Snohomish County Councilman Brian Sullivan recently introduced an ordinance creating a Revenue Stabilization Fund, commonly referred to as a Rainy Day Reserve Fund, which was approved by County Executive Aaron Reardon.

The ordinance will allow the county to reserve funds to mitigate the impact of economic swings such as those currently causing turmoil nationwide. A previous fund created in 1993 has been inactive since 2003 and was repealed by the County Council in 2006.

"I'm pleased to see the steps that will allow us a better strategy and a more prudent approach to saving funds for a rainy day," Reardon said. "We must continue to show fiscal discipline."

Specifically, the ordinance requires that the county deposit any available General Fund reserves that exceed liquidity needs into the new Stabilization Fund. Each annual budget also must identify any additional funds that can be contributed to the Stabilization Fund.

"A stricter General Fund reserve policy is an essential part of preparing for future downswings while limiting their impact on our budget," Reardon said.

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