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Amending The Kane County Financial Policies to Consolidate Four Reserve Funds
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WHEREAS, the Kane County Financial Policies state that, “Reserve Policies - Objectives by Fund - It shall be the intent of the County to set objectives for the Corporate, Enterprise Surcharge and Enterprise General Funds with regard to reserve policies. The County shall set reserves at a minimum of 3 months operating expenditures in the Corporate Fund. The Enterprise Surcharge Fund will have a minimum fund balance of $3 million each year”, and
WHEREAS, the County has established additional reserve funds to account for reserves in excess of the required 3 months operating expenditures in the Corporate (General) Fund as follows: the Special Reserve Fund, Resolution 13-87, which was established to set aside reserves for specific future budgeted expenditures, the Emergency Reserve Fund, Resolution 14-98, which was established to set aside funds for an unbudgeted emergency expenditure or shortfall in General Fund Other Tax Revenue, the Property Tax Freeze Protection Fund, Resolution 14-99, which was established to set aside funds to be drawn upon in the future in lieu of a property tax levy increase, and the Covid Payroll Reimbursement Fund, Resolution 22-80, which was established for the purposes of tracking savings generated by payroll reimbursements from the CARES Act Fund and subsequently from the American Rescue Plan (ARPA) funds, and
WHEREAS, for financial reporting purposes, the Special Reserve Fund, the Emergency Reserve Fund, the Property Tax Freeze Protection Fund, and the Covid Payroll Reimbursement Fund, are all considered sub-accounts of the General Fund, and
WHEREAS, for purposes of clarity and transparency, in both budgeting and financial reporting, and in times where excess reserves are used to balance the General Fund - General Account annual budget, it would be prudent to consolidate these four excess reserve funds into one fund containing excess reserves.
NOW, THEREFORE, BE IT RESOLVED by the Kane County Board that the Emergency Reserve Fund, the Property Tax Freeze Protection Fund, and the Covid Payroll Reimbursement Fund be consolidated into the Special Reserve Account.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Kane County Board that the Kane County Financial Policies, under the section “Reserve Policies,” are amended as set forth in the attached Exhibit.
Passed by the Kane County Board on November 14, 2023
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John A. Cunningham, MBA, J.D. Corinne M. Pierog MA, MBA
Clerk, County Board Chairman, County Board
Kane County, Illinois Kane County, Illinois
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