HomeMy WebLinkAbout58-17 - Res. Amending Res. 77-09 Establishing a General Fund Reserve and Contingency Policy for Mason CountyRESOLUTION No . on -11
AMENDING RESOLUTION 77-09
IN THE MATTER OF ESTABLISHING A GENERAL FUND RESERVE AND CONTINGENCY
POLICY FOR MASON COUNTY, WASHINGTON
WHEREAS, the Mason County Board of County Commissioners, as the county
legislative authority and the Mason County Finance Committee deem it to be fiscally
responsible to maintain cash flow reserves in the County General Fund and to provide
sufficient reserve funds as required by law to cover bond covenants, the smooth running
of the County and pay current obligations;
NOW THEREFORE BE IT RESOLVED by the Mason County Board of County
Commissioners that the General Fund Reserve and Contingency Policy be adopted as part
of the Current Expense Budget process to achieve the goals outlined. It is the intent of the
Mason County Board of County Commissioners that they shall establish these goals over
a five year period beginning in 2018 for all reserves except the Contingency Reserve
which shall be established over the successive next five years beginning in 2019.
BE IT FURTHER RESOLVED by the Mason County Board of County
Commissioners that the General Fund Reserve and Contingency Policies be established
as defined herein and within a county wide Financial Management Policy to be adopted
separately by year end 2017.
A. General Policy
The County shall maintainreserves required by law, ordinance and/or bond covenants.
All expenditures drawn from reserve accounts shall require prior Board approval unless
previously authorized by the Board for expenditure within the County's annual budget.
The County Finance Committee will review annually the required reserve levels that is
necessary to meet the reserves established herein. If it is determined that the reserves
should be adjusted, the County Finance Committee shall propose an amendment to these
policies.
If reserves and/or fund balances fall below required levels as set by this policy, the
County shall include within its annual budget a plan to restore reserves and/or fund
balance to the required levels.
The County's annual general fund budget will be adopted in the positive with
expenditures not exceeding revenues, excluding beginning and ending fund balance~
unless the Mason County Board of County Commissioners develop a plan to restore the
shortfall to the reserve balances within one calendar year.
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The County will allocate any funds from unanticipated excess revenues and/or
unexpended budget authority •in the year following the actual recognition of these funds
first to funding reserves as set out in this policy then to other unanticipated expenditures.
All reserves will be presented in the County's annual budget.
B. General Fund Operating Reserves
The County will maintain a General Fund Operating Reserve to provide for adequate
cash flow, budget contingencies, and insurance reserves. Under this policy General
Operating Reserves will be budgeted_in the range of 12% -15% of the prior year's actual
expenditures, excluding beginning and ending fund balances.
C. Contingency Reserve
The County will maintain a Contingency Fund and shall maintain a reserve equal to
$1,000,000 to provide a financial cushion to cover revenue shortfalls resulting from
unexpected economic changes or recessionary periods or to provide funds in the event of
major unplanned expenditures the County could face.
D. Technology Replacement Reserves
The County will maintain a Technology Replacement Reserve for replacement of costs
entity wide to cover computer hardware, software, or telephone equipment identified in
the County's Technology Replacement listing. The required level of reserve will equal
each year's scheduled costs'. For example, if the 2017 equipment costs are budgeted at
$100,000 the fund reserve balance must equal or exceed $100,000. Contributions will be
made through assessments to the using funds and departments and maintained on a per
asset basis.
E. General Fund Equipment and Vehicle Replacement Reserves
The County will maintain a General Fund reserve for the replacement of vehicles and
equipment identified on the County's equipment replacement listing. The required level
of reserve will equ,al each year's scheduled replacement costs. For example, if the 2017
equipment replacement costs are budgeted at $100,000, the fund reserve balance must
equal or exceed $100,000. Contributions will be made through assessments to the using
funds and departments and maintained on a per asset basis.
F. Accrued Leave Reserve
The County will maintain an Accrued Leave Reserve to cover the cost of the liability in
its Accrued Leave Account. The reserve will be at least sufficient to cover one years
estimated accrued leave payout as well as any accrued leave payouts known and required
to be paid out in future years.
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Approved thiJJ}.y of {'J,;fof.Jer" , 201 7.
Mason County Board of Commissioners
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Approved this ~day of ~b<£io17.
Mason County Finance Committee
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Clerk of the Board
Approved as to form:
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Tim Whitehead
Chief Deputy Prosecuting Attorney
ommissioner
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Terri Drexler:;mmissi
razier, Mason County Treasurer, Chair
~~or, s~retary
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