AN ORDINANCE TO PROVIDE FOR THE CREATION AND USE OF A BUDGET STABILIZATION FUND FOR THE COUNTY OF CALHOUN, AS AUTHORIZED PURSUANT TO 1978 P.A. 30, AS AMENDED, MCLA 141.441, ET. SEQ.
Adopted: November 20, 2003
THE PEOPLE OF THE COUNTY OF CALHOUN, MICHIGAN DO ORDAIN:
Section 1.0 Deeming it advisable and in the interest of the County for the stabilization of the budget and for effective use of tax dollars, Calhoun County does hereby create a fund to be known as the Budget Stabilization Fund for the purposes set forth in this Ordinance.
Section 2.0 As used in this Ordinance "Fund" means a budget stabilization fund.
Section 3.0 There is hereby created a Budget Stabilization Fund to be used for and as set forth in this Ordinance, as authorized by 1978 P.A. 30, as amended, MCLA 141.441, et. seq.
Section 4.0 Each fiscal year following the fiscal year of the creation of this Fund, the County may appropriate by a resolution adopted by a two-thirds vote of the members elected and serving of the Board of Commissioners, all or part of a surplus in the General Fund resulting from an excess of revenue in comparison to expenses.
Section 4.1 The County shall not impose additional taxes to produce revenue in excess of that needed in its estimated budget in order to provide for money to be appropriated to the Fund.
Section 4.2 The amount of money in the Fund shall not exceed either 15% of the County’s most recent General Fund budget, as originally adopted, or 15% of the average of the County’s five most recent General Fund budgets, as amended, whichever is less.
Section 4.3 The money in the Fund may be invested as provided by law, with the earnings of the Fund to be returned to the County’s General Fund.
Section 4.4 If the money in the Fund exceeds that permitted as set forth in Section 4.2 above, the excess money shall be appropriated in the County’s next General Fund budget, but shall not be appropriated to the Fund.
Section 5.0 Money in the Fund may be appropriated by a resolution adopted by two-thirds vote of the members elected and serving of the Board of Commissioners for the following purposes:
To cover a General Fund deficit when the County’s annual audit reveals such a deficit.
To prevent a reduction in the level of public services or in the number of employees at any time in a fiscal year when the County’s budgeted revenue is not being collected in an amount sufficient to cover budget expenses.
To prevent a reduction in the level of public services or in the number of employees when in preparing the budget for the next fiscal year, the County’s estimated revenue does not appear sufficient to cover estimated expenses.
To cover expenses arising because of a natural disaster, including a flood, fire, or tornado. However, if federal or state funds are received to offset the appropriations from the Fund, that money shall be returned to the Fund.
Section 5.1 In determining whether the County’s revenue is not sufficient to cover its expenses, a reduction in the amount of money received for the fiscal year from any source in comparison to the amount of money received for the previous fiscal year, including a reduction in the allocation of state tax money, shall be considered.
Section 6.0 The money in the Fund shall not be appropriated for the acquisition, construction or alteration of a facility as part of a general capital improvements program.
Section 7.0 Words or terms not defined shall be given their common meaning. Headings shall be deemed for convenience only and shall not limit the scope of any article or section. Use of the word shall is always deemed mandatory.
Section 7.1 If any part of this Ordinance shall be held invalid, such part shall be deemed severable and the invalidity thereof shall not affect the remaining parts of the Ordinance.
Section 8.0 This Ordinance shall be effective upon publication.