FY2020-10 Ordinances Title 3 Rev. Fin. Chapter 3.05 Fiscal Policy Section 3.05.080 Reserve Policies1
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Introduced by: Borough Manager
Drafted by: Finance Director
Introduced on: 10/03/2019
Amended on: 10/17/2019
Public Hearing Date: 10/17/2019
Adopted on: 10/17/2019
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2020-10
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING
KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE
CHAPTER 3.05 FISCAL POLICY SECTION 3.05.080 RESERVE POLICIES
WHEREAS, The Assembly finds that it is in the Borough's best interests to set minimum fund
balance reserve amounts by ordinance; and
WHEREAS, The Assembly finds that minimum fund balances should be set with the objective
there will be sufficient uncommitted resources to cover cash flow needs at all times, regardless of
seasonal fluctuations in expenditures or reserves and to provide adequate reserves for
emergency needs; and
WHEREAS, The Assembly finds that when fund balances are reduced below minimum reserve
targets based upon Assembly action, an orderly process should be followed to restore the
minimum fund balances.
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: This ordinance is of permanent nature and shall become a part of the Kodiak Island
Borough Code of Ordinances.
Section 2: That section 3.05.080 of the Kodiak Island Borough Code of Ordinances, entitled
Reserve Policies, is amended to read as follows:
3.05.080 Reserve policies.
A. Fund Balance Policy.
Fund balance is the uncommitted resources of a fund. Borough policy is to
construct the various fund balance budgets in such a way that there will be
sufficient uncommitted resources to cover cash flow needs at all times, regardless
of seasonal fluctuations in expenditures or reserves and to provide adequate
reserves for emergency needs.
Kodiak Island Borough, Alaska
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Ordinance No. FY2020-10
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The borough will maintain a fund balance designated for fiscal cash liquidity purposes (i.e.,
fiscal reserve) that will provide sufficient cash flow to minimize the potential of short-term
tax anticipation borrowing. Specific fund balance reserves and the purposes of these
reserves are as follows:
1. General Fund Operating Reserves: The borough will maintain a general fund
offing reserve to provide for adequate cash flow, budget contingencies, and
insurance reserves. The cash flow reserve within the general fund is an amount
equal to six months of budgeted operating expenditures and one-half the
current liability insurance deductible amount.
2. Education Support Fund: The Borough will maintain a cash flow reserve to
provide for unexpected revenue shortfalls. The cash flow reserve within the
education support fund is equal to $75,000.00.
3. Debt Service Fund: The Borough will maintain a cash flow reserve to provide for
unexpected revenue shortfalls. The cash flow reserve within the debt service
fund is equal to $275,000.00.
4. Solid Waste Disposal & Collection Fund: The Borough will maintain an operating
reserve to provide for adequate cash flow, budget contingencies and loan
Payment reserves. The cash flow reserve within the solid waste disposal and
collection fund is an amount equal to six months of budgeted operating
expenditures and the loan payment reserve is the following years total loan
payments.
B. Use and Restoration of Reserves.
a. All expenditures drawn from reserve accounts require prior assembly approval
Kodiak Island Borough, Alaska
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Ordinance No. FY2020-10
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b. If reserves and or fund balances fall below the required level set in subsection
(A) of this section, the assembly shall include within its annual budget a plan to
restore reserves and or fund balance to the required levels.
Effective Date: This ordinance takes effect upon adoption.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTEENTH DAY OF OCTOBER, 2019.
KODIAK ISLAND BOROUGH ATTEST:
Daniel A. Rohrer, Mayor TaTa W linsky Clerk
VOTES:
Ayes: Schroeder, Skinner, Smiley, Turner, Arndt, and Kavanaugh
Noes:
Absent: Symmons
Kodiak Island Borough, Alaska
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Ordinance No. FY2020-10
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