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HomeMy WebLinkAbout07/15/2015 7H � AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5280 amending Study Session Date: July 8, 2015 Chapter 3.36 of the Bremerton Municipal COUNCIL MEETING Date: July 15, 2015 Code entitled "Contingency Reserve Fund" Department: Financial Services Presenter: Cathy Johnson Phone: (360)473-5296 SUMMARY: Chapter 3.36 of the Bremerton Municipal code establishes a Contingency Reserve Fund to protect the City's General Fund in the event of unforeseen and unfunded emergency requirements. The required minimum level expressed in the chapter of$1,000,000 was established in 2007. The Revised Code of Washington (RCW) 35.33.145 restricts the accumulation of monies in contingency funds to $0.375 per$1,000 of total assessed valuation (A�. Currently the City's AV is 8% less than the 2007 AV resulting in an allowable reserve amount of$882,954, less than amount currently authorized in the BMC. It is the recommendation of the Director of Financial Services that the code be changed to reflect the formula contained in RCW to allow the reserve amount to increase or decrease with changes in the City's assessed valuation. ATTACHMENTS: Ordinance No. 5280 FISCAL IMPACTS (Include Budgeted Amount): The 2015 budget anticipates a fund balance of $730,240 at 12/31/15, less than the required amount. Since the fund balance was drawn down in 2011 funds have been budgeted and transferred annually from the General Fund to rebuild the balance to the authorized amount. STUDY SESSION AGENDA: � No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. 5280 amending Chapter 3.36 of the Bremerton Municipal Code to set the established contingency reserve amount equal to thirty-seven and one-half cents per thousand dollars of assessed valuation of property within the City of Bremerton and make other related amendments. COUNCIL ACTION: [�Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 �