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RES2560CITY OF RENTON, WASHINGTON RESOLUTION NO. 2560 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, ESTABLISHING A FINANCIAL POLICY TO ENDEAVOR TO INCLUDE IN THE ANNUAL BUDGET AT LEAST EIGHT PERCENT (8%) OF NET OPERATING REVENUES AS UNRESTRICTED FUND BALANCES TO SERVE AS PROTECTION AGAINST ECONOMIC DOWNTURNS AND THE RESULTING REDUCTION IN CITY REVENUES. WHEREAS, the City of Renton found itself in financial distress in 1982 as a result of two recessionary downturns and was required to increase revenues and reduce service levels, and WHEREAS, during these recessions, the City relied heavily on fund balances which had accrued in the 1970's to mitigate the effects of reduced City revenues, and, WHEREAS, the City's revenue base fluctuates dramatically with economic business cycles, and, WHEREAS, the City will experience reduced revenues in future recessions, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS. SECTION I : The City shall endeavor to budget at least eight percent (8%) of net operating revenues as unrestricted fund balances. SECTION II: Such fund balances should be budgeted in the Contingency Fund and be earmarked separately from normal contingency items to provide Council awareness of the purpose and amount of such fund balances. CITY OF RENTON , WASHINGTON RESOLUTION NO. ?560 ~ continued PASSED BY THE CITY COUNCIL this day of August, 1984. Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this ^h day of August, 1984. Approved as to form: Lawrence J. Warrwi, City Attorney Barbara Y. Shinpoch, Mayor