[Adopted 1-9-2012 by Res. No. 1830]
A. 
The annual Township budget prepared and adopted pursuant to Article VII of the Home Rule Charter and Article X of the Administrative Code shall include a December 31 general fund balance (the "fund balance") that is a minimum of 17% of budgeted general fund revenues for that budget year, with the target being no less than 18.5% of budget revenues (the "target").
B. 
Only under the following circumstances may the fund balance be budgeted to fall below 17%:
(1) 
During or immediately following a year in which a federal or state declared natural disaster or state of emergency has been declared in Haverford Township; or
(2) 
With seven votes of the entire membership of the Board (i.e., assuming a nine-member board).
C. 
In any year in which the general fund balance actually falls below 17%, the fund balance shall be budgeted to replenish the target no later than the second budget following said shortfall. This will be accomplished through any combination of expenditure cuts and/or tax and/or other fee increases (for example, if the actual 2012 fund balance falls below 17%, the fund balance must be budgeted to return to 17% by the 2014 budget).
D. 
Only under the following circumstances may the fund balance be budgeted to rise above 18.5%:
(1) 
When a collective bargaining agreement, pursuant to Act 111 or Act 195, is scheduled to expire within the next two budget cycles; or
(2) 
In anticipation of a large capital or other unique operating expense being realized within the next two budget cycles; or
(3) 
With a minimum seven votes of the entire membership of the Board (i.e., assuming a nine-member board).
This policy shall be reviewed by the Board every three years to allow for changes within the public finance environment.