§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

§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 […]

§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