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Part Of Cincinnati Budget Surplus Could Go To Rainy Day Accounts

Cincinnati Council will likely vote Wednesday to put additional money into the city's rainy day accounts.  Those are used for emergencies or unexpected expenses during any budget year.  

The additional money would come to the city's anticipated budget surplus for the fiscal year that ends Tuesday.  

Finance Director Reggie Zeno said it is important since the city is so reliant on income taxes.

“Because it represents such a significant percentage of the revenues available within the general fund,” Zeno said.  “If we have a very slight downward trend in income taxes, then that would have a direct impact on day-to-day services.  So that’s why it’s important for us within the general fund to maintain a stabilization fund.”

Council Member Chris Seelbach supported the proposal, but he did wonder about the message from city administrators.

“A couple weeks ago you said we’ve been too financially conservative, we should borrow $110 million,” Seelbach said.  “Now we’re being told we don’t have enough cash, and we should save this amount of money.”

Officials say the Government Finance Officers Association recommends a minimum of two months of estimated revenues in fund balance reserves.  

The city administration has a goal to reach that number by the 2020 fiscal year.