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Discussion Only: Cash Flow Policy and Related Budget Adjustment for General Fund - General Account Fund #001 (Corporate Fund)
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WHEREAS, Kane County Financial Policies, Section 17 - Reserve Policies, “The County shall set reserves at a minimum of 3 months operating expenditures in the Corporate Fund”; and
WHEREAS, during the fiscal year, specifically in May and June, the fund balance of the General Fund - General Account #001 reaches a low fund balance since property tax revenue is generally deposited in two large amounts during the months of May and September each fiscal year and property tax revenue is one of the primary sources of revenue for the General Fund - General Account; and
WHEREAS, if the General Fund - General Account does not have sufficient fund balance in May and June to fund expenses the Finance Department is directed to transfer funds from the General Fund - Special Reserve Account #112 into the General Fund - General Account #001 to cover expenses until the property tax revenue is received at which point the funds must be returned to the General Fund - Special Reserve Account; and
WHEREAS, the County Board should be kept notified of the reserve balances in the General Fund - General Account and the General Fund - Special Reserve Account, these two fund balance amounts will be required to be reported in the monthly report provided to the County Finance and Budget Committee by the Executive Director of Finance.
NOW, THEREFORE, BE IT RESOLVED by the Kane County Board that the Executive Director of Finance is directed to transfer funds from the General Fund - Special Reserve Account (Fund #112) to the General Fund - General Account (Fund #001) if the General Fund - General Account does not have sufficient fund balance to pay expenses and to then immediately return these same funds to the General Fund - Special Reserve Account when sufficient funds have been deposited into the General Fund - General Account, promptly notifying the County Board on the occasion of each of these transactions.
Passed by the Kane County Board on May 12, 2026.
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John A. Cunningham, MBA, JD, JD Corinne M. Pierog MA, MBA
Clerk, County Board Chairman, County Board
Kane County, Illinois Kane County, Illinois
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