC-02-03-03-02 Rainy Day PolicySponsor: Councilor Koven
RESOLUTION NO. CC-02-03-03-02.
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF cARMEL, INDIANA, SETTING
FORTH A FISCAL POLICY OF THE cOUNCIL
WHEREAS, the Common Council of the City of Carmel, Indiana ("Council") as the
fiscal body of the City of Carmel ("City"), is charged with the responsibility to anticipate,
provide for and maintain the fiscal health and viability of the City; and,
WHEREAS, the Council is desirous of having a City which is both fiscally vibrant and
financially secure; and,
WHEREAS, it is incumbent upon this Council to take any and all necessary steps, as
provided by Indiana law, to ensure this fiscal security of the City for its citizens; and,
WHEREAS, the Council established a Rainy Day Fund ("Fund") by Ordinance No. D-
1535-01 in 2001; and,
WHEREAS, the Council is desirous of having a Fund with a balance that is within the
guidelines set forth by the National League of Cities Leadership Training Institute in December
2002; and,
WHEREAS, the median reserve fund balance for a City with a population from 25,000 to
50,000 is 14% of the overall City budget;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Cannel, Indiana, that:
Section 1: The Council recognizes that both the federal and state governments are placing
more demands and mandates on local government without the benefit of
accompanying or appropriate funding, which requires that local government has
to do more and more with less and less.
Section 2: The Council directs that the Rainy Day Fund ("Fund") shall be designated as a
reserve fund for unforeseen financial emergencies which may arise, such as, but
not limited to: natural disasters, homeland security issues, unfunded mandates,
lawsuits and cash flow fluctuations due to economic revenue volatility.
Section 3: The Council recognizes that a significant Fund balance is an important factor for
receiving a high bond rating for the City when borrowing may be necessary.
Section 4: The Council will reserve and set aside as much money each year as it deems
fiscally prudent and sound, in accordance with City Ordinance No. D-1535-01
and any subsequent amendments, as a reserve for the City's financial health until
the balance in the Fund reaches at least $5,000,000.
755644
Sponsor: Councilor Koven
Section 5: This Resolution shall be in full force and effect from the date of passage, and its
publication, as provided by law.
PASSED by the Common Council of the City of Carmel, Indiana, this,~°'day of
"[[._~L"f(l_taqt_,lJ..A ,2003, byavoteof e-/ ayesand~_nayes.
COMMON COUNCIL OF TIlE CITY OF CARMEL .,~
eres~fn~ Officer / Ke~i~
~n~,de;, President Pif~T-empore J~I~Ko{'~%
Robepe-gaktreali - ' - $I.L. lRundle I, ~
/A(onald E. Carter Wayne Wilson "' ~,'
Diana L. Cordray, IAMC, ~k-Tasurer
Presented by me tp ~ Mayor of the City of Carmel, Indiana this /faay of
I ,~vuu~/' ,2003, at._~ l-5~.M.
J /
Di~ma L. Cordray, IAMC, Cler~-Tre, asurer
~pproved by me, Mayor of the City of Carmel, Indiana, thisJ'~ d~ty of ~-. ,2~003
at q ts .a.M.
M~7or James Brainard
ATTEST<~ ~,
''' ~) Ii ,~ .
Diana L. Cordray, IAMC,'~lerk-Tre~t~trer
Prepared by: Sue A. Beesley
Binghm McHale LLP
2700 Market Tower
10 W. Mmket Street
~dianapolis, ~ 46204
755644