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General Fund Reserves Use Policy Resolution#34722 <br /> • Table 6: Cases 2 and 3 Reserve Levels <br /> CASE 2 <br /> Cyclical Reserve Calculation <br /> Use Lowest Year-to-Year Overall Growth <br /> Item Required Reserve <br /> Unexpected Expense.(5.00%) $8,704,384 <br /> Counter cyclical Reserve $7,699,782 <br /> Required Reserve Fund Level $16,404,167 <br /> Reserve Level Percentage 9.4% <br /> CASE 3 <br /> Cyclical Reserve Calculations <br /> Use Lowest Year-to-Year Overall Growth <br /> Item Required Reserve <br /> Unexpected Expense.(5.00%) $8,704,384 <br /> Counter cyclical Reserve $9,912,685 <br /> Required Reserve Fund Level $18,617,070 <br /> Reserve Level Percentage 10.7% <br /> • Table 6-Cases 2 and 3 Reserve Levels <br /> Conclusion <br /> The three different reserve level calculations shown above suggest that the desired General Reserve Fund level is about <br /> 10 percent of total annual General Fund Revenues net of short-term borrowing receipts. About 5 percentage points <br /> constitutes a reserve for large unexpected one-time expenditures. An additional 5 percentage points would provide a <br /> counter-cyclical reserve. A 10 percent General Reserve Fund level would give the Council flexibility to contend with <br /> the combination of large one-time unexpected expenditures and slower revenue growth due to an economic downturn. <br /> The analysis above suggests that the 5 percent counter-cyclical reserve element would provide about 12 to 24 months of <br /> leeway in adjusting to the effects of slower revenue growth due to an economic slowdown. <br /> • <br /> City of Portland,Oregon—FY 1999-00 Adopted Budget 301 <br />