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<br />RESOLUTION NO. <br /> <br />Y~31 <br /> <br />A RESOLUTION APPROVING A TARGET LEVEL FOR <br />GENERAL FUND UNAPPROPRIATED ENDING FUND <br />BALANCE (UEFB). <br /> <br />The City Council of the City of Eugene finds that: <br /> <br />A. In order to meet the City's financial management goals and policies the City <br /> <br />carries a reserve in the General Fund known as the Unappropriated Ending Fund Balance <br /> <br />(UEFB). The primary purpose of the UEFB is to ensure positive cash flow during the first <br /> <br />four to five months of the City's fiscal year prior to its receipt of General Fund property tax <br /> <br />revenues. Maintaining the UEFB also generates interest earnings that are available to <br /> <br />fund services; provides a financial cushion to deal with an unanticipated financial crisis or <br /> <br />economic fluctuation; and provides a positive influence on the City's credit ratings. <br /> <br />B. Passage of Ballot Measure 47 in November 1996, and then Ballot Measure <br /> <br />50 in May 1997, has created a financial crisis because it is anticipated that General Fund <br /> <br />revenues will be significantly less than previously projected. In order to make a thoughtful, <br /> <br />deliberative transition to the post-Ballot Measure 50 environment, the City Manager's <br /> <br />Proposed FY98 Budget included a drawdown of UEFB. On June 23, 1997, the City <br /> <br />Council approved an FY98 Budget that accepted the City Manager's recommendation on <br /> <br />use of UEFB. <br /> <br />C. Because of the changes brought about by Ballot Measure 50 and the <br /> <br />possibility that its impact may cause increased General Fund revenue volatility, a target <br /> <br />Resolution - 1 <br />