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File #: 220500    Version: 1 Name:
Type: Ordinance Status: Passed
File created: 6/7/2022 In control: Council
On agenda: 6/16/2022 Final action: 6/16/2022
Title: Amending Chapter 2, Code of Ordinances, by repealing Section 2-1954 relating to the City's fund balance and reserve policy and enacting in lieu thereof one new section of like number and subject.
Sponsors: Quinton Lucas
Attachments: 1. fact sheet, 2. 220500com, 3. Copy of 220500 Fiscal Note v2, 4. Fund Balance 220500, 5. Redline - 220500 (2-1954), 6. Authenticated Ordinance 220500
ORDINANCE NO. 220500

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Amending Chapter 2, Code of Ordinances, by repealing Section 2-1954 relating to the City's fund balance and reserve policy and enacting in lieu thereof one new section of like number and subject.

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WHEREAS, the City has a thorough annual budget process, including quarterly budget analysis, and five-year business planning cycle during which Council, City staff, and residents have the opportunity to shape how the City spends taxpayer resources; and

WHEREAS, the City currently has a structural imbalance driven by transfers out of our General Fund; and

WHEREAS, one-time recovery resources, which helped address our budget imbalances, will soon be exhausted; and

WHEREAS, maintaining a healthy General Fund Balance is critical for our ability to address emergencies, provide stability through economic cycles, and protect the City's creditworthiness; and

WHEREAS, it is a best practice to make any appropriations of the unassigned fund balance in the following fiscal year's budget; and

WHEREAS, the City Council is seeking efforts to be more intentional in our budgeting processes, as evidenced by Resolution No. 220394, which was passed on May 26, 2022, and directed City staff to evaluate Priority-Based Budgeting; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That Chapter 2, Code of Ordinances of the City of Kansas City, Missouri, is hereby amended by repealing Section 2-1954 relating to the City's fund balance and reserve policy and enacting in lieu thereof one new section of like number and subject, to read as follows:

Sec. 2-1954. - Fund balance and reserve policy.

(a) Policy.

(1) It is the policy of the city to maintain its various fund balances and financial reserves at levels sufficient to pay obligations when due, address emergencies, cover temporary revenue shortfalls, provide stability throughout economic cycles and to protect the city's creditworthiness...

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