T6-94 Ordinance No. T6-94
AN ORDINANCE
ESTABLISHING MUNICIPAL RESERVE ACCOUNTS
WHEREAS, the City of Elgin is a home rule unit within the
meaning and by virtue of the provisions of the Constitution of
the State of Illinois, 1970; and
WHEREAS, the City of Elgin, as a home rule unit may
exercise any power and perform any function pertaining to its
government and affairs; and
WHEREAS, it is necessary and desirable to establish and
maintain an account to meet ordinary and necessary
disbursements for salaries and other general and special
corporate purposes and to meet unanticipated contingencies in
order to:
A. Provide adequate cash flow and to prevent
the need for short term borrowing;
B. Provide for temporary funding for
unforeseen/unbudgeted expenditures related to
emergencies or nonrecurring items;
C. Provide for orderly budgetary adjustments
when revenues are lost due Ito the actions of other
governmental bodies;
D. Maintain or improve the city' s overall
general obligation bond rating;
E . Offset significant economic downturns or
revenue shortfalls .
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS:
Section 1 . That there is hereby established the
Municipal Reserve Account which shall be funded to reach a
balance of an amount not less than 16% nor more than 19% of
the preceding year' s expenditures for the general fund. Such
balance shall be attained over a period of five years .
Section 2 . That for the years 1995 through and including
1999 , the reserve fund shall be funded as follows :
Dollars Year End Total
(Millions) (Millions)
Beginning Balance $1 .4 $1 .4
1995 2 .5 3 . 9
1996 1 . 0 4 . 9
1997 1 . 0 5 .9
1998 1 . 0 6 . 9
1999 1 . 0 7 . 9
Section 3 . That expenditures from the reserve account
shall be made solely for necessary disbursements for budgeted
salaries and the general and special corporate purposes for
which funds are not on hand and for unanticipated
contingencies upon a majority vote of the corporate
authorities then holding office.
Section 4 . That this ordinance shall be in full force
and effect from and after its passage.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: October 26, 1994
Passed: October 26, 1994
Omnibus Vote: Yeas 7 Nays 0
Recorded: October 27 , 1994
Published:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk