Chapter 706: General Fund, Fund Balance Reserve Policy

Section 706.01 General Fund Reserve Policy

Cuyahoga County shall maintain a General Fund Reserve Balance of at least twenty-five percent (25%) of the prior year’s actual General Fund expenditures. Capital expenditures paid for from the General Fund shall be included as expenditures only to the extent of $10 million. Expenditures, normally paid for from the General fund, that are instead paid for from a special one-time revenue source, to the extent that they exceed $10 million, shall be included as General Fund expenditures. The Fiscal Officer shall calculate the General Fund Reserve requirement and publish it annually as part of the Results of Operations Report. Designation of a possible future expenditure as a “reserve on balance” shall not be considered an obligation which must be subtracted from the cash balance to determine available reserves.

(Ordinance Nos. O2021-0010, Enacted 7/6/2021, Effective 7/8/2021; O2011-0056, Enacted 5/8/2012, Effective 5/11/2012)

Section 706.02 Permitted Uses

The General Fund Reserve may only be used to stabilize revenues, mitigate a projected deficit in the current operating period, retire or defease outstanding bonds or notes of the County, fund one-time or unanticipated expenditures, and pay judgments or otherwise settle legal disputes and claims.

(Ordinance No. O2011-0056, Enacted 5/8/2012, Effective 5/11/2012)

Section 706.03 Reduction in General Fund Reserve Balance

A. Any legislative action that results in reducing General Fund reserves below the twenty-five percent (25%) threshold shall contain a provision authorizing the use of reserves.

B. The County Executive shall inform the Council, with at least one hundred twenty (120) days' notice whenever possible, whenever the County has obligations that would reasonably be expected to result in the General Fund reserve declining below the twenty-five percent (25%) threshold.

C. At any other time that the Council determines that the use of General Fund reserves within the twenty-five percent (25%) threshold is needed for one or more of the reasons provided for in Section 706.02 of the Cuyahoga County Code, the Council shall by resolution, authorize the use of such reserves.

(Ordinance No. O2011-0056, Enacted 5/8/2012, Effective 5/11/2012)