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<br />ATTACHMENT B <br /> <br />CONTINGENCY FUND APPROVAL CRITERIA <br />City Council Process Session Follow-up <br /> <br />Issue: Should guidelines for council expenditure of General Fund Contingency be more <br />restrictive? <br /> <br />Existing practice <br />The FY11 budget includes $100,000 in General Fund Contingency. Contingency is an account <br />established to help meet unanticipated funding requirements during a fiscal year. A council <br />resolution or ordinance is required to move funds out of the contingency account into another <br />account for expenditure. According to City of Eugene Financial Policies and Procedures, the <br />council must approve requests for contingency before the resolution or ordinance. Criteria for <br />these unanticipated situations include: <br /> a) An emergency situation that affects the health or safety of City employees or the public. <br /> b) A situation which, if not addressed, will result in a loss of City property or place the <br /> City in a position of liability. <br /> c) A situation which arises as a result of specific City Council/City Manager directives. <br /> d) A situation which will result in the City being able to provide services in a more <br /> efficient and effective manner. (This criterion must be associated with one or more of <br /> the three above-cited criteria in order to be used as a justification for requesting funds <br /> from a Contingency account.) <br /> <br />Proposed criteria <br />The FY11 budget includes $100,000 in General Fund Contingency. Contingency is an account <br />established to help meet unanticipated funding requirements during a fiscal year. A council <br />resolution or ordinance is required to move funds out of the contingency account into another <br />account for expenditure. According to City of Eugene Financial Policies and Procedures, the <br />council must approve requests for contingency before the resolution or ordinance. Criteria for <br />these unanticipated situations include: <br /> <br />a.An emergency situation that affects the health or safety of City employees or the public, <br />and for which targeted funding is immediately necessary to preserve service delivery or <br />prevent significant, negative impacts in the community. (Example: H1N1) <br /> <br />b.A situation which, if not addressed, will result in a loss of City property or place the <br />City in a position of liability. (Example: replacement of stolen copper wire for bike <br />path lighting system) <br /> <br />c.A situation which arises as a result of specific City Council/City Manager directives <br />for which financial needs could not have been identified during the budget process <br />and funding is immediately necessary to assure conformance with legal requirements <br />or to fulfill established obligations. (Example: outdoor smoking ordinance – help <br />defray required permit costs) <br /> <br />d.A situation which will result in the City being able to provide services in a more <br />efficient and effective manner. (This criterion must be associated with one or more of <br />the three above-cited criteria in order to be used as a justification for requesting funds <br />from a Contingency account.) <br /> <br /> <br />