R-2015-10 CITY OF CLERMONT
RESOLUTION NO. 2015-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CLERMONT, LAKE COUNTY, FLORIDA ADOPTING A RESERVES
POLICY FOR THE CITY OF,CLERMONT; REPEALING ALL PRIOR
RESOLUTIONS IN CONFLICT HEREWITH; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Clermont deems it advisable and in the best
interest of the City to establish a Reserves Policy;
NOW, THEREFORE, BE IT RESOLVED, that the City of Clermont Reserves Policy
is hereby adopted as follows:
SECTION 1.
The City Council does hereby adopt the City of Clermont Reserves Policy as set forth in
Attachment A, attached hereto and incorporated herein. The City Council of the City of
Clermont may amend the Reserves Policy by Resolution when deemed necessary and in the best
interest of the City of Clermont.
SECTION 2.
Any resolution previously adopted by the City Council and in conflict herewith is hereby
repealed to the extent of the conflict.
SECTION 3.
This Resolution shall take effect immediately upon its adoption.
1
CITY OF CLERMONT
RESOLUTION NO. 2015-10
DONE AND RESOLVED by the City Council of the City of Clermont, Lake County,
Florida this 10th day of March, 2015.
CITY OF CLERMONT
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/ Gail L. Ash, Mayor
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Tracy Ackroyd, City Clerk
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CLER' (ONT Reserves Policy
Chace of Champions
A. Purpose
The purpose of the Reserves Policy is to provide'sufficient cash flow for daily financial needs, to
secure and maintain investment-grade bond ratings, to offset significant economic downturns
resulting in revenue shortfalls and to provide-funds for unforeseen expenditures. Reserves
information is used to identify the available resources to repay long-term debt, reduce property
taxes, add, expand or enhance existing programs, or enhance the financial position of the City,
in accordance with the policies established by the City Council
B. Definitions
1 Reserves—Total of cash, investments and receivables less current liabilities.
2 Restricted Reserves — The portion of reserves that is restricted by external sources
such as debt covenants, grantors, and contributors, regulations of other governments
or laws through constitutional provisions of enabling legislature or by the City
Council
3. Unrestricted Reserves —The portion of total reserves that is not restricted
4. Operating Expenditures — Total expenditures less capital outlay and any other non-
reoccurring expenditures
C. Restricted Reserves Established by the City Council
The City establishes a restricted reserve amount in the General Fund, Water Fund, Sewer
Fund, Stormwater Fund and Sanitation Fund identified as an Emergency Reserve. The
reserve is established to ensure funding of public services during disaster situations such as,
but not limited to hurricanes. The amount shall be twenty-five (25%) percent of the funds'
operating expenditures included in the budget approved at the beginning of each fiscal year
In addition, the City Council may establish additional restricted reserve amounts identified as
Capital Replacement Reserves in order to set aside funds for future major capital projects
The amounts shall be set by the City Council through the annual budget adoption process
The City shall strive to maintain the twenty-five (25%) reserve threshold in the Building Services
Fund and Employee Group Medical Self Insurance Fund as well.
All reserve restrictions amounts and descriptions shall be clearly identified in the annual budget
3-10-15
D. Reserves Spending Order
The City considers restricted reserves to be spent first when both restricted and unrestricted
reserves are available .unless there are external and/or internal restrictions that prohibit doing
this, such as grant agreements requiring dollar for dollar spending
E. Annual Review
Compliance with the provisions of this Policy shall be reviewed as part of the annual budget
adoption process. Minimum reserve targets may also be reviewed during the budget process.
Any changes to the targeted amounts established herein must be approved by the City Council
F. Effective Date
This Policy shall take effect immediately upon adoption
3-10-15