ADOPTED - JANUARY 22, 2002

Agenda Item No. 18

Introduced by the Finance Committee of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION ADOPTING A POLICY ON FINANCIAL RESERVES

RESOLUTION #02-017

WHEREAS, it is in the best interests of the Ingham County government; its taxpayers, and its residents to maintain sufficient financial reserves to provide for the stable operation of the county government; to assure that the county's financial obligations will be met; and to assure continuance of a strong credit rating; and

WHEREAS, it has been recommended by the County Controller and the county's financial consultants that a policy be adopted establishing the desired level of financial reserves that are appropriate to provide for the stable operation of the county government; to assure that the county's financial obligations will be met; and to assure continuance of a strong credit rating; and

WHEREAS, the Board of Commissioners is committed to maintaining its financial reserves at an appropriate level and to managing its expenditures as necessary to adjust to its revenues.

THEREFORE BE IT RESOLVED, that the County Board of Commissioners establishes the following goals for establishing and maintaining an appropriate level of financial reserves:

It is the goal of the County that the Budget Stabilization Fund be funded at the legal maximum of 15% of the average of the last five years' budget, or 15% of the current year's budget, whichever is less; and that such balance be maintained at no less than 13%.

It is the goal of the County that the unreserved undesignated balance in the General Fund not be less than 5% of the total General Fund expenses of the preceding year.

It is the goal of the County to maintain sufficient reserves in the Public Improvement Fund to address annual needs for maintaining county facilities in an appropriate state of repair. The desired level of funding in this fund is determined to be 1/10 mill of the property tax levy.

The County Controller shall annually advise the Finance Committee of the status of the balances in the funds, and as appropriate, shall provide recommendations for maintaining the balances at appropriate levels.

FINANCE: Yeas: Grebner, Stid, Swope, Hertel

Nays: None Absent: Krause, Schafer, Minter Approved 1/16/02