Title
An Ordinance repealing Ordinance No. 78-2006 pertaining to the Economic Contingency Designation Policy and replacing it with a Contingency Designation Fund and Policy, which includes a funding goal of ten percent (10%) of General Fund revenues and procedures related to depositing and withdrawing of monies into and from the fund. [Council Office, Maynard]
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WHEREAS, the Lexington-Fayette Urban County Government previously adopted an Economic Contingency Designation Policy which was most recently amended in Lexington-Fayette Urban County Government Ordinance No. 78-2006; and
WHEREAS the Urban County Council desires to modify and replace that policy with a new Contingency Designation Fund and Policy.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT:
Section 1 - That Lexington-Fayette Urban County Government Ordinance No.78-2006 be and hereby is repealed and replaced in its entirety with this ordinance.
Section 2 - That the following policy relating to the Lexington-Fayette Urban County Government General Services District Fund, be and hereby is approved and adopted:
1. That as of the effective date of this ordinance, the Existing Economic Contingency Designation shall be renamed as the Contingency Designation Fund (the “Contingency Fund”) in order to provide the Lexington-Fayette Urban County Government with sufficient working capital and an ability to address emergencies without borrowing.
2. The Contingency Fund shall maintain a funding goal of ten percent (10%) of the previous year’s total General Fund Revenues.
3. Interest earned on monies in the Contingency Fund will accrue to the fund.
4. Other reasonable funding possibilities shall be pursued prior to the withdrawal of any monies from the Contingency Fund.
5. A monthly deposit in the amount of $50,000.00 will be required each fiscal year unless the ten percent (10%) funding goal has been met. In the event funds are withdrawn for revenue stabilization proposes, deposits for that fiscal year may be suspended.
6. Each year, the Department of Finance will report to the Budget, Finance, and Economic Development Committee the dollar amount that could be deposited to the Contingency Fund to maintain ten percent (10%) of the previous year’s General Service District Fund revenues.
7. Monies in the Contingency Fund may be used for the following:
a. Unanticipated or unforeseen extraordinary needs of an emergency nature; for example, costs related to a natural disaster or calamity or other emergency as defined in state or local law, or an unexpected significant liability occurs;
b. Revenue stabilization to balance the budget in the event of an unanticipated revenue shortfall; or
c. Unanticipated situations of an unusual nature involving non-recurring expenditure(s).
8. The following process shall be used to approve the withdrawal of any monies from the Contingency Fund regardless of whether the request for withdrawal is made by the administration or the Urban County Council:
a. All requests for the withdrawal of monies shall be submitted in writing and supported by documentation to the Chief Administrative Officer, which shall include at a minimum, the proposed use of the funds and all associated costs;
b. Such requests shall be submitted by the Chief Administrative Officer, with a recommendation, to the Urban County Council for review at least two (2) weeks prior to the date of the first work session at which the request is to be presented;
c. Any withdrawal of monies must be approved by at least two-thirds (i.e., 10) of the members of the Urban County Council; and
d. The actual expenditure of funds may also require the approval of a budget amendment dependent upon the circumstances.
9. Notwithstanding paragraph 8, above, in the event that a State of Emergency has been declared, the Mayor may approve a withdrawal of monies from the fund for uses related to the emergency.
Section 3 - That this Ordinance shall become effective on the date of its passage.
PASSED URBAN COUNTY COUNCIL:
______________________________
MAYOR
ATTEST:
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CLERK OF URBAN COUNTY COUNCIL