ENROLLED
Senate Bill No. 407
(By Senators Love, Anderson, Bailey, Boley, Bowman,
Caldwell, Edgell, Facemyer, Hunter, Minard, Mitchell,
Prezioso, Redd, Ross, Rowe, Sprouse, Minear, Plymale, Helmick and Chafin)
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[Passed April 14, 2001; to take effect July 1, 2001.]
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AN ACT to amend chapter eight of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article thirty-seven,
relating to authorizing a rainy day fund for municipalities
known as a financial stabilization fund; naming act; providing
findings of Legislature; authorizing municipalities to create
financial stabilization funds; specifying the receipts
available for the fund; establishing a cap of 30 percent for
the fund; authorizing investment of funds; and specifying
authorized expenditures from the fund.
Be it enacted by the Legislature of West Virginia:
That chapter eight of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article thirty-seven, to read as follows:
ARTICLE 37. MUNICIPAL FINANCIAL STABILIZATION FUND ACT.
§8-37-1. Short title.
This act may be known and cited as the "Municipal Financial
Stabilization Fund Act".
§8-37-2. Findings and declarations.
The Legislature finds and declares that:
(1) Municipalities should maintain a prudent level of
financial resources to try to protect against reducing service
levels or raising taxes and fees because of temporary revenue
shortfalls, unpredicted one-time expenditures or emergency
situations; and
(2) The creation, maintenance and use of a financial
stabilization fund will provide municipalities with assistance to
meet these challenges, as well as enable them to improve their
financial management and practices.
§8-37-3. Budget stabilization fund; creation; appropriation;
maximum.
(a) A municipality may create a financial stabilization fund
by a majority vote of its governing body. The fund may receive
appropriations, gifts, grants and any other funds made available.
(b) The governing body may appropriate a sum to the fund from any surplus in the general fund at the end of each fiscal year or
from any other money available.
(c) The amount of money in the fund may not exceed 30 percent
of the municipality's most recent general fund budget, as
originally adopted. When the fund exceeds the 30 percent, the
governing body shall transfer the excess to any fund it considers
appropriate.
§8-37-4. Fund investment; usage.
(a) The governing body may invest the money in the fund as it
considers appropriate, with the earnings retained by the fund.
(b) The governing body may appropriate money in the financial
stabilization fund upon a majority vote for the following purposes:
(1) To cover a general fund shortfall; or
(2) Any other purpose the municipality considers appropriate.
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