PUBLIC LAW 106-553—APPENDIX A 114 STAT. 2762A-43
"(b) CONTINGENCY RESERVE FUND. —
"(1) IN GENERAL.— T here is established a contingency cash
reserve fund (in this subsection referred to as the 'contingency
reserve fund') as an interest-bearing account (separate from
other accounts in the General Fund) into which the Mayor
shall deposit in cash not later than October 1 of each fiscal
year (beginning with fiscal year 2005) such amount as may
be required to maintain a balance in the fund of at least
3 percent of the total budget appropriated for operating expenditures for such fiscal year which is derived from local funds
(or, in the case of fiscal years prior to fiscal year 2007, such
amount as may be required to maintain a balance in the
fund of at least the minimum contingency reserve balance
for such fiscal year, as determined under paragraph (2)).
" (2) DETERMINATION OF MINIMUM CONTINGENCY RESERVE
BALANCE. —
"(A) IN GENERAL.— The 'minimum contingency reserve
balance' with respect to a fiscal year is the amount equal
to the applicable percentage of the total budget appropriated from local funds for operating expenditures for
such fiscal year which is derived from local funds.
"(B) APPLICABLE PERCENTAGE DEFINED.— In subparagraph (A), the 'applicable percentage' with respect to a
fiscal year means the following:
"(i) For fiscal year 2005, 1 percent.
"(ii) For fiscal year 2006, 2 percent.
"(3) INTEREST.— Interest earned on the contingency reserve
fund shall remain in the account and may only be withdrawn
in accordance with paragraph (4).
" (4) CRITERIA FOR USE OF AMOUNTS IN CONTINGENCY
RESERVE FUND. —The Chief Financial Officer, in consultation
with the Mayor, shall develop a policy governing the use of
the contingency reserve fund which shall include (but which
may not be limited to) the following requirements:
"(A) The contingency reserve fund may only be used
to provide for nonrecurring or unforeseen needs that arise
during the fiscal year, including expenses associated with
unforeseen weather or other natural disasters, unexpected
obligations created by Federal law or new public safety
or health needs or requirements that have been identified
after the budget process has occurred, or opportunities
to achieve cost savings.
"(B) The contingency reserve fund may be used, if
needed, to cover revenue shortfalls experienced by the District government for 3 consecutive months (based on a
2 month rolling average) that are 5 percent or more below
the budget forecast.
"(C) The contingency reserve fund may not be used
to fund any shortfalls in any projected reductions which
are included in the budget proposed by the District of
Columbia for the fiscal year.
" (5) ALLOCATION OF CONTINGENCY CASH RESERVE.— Funds
may be allocated from the contingency reserve fund only after
an analysis has been prepared by the Chief Financial Officer
of the availability of other sources of funding to carry out
the purposes of the allocation and the impact of such allocation
on the balance and integrity of the contingency reserve fund.
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