Sarasota County Financial Reserves Policy

RESOLUTION NO. 2017- 158 b.ll !;}iU liLl21. rll!:.U FOR ilit: f: _ .1 '.',~·-! (:~~f1 ?0 1 ~ ,,1 a. r (• I ...,_, .... ;; .l I .-· I u t\ARU.I t:.l :. r.l !t: RESOLUTION OF THE BOARDOF COUNTY CLERK OF n IE CIHCU!T COUE 1 COMMISSIONERS OF SARASOTA COUNTY, FLORID~ARASOl\ CGUHTY. FL RE: THE SARASOTA COUNTY FINANCIAL RESERVES POLICY WHEREAS, on June 7, 2006, in recognition that it is essential for governments to maintain adequate levels of fund balance to mitigate current and future risks such as revenue shortfalls, natural disasters, unanticipated expenditures, and to ensure stable tax rates, the Board of County Commissioners (the "Board") adopted Resolution No. 2006-130, the Sarasota County Financial Reserves Policy; and WHEREAS, Sarasota County's reserve policies are based on sound fiscal principles designed to allow the County to maintain continuity of operations in adverse conditions while being mindful of our fiduciary responsibility to taxpayers, both current and future generations; and WHEREAS, the County realizes that adequate fund balance levels are an essential component of the County's overall financial management strategy and a key factor in external agencies' measurement of the County's financial strength and that these Financial Reserve Policies will need to be adjusted from time to time as conditions change; and WHEREAS, various bond rating agencies, particularly Fitch Ratings, recognizes that the best reserve policies provide both specificity and flexibility, accomplishing one or more of at least three main criteria: establishing a target level ofreserves, or a reserve floor; specifYing the appropriate circumstances for drawing down reserves; and directing the replenishment of reserves; and WHEREAS, Sarasota County lies within a coastal zone highly susceptible to hurricane and storm damage; and WHEREAS, debt service funds will be maintained as required by bond covenants; and WHEREAS, there exists uncertainty in the economic markets around the world, in regards to the cost of construction materials, interest rates, personnel costs, medical insurance costs, and general inflation; and WHEREAS, each sizable fund has been analyzed to determine the type of risk it may be exposed to, the duration of the risk, methods to mitigate that risk and the amount of funds needed to mitigate against that risk; and WHEREAS, recovery of the Contingency/ Emergency/Disaster Relief Reserve after drawdown will be examined on an annual basis to determine the need for increases in fees I ta-xes or expenditure reductions to ensure the funds are replenished within a 5 year time period, all other reserves will be replenished within 7 years; and R. 2.017- ISB