§ 14-5. Corporate fund balance.

(a)

It is the policy of the village to maintain a minimum fund balance in the corporate fund equal to at least three months or 25 percent of the total annual expenditures in the corporate fund as provided in the annual budget. For the purposes of this section, a minimum fund balance means cash and investments only and does not include other assets.

(b)

The minimum fund balance shall be calculated by dividing the audited total amounts of the cash and investment balances in the corporate fund as of the last day of the fiscal year; by the amount of the total annual budgeted expenditures in the corporate fund for the immediately following fiscal year.

(c)

In that event that the "minimum fund balance," calculated as provided in subsection (b) of this section, exceeds 25 percent, the amount of any such excess shall be transferred by the budget officer to the corporate restricted reserve fund. Amounts in the corporate restricted reserve fund may only be expended by the corporate authorities for the following purposes:

(1)

To restore the minimum fund balance in any succeeding annual budget to not less than 25 percent; or

(2)

To fund any capital expenditures within the current annual budget for the corporate fund that are not otherwise funded from current revenues.

(Ord. No. 2088, § 28.1.16, 4-10-2007)