HomeMy WebLinkAboutResolution No. 4531
RESOLUTION NO.
Y~31
A RESOLUTION APPROVING A TARGET LEVEL FOR
GENERAL FUND UNAPPROPRIATED ENDING FUND
BALANCE (UEFB).
The City Council of the City of Eugene finds that:
A. In order to meet the City's financial management goals and policies the City
carries a reserve in the General Fund known as the Unappropriated Ending Fund Balance
(UEFB). The primary purpose of the UEFB is to ensure positive cash flow during the first
four to five months of the City's fiscal year prior to its receipt of General Fund property tax
revenues. Maintaining the UEFB also generates interest earnings that are available to
fund services; provides a financial cushion to deal with an unanticipated financial crisis or
economic fluctuation; and provides a positive influence on the City's credit ratings.
B. Passage of Ballot Measure 47 in November 1996, and then Ballot Measure
50 in May 1997, has created a financial crisis because it is anticipated that General Fund
revenues will be significantly less than previously projected. In order to make a thoughtful,
deliberative transition to the post-Ballot Measure 50 environment, the City Manager's
Proposed FY98 Budget included a drawdown of UEFB. On June 23, 1997, the City
Council approved an FY98 Budget that accepted the City Manager's recommendation on
use of UEFB.
C. Because of the changes brought about by Ballot Measure 50 and the
possibility that its impact may cause increased General Fund revenue volatility, a target
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level should be established for the UEFB and a plan developed to achieve funding of the
UEFB at that target level over the next three to five years.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a
Municipal Corporation of the State of Oregon, as follows:
Section 1. Based on the above findings, which are hereby adopted, the following
Financial Management Policy is hereby approved:
In order to maintain a prudent level of reserves in the General Fund, the
target amount of Unappropriated Ending Fund Balance (UEFB) to be budgeted shall
be at least two months of operating expenses (excluding reserves and contingency).
Section 2. Increases in the UEFB necessary to meet that target amount over the
next three to five years shall come from Marginal Beginning Working Capital, other one-
time dollars, or current year revenues.
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The foregoing Resolution adopted the ~day of July, 1997.
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+7 City Recorder
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