HB 1827 Summary

• Clarifies that the earnings component of the City of Oxford Municipal Reserve and Trust Fund equals 3% of the full fund balance calculated using a rolling 12-quarter average of quarter-end market values, with all remaining investment income retained in the corpus component.

• Authorizes trustees to expend from the corpus component amounts needed to pay management fees if the earnings component is insufficient to cover accounting, legal, and investment advisor costs.

• Prohibits distribution of the earnings component to the city's general fund if the full fund balance falls below the initial deposit amount.

• Allows the city to withdraw from the corpus component by three-fourths board vote in emergencies or when budgeted collections fall more than 5% below estimates for three consecutive months, limited to 98% of projected shortfalls.

• Permits unanimous board vote with mayoral approval for one discretionary corpus withdrawal per four-year term, limited to 10% of the corpus, after conducting a public hearing; all earnings must be retained until the corpus is replenished.