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CITY OF NORTH OLMSTED <br />RFSOLUTION NO. 95-143 <br />By: Councilman-at-Large Norm Musial <br />A RESOLUTION URGING THE STATE LEGISLATURE TO <br />PROVIDE FOR A LAW WHICH WOULD EXPRESSLY PERMIT <br />MUNICIPAL CORPORATIONS TO SET ASIDE FROM <br />CURRENT FISCAL YEAR RESOURCES TO BE PLACED IN A <br />SEPARATE FUND (RAINY DAY RESERVE FUND) TO PAY <br />UNANTICIPATED GENERAL FUND OBLIGATIONS, AND <br />DECLARING AN EMERGENCY AS AMMED. <br />WHEREAS, according to the Auditor of State's office, municipalities do not have statutory <br />authority to create a fund (a rainy day reserve fund) for paying future unanticipated General Fund <br />obligations; and <br />WHEREAS, public finance professionals including nationally recognized bond rating <br />agencies typically recommend that municipalities maintain a positive balance in their general fund; <br />and <br />WHEREAS, a"rainy day reserve fund" may serve to enable a municipality to secure a <br />higher general obligation bond rating and thereby result in reduced interest costs associated with <br />issuance of such bonds; and <br />WHEREAS, a"rainy day reserve fund" is yet another tool to provide for more efficient <br />and cost effective local government. <br />NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORTH <br />OLMSTED, COUNTY OF CUYAHOGA AND STATE OF OHIO: <br />SECTION 1: That it is the desire of this Council and administration to recommend that <br />the State Legislature enact express statutory for political subdivisions to establish a rainy day <br />reserve fund for the purpose of accumulating money for the payment of future unanticipated <br />General Fund obligations. <br />.-?? : ..