BIL 127 Draft 01 2010-2012 - Laserfiche WebLink

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COUNTY OF HAWAII STATE OF HAWAII BILL NO. 127 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 43, OF THE HAWAII COUNTY CODE 1983 (2005 EDITIION, AS AMENDED) BY AMENDING SECTION 2- 219, SECTION 2 -220, SECTION 2 -221, SECTION 2 -222 AND SECTION 2 -223, AND ADDING A NEW SECTION, RELATING TO THE BUDGET STABILIZATION FUND. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. Governments should maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees because of temporary revenue shortfalls or unpredicted one -time expenditures. Such a policy identifies how to guide the financial actions in the event of temporary cash flow shortages, emergencies, and unanticipated economic downturns from a financial management perspective. The County of Hawai`i will increase the minimum targeted amount in the budget stabilization fund based on a percentage of operating expenses to address these potential problems. Bolstering the County's financial resources in advance of such situations may be viewed positively by the rating agencies when evaluating a government's credit quality. This ordinance clarifies the purpose of the budget stabilization fund, increases the minimum amount to be appropriated annually, establishes a policy of accruing between five and fifteen percent of the operational expenses excluding state and federal grants, codifies dissolution of the fund, and continues to demonstrate the administration's appropriate and prudent management of the County's finances. SECTION 2. Chapter 2, Article 43, of the Hawai`i County Code 1983 (2005 Edition, as amended), is amended to read as follows: "Section 2 -219. Creation of fund; Purpose. (a) Pursuant to section 10 -12, Hawai`i County Charter 2000, a special fund to be known as the budget stabilization fund is created. [for the purpose of meeting general The County to use during times of financial hardships while a plan for cost reduction or revenue enhancement is developed.] (b) The purpose of the budget stabilization fund shall be a temporary, supplemental source of funds for the County to use during times of financial hardships while a plan for cost reduction or revenue enhancement is developed. Additionally, the fund may be used to insulate general fund programs and current service levels from: (1) Revenue shortfalls to minimize the need for budget cuts or tax increases;