§ 102-290. General fund and special services district fund reserve balances.

(a)

There is hereby established fund balance reserves in the general fund and special services district fund as set forth in this section.

(b)

The general fund balance reserve shall be established as follows:

(1)

Commencing with the 1995 fiscal year budget, a reserve of 5.4 percent of general fund budgeted expenditures shall initially be established, the initial reserve. This percentage represents approximately $18,300,000.00 in 1995.

(2)

Each subsequent year through 1998 an additional one percent of budgeted expenditures shall be reserved to the extent such amount is available from revenues exceeding budgeted amounts and/or expenditures which were less than budgeted amounts in the immediately preceding year.

(3)

The "minimum reserve" for the general fund is established at no less than 16.66 percent of budgeted expenditures, representing on average two months of expenditures and allowing Fulton County sufficient resources to operate until annual tax anticipation note proceeds can be received.

(4)

A goal reserve of 20 percent of budgeted expenditures for the general fund is established. As part of the budgeting process each year until the goal reserve is established, the budget commission and Board of Commissioners of Fulton County shall consider increasing the fund balance reserve by one percent to the extent such amount is available from revenues exceeding budgeted amounts and/or expenditures which were less than budgeted amounts in the immediately preceding year.

(5)

The fund balance reserve may be reduced only in the following situations:

a.

If budgeted revenues for any fiscal year are not collected and actual expenditures cause an operating deficit for that year;

b.

If a natural disaster occurs within the boundaries of Fulton County, and the board of commissioners approves the use of the reserve to pay for the costs of such disaster; or

c.

If the board of Commissioners of Fulton County determines that an unforeseeable emergency situation exists and approves the use of the fund balance reserve to pay for the emergency situation.

(c)

The special services district fund fund balance reserve shall be established as follows:

(1)

Commencing with the 1995 fiscal year budget, a reserve of 10.6 percent of special service district fund budgeted expenditures shall initially be established, the initial reserve. This percentage represents approximately $6,700,000.00 in 1995.

(2)

Each subsequent year through 1998 an additional one percent of budgeted expenditures shall be reserved to the extent such amount is available from revenues exceeding budgeted amounts and/or expenditures which were less than budgeted amounts in the immediately preceding year.

(3)

The minimum reserve for the special services district is established at 16.67 percent of budgeted expenditures, representing on average two months of expenditures. Unlike the general fund, the special services district cannot borrow operating monies through a tax anticipation note. A fund balance reserve at 16.67 percent of budgeted expenditures will allow the fund to have sufficient cash flow resources to sustain operations until tax revenues are received.

(4)

A goal reserve of 20 percent of budgeted expenditures for the special services district fund is established. As part of the budgeting process each year until the goal reserve is established, the budget commission and Board of Commissioners of Fulton County shall consider increasing the fund balance reserve by one percent to the extent such amount is available from revenues exceeding budgeted amounts and/or expenditures which were less than budgeted amounts in the immediately preceding year.

(5)

The fund balance reserve may be reduced only in the following situations:

a.

If budgeted revenues for any fiscal year are not collected and actual expenditures cause an operating deficit for that year;

b.

If a natural disaster occurs within the boundaries of the Special Services District of Fulton County, and the board of commissioners approves the use of the reserve to pay for the costs of such disaster; or

c.

If the board of Commissioners of Fulton County determines that an unforeseeable emergency situation exists and approves the use of the fund balance reserve to pay for the emergency situation.

(95-0105, §§ I—III, 2-15-95; 15-0078, 1-21-15)