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RESERVE POLICY FOR GENERAL FUND - GENERAL ACCOUNT
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WHEREAS, Kane County Financial Policies, Section 17 - Reserve Policies, #1 - Objectives by fund state, "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"; and
WHEREAS, the County Board intends to create an Ordinance that will set the reserves at a minimum of 3 months operating expenditures in the Corporate Fund (General Fund - General Account - Fund #001); and
WHEREAS, the reserve amount be calculated as 3 months of the current year total budgeted expenditures of the General Fund - General Account, to be adjusted with each budget amendment; and
WHEREAS, if the General Fund - General Account does not have sufficient reserves to maintain at least 3 months operating expenditures in reserves, the Finance Department is directed to transfer monies from the General Fund - Special Reserve Account #112; and
WHEREAS, if the General Fund - Special Reserve Account #112 does not have sufficient monies to transfer to the General Fund - General Account, no further budget amendments increasing the budgeted expenditures of the General Fund - General Account will be approved by the County Board; 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; and
WHEREAS, the County Board shall not adopt an annual budget and appropriation for the General Fund - General Account wherein less than 3 months of reserves would remain at the end of that fiscal year budg...
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