Reynoldsburg City
OH

Ordinance
6-18

Ordinance to ENACT a Cash Policy for the City

Information

Department:City Auditor's OfficeSponsors:
Category:Policy

Body

Request Council Pass the attached Cash Reserve Policy

Meeting History

Dec 11, 2017 7:33 PM  Finance and Administration Committee Committee Meeting
draft Draft

Mr. Harris: As it comes time to start financing the Rec Center that is currently under review and planning. One of the things that the folks at Moody who will be looking at these bonds and putting a rating to them look at things like this, a cash policy. One of the things that Moody is always concerned about with anybody who borrows large amounts of money is the bond holders have to be let known what your position is and can you pay *inaudible at bad times. One of the ways to do that is to have adequate cash on hand. This is one of the things that they do. This would be a cash reserve policy for the general fund that says you will keep a minimum of 25% of the annual expenditures in the general fund in cash that you don't drop below whatever that number is. Of course, as expenditures go up you'll have to keep a higher percent. It also has in here things to do if you do reach a certain percent as far as correcting it. One of the things is if you're buying one time purchases like trucks and that kind of stuff those go way after *inaudible obviously when you add payroll those things stay around forever. This went through the treasury investment board. They unanimously approved it. We've brought it on to council for your consideration. This does not have to be passed between now and the end of the year. It can go the full three readings and let it go without an emergency. This is something that we do need to consider and you probably should do prior to any trips to talk to people *inaudible. If you have any questions on it I will certainly answer those for you.

Mr. Cotner: This is common. Other communities are hearing these. What about the 25% amount. Is that a minimum requirement that they have?

Mr. Harris: Of course it's the minimum. You can keep more than that. We also have an extremely large contingency reserve fund about 2.6 million dollars, but 3/4% and that's plus the interest that makes it that goes up and will continue to go up, so you do have that. You also can move money between 410 and 110 if that becomes necessary in order to do that. The reason they do this is if there's a bad situation, another recession or something, are you going to be able to pay your bills. Under the Ohio revised code the State Constitution says in there that municipalities have to pay the bonds. I think it is something you should talk about. I think you should enact it. It will certainly help as we go forward in getting the financing done for the Rec Center.

RESULT:REFERRED TO COUNCIL [UNANIMOUS]
MOVER:Barth R. Cotner, At Large
SECONDER:Brett Luzader, Ward II
AYES:Barth R. Cotner, Chris Long, Dan Skinner, Brett Luzader
Dec 11, 2017 7:45 PM  City Council Regular Meeting
RESULT:REFERRED TO COMMITTEE
Dec 18, 2017 7:33 PM  Finance and Administration Committee Committee Meeting
RESULT:REFERRED TO COUNCIL [UNANIMOUS]
MOVER:Barth R. Cotner, At Large
SECONDER:Chris Long, At Large
AYES:Barth R. Cotner, Chris Long, Dan Skinner, Brett Luzader
Dec 18, 2017 7:45 PM  City Council Regular Meeting
RESULT:REFERRED TO COMMITTEE
Jan 8, 2018 7:33 PM  Finance and Administration Committee Committee Meeting
RESULT:REFERRED TO COUNCIL [UNANIMOUS]
MOVER:Barth R. Cotner, At-Large Councilmember
SECONDER:Mel Clemens, Ward 4 Councilmember
AYES:Barth R. Cotner, Brett Luzader, Marshall Spalding, Mel Clemens
Jan 8, 2018 7:34 PM  City Council Regular Meeting
RESULT:ADOPTED [UNANIMOUS]
MOVER:Barth R. Cotner, At-Large Councilmember
SECONDER:Marshall Spalding, Ward 3 Councilmember
AYES:Mel Clemens, Barth R. Cotner, Brett Luzader, Marshall Spalding, Stacie Baker, Kristin Bryant, Caleb Skinner

Discussion