Chapter 1.78
REVENUE STABILIZATION FUND

Sections:

1.78.010    Fund created – Source.

1.78.020    Use of fund.

1.78.010 Fund created – Source.

There is created and established within the budget of the city of Hoquiam a fund to be known and designated as the “revenue stabilization fund,” fund no. 003, into which may be transferred general fund revenues as available to maintain a target level reserve of at least eight percent of the total general fund budgeted revenue. This is in addition to the city’s goal of maintenance of forty-five days’ operating cash within the general fund itself. Interest income derived from fund no. 003 investments shall be deposited into the general fund. (Ord. 07‑05 § 1, 2007).

1.78.020 Use of fund.

(1) Expenditures from this fund shall be used only for the following purposes:

(a) To address temporary revenue shortfalls and payment of approved expenditures due to cash flow shortages; and

(b) To sustain city services in the event of a catastrophic event such as a natural/manmade disaster (e.g., earthquake, windstorm, flood, terrorist attack, etc.) or a major downturn in the economy.

(2) All expenditures from this fund shall require prior city council approval, unless previously specifically authorized by the city council for expenditure in the annual budget. (Ord. 07-05 § 1, 2007).