The Oklahoma City suburb of Norman has created a rainy-day fund that sets a target of 4.5% of general fund expenditures.
The net revenue stabilization fund approved last week by the Norman City Council is to be at least 3% of annual expenditures with a maximum of 6%.
The city’s 2% emergency fund is not affected by the new program.
Finance director Anthony Francisco said the new fund will assist in compliance with new budget guidelines that require strict segregation of various city funds.
“It gives more strength and validity to what the city’s already doing,” Francisco told the council. “It is prudent.”
Norman’s GO debt is rated Aa2 by Moody’s Investors Service.