[Adopted 4-11-1994; amended in its entirety 10-11-2005 by Ord. No. 05-27]
The general fund balance of the Town of Stratford, which is the difference between the assets and liabilities of the Town, shall have included in its fund balance reserve a section titled "Reserved Fund Balance - Reserve for Emergencies Fund." The Finance Department shall calculate and recommend amounts to be included in each annual budget and the Chief Executive Officer shall include an amount in each annual budget to fund and maintain the Reserve for Emergencies Fund at a level approximating 10% of the prior year's general fund expenditures. Sources of funding the Reserve for Emergencies Fund may include, without limitation, 50% of the excess of revenues over expenditures for any fiscal year, 50% of the year-to-year reduction in the aggregate principal and interest payments on the Town's general obligation indebtedness and 50% of unbudgeted or unplanned revenues from the sale of capital assets, recoveries from lawsuits, increases in unrestricted state grants and revenues, and other sources.
Amounts on deposit in the Reserve for Emergencies Fund may be maintained on deposit to support or enhance the Town's general obligation credit rating, or used to finance expenditures designated by the Town Council to be an emergency for which no other funding has been budgeted or is available. Such designation shall require the affirmative vote of eight members of the Town Council.