Cash reserve fund a near future possibility
EAST LIVERPOOL — For the first time since the 1990s, the city could be in good enough financial shape to create a small cash reserve fund, which will be decided by officials in the near future.
During a meeting Tuesday of city council’s finance committee, Auditor Marilyn Bosco reported she expected to have prepared for Monday’s council session an ordinance establishing a cash reserve fund which has been discussed at past committee meetings.
Although she did not have a set amount that will be earmarked for the fund, should council enact the legislation, Bosco has suggested at prior meetings initially placing $20,000 in the fund. She said Tuesday council might want to wait until January to decide the amount to see how much of a carryover balance is left at the end of this year.
After Tuesday’s committee meeting, she made available the proposed ordinance, which states that the reserve fund’s purpose is to set aside resources for the payment of accumulated sick and vacation leave, comp time, retirement payments, salaries if the number of pay periods exceed the usual number, unanticipated expenditures, temporary shortfalls in revenue or as a hedge against downturns in the economy.
Money for the reserve fund will come from the general fund, the amount to be determined by the auditor and council, with council approval to place the funds and to spend them.
Bosco said she expects an extra pay period in the near future for which this reserve fund could be utilized.
Council could be asked Monday to consider the legislation, which was not ready in time Tuesday for recommendation by the committee.
The committee did vote to forward for council’s consideration two ordinances, the first authorizing the board of control to advertise for bids and enter a contract for meters, chemicals and supplies for the water and wastewater departments and the second to adjust appropriations for the end of the year.
Chairman Fred Rayl said the next committee meeting will be at 3 p.m. Dec. 31.