Page:United States Statutes at Large Volume 114 Part 4.djvu/743

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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 "(3) INTEREST.— Interest earned on the contingency reserve fund shall remain in the account and may only be withdrawn in accordance with paragraph (4).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.