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General Fund Reserves Use Policy Resolution#34722 <br /> • The General Reserve Fund is now at a level that allows the Council to use reserves to counteract one-time fluctuations <br /> in revenues and expenditures or meet large unexpected one-time expenditures. The 5 percent level is not adequate to <br /> offset the combination of slower revenue growth and fund large unexpected expenditures. That is it would not provide <br /> any insulation against the effects of an economic downturn. The following paragraphs develop alternative estimates of <br /> General Reserve Fund levels that would provide a reserve capable of funding extraordinary one-time expenditure <br /> requirements and ameliorate the effects of an economic downturn,adverse legislation,or adverse PUC decisions. <br /> Revenue History FY 1974-75 To FY 1988-89 <br /> Table 4 summarizes historical General Fund discretionary revenue growth characteristics. In Table 4 revenue is <br /> summarized for the"Big Four"revenues and"All Other"discretionary revenues.Two discretionary revenue streams are <br /> shown in Table 4. The top line of Table 4 represents"unadjusted"discretionary revenues, i.e.,total revenues less short- <br /> term borrowing,contracts, service reimbursements,and grants and donations. The"adjusted"line,at the bottom of <br /> Table 4 nets out Federal Revenue Sharing transfers to the General Fund, other irregular or one-time transfers,and <br /> construction permit revenues. <br /> Table 4: General Fund Revenue Growth <br /> City of Portland <br /> General Fund Revenue Growth <br /> Characteristics,FY 1974-75 to FY 1988-89 <br /> Growth Rates(%) <br /> Com- <br /> pound <br /> Item Annual Maximum Minimum <br /> IIIGeneral Fund Discretionary 5.5% 12.2% 0.6% <br /> Big Four Revenue 9.2% 14.4% 2.1% <br /> 811- <br /> Property Taxes 814 7.7% 13.2% 2.4% <br /> Transient Lodgings 821 12.0% 31.4% -9.2% <br /> Business Licenses 831 11.7% 42.9% -10.9% <br /> Utility License 832 13.3% 22.1% 2.9% <br /> All Other Discretionary(**) -2.8% 16.9% -7.4% <br /> Adjusted Discretionary(*) 8.5% 14.5% 0 0% <br /> (*) Net of Federal Revenue Sharing,one-time or irregular transfers and <br /> construction permits. <br /> (**)Average of 6 negative changes <br /> Table 4-General Fund Revenue Growth <br /> This line more accurately reflects the General Fund's current organizational make-up and revenue mix. <br /> III <br /> 298 City of Portland, Oregon—FY 1999-00 Adopted Budget <br />