RES 2026-09 Emergency & Risk Stabilization Fund Utilization Policy TOWN OF TROPHY CLUB
RESOLUTION NO. 2026-09
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY
CLUB, TEXAS, ADOPTING THE EMERGENCY & RISK STABILIZATION
FUND UTILIZATION POLICY, ATTACHED HERETO AND
INCORPORATED HEREIN AS EXHIBIT "A"; AUTHORIZING THE TOWN
MANAGER TO MAKE MINISTERIAL REVISIONS TO THE POLICY;
REPEALING PRIOR INCONSISTENT POLICIES; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, pursuant to the Town Charter, the Town Council is designated as the
approving authority for all municipal policies, including those governing the spending of
Town funds; and
WHEREAS, the Town Council desires to establish clear guidelines and
parameters for the use of the Emergency & Risk Stabilization Fund to ensure fiscal
responsibility and timely response to emergencies; and
WHEREAS, the Emergency & Risk Stabilization Fund Utilization Policy (the
"Policy") establishes procedures for the use of funds to address unforeseen emergencies
impacting capital infrastructure, Town operations, and significant unanticipated liability-
related expenditures; and
WHEREAS, the Policy provides for appropriate oversight, accountability, and
reporting requirements to ensure transparency and proper stewardship of public funds;
and
WHEREAS, upon consideration, the Town Council finds and determines it to be in
the best interest of the health, safety, and welfare of the Town and its residents to adopt
the Policy, which is attached to this Resolution as Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS, THAT:
Section 1. The facts and recitals set forth in the preamble of this Resolution are
hereby found to be true and correct.
Section 2. The Town Council has reviewed the Emergency & Risk Stabilization
Fund Utilization Policy (the "Policy") and hereby adopts the Policy as set forth in Exhibit
"A", which is attached hereto and incorporated herein in its entirety.
Section 3. The Town Council hereby authorizes the Town Manager to make
ministerial revisions to the Policy from time to time, subject to written approval by the
Town Attorney.
RESOLUTION NO. 2026-09 PAGE 2
Section 4. Upon the Effective Date of this Resolution, all policies or provisions
previously adopted by the Town that are inconsistent with the Policy adopted as "Exhibit
A" are hereby repealed to the extent of such inconsistency.
Section 5. All expenditures from the Emergency & Risk Stabilization Fund shall
be made in accordance with the Policy and applicable Town purchasing and financial
procedures, and shall require Town Council appropriation except as otherwise authorized
for emergency actions subject to subsequent ratification.
Section 6. This Resolution shall take effect immediately upon its passage and
approval.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas, on this 27th day of April 2026.
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APPROVED TO AS FORM:
Dean ggi T orney
RESOLUTION NO. 2026-09 PAGE 3
EXHIBIT "A"
EMERGENCY & RISK STABILIZATION FUND UTILIZATION POLICY
TOWN OF
TROPHY CLUB
Emergency & Risk Stabilization Fund Utilization Policy
Policy Number TM-303
Implementation Date: April 27, 2026
Last Revised Date:
Policy Contact: Director of Finance
Council Resolution Number 2026-09
1. Statement of Purpose
To establish guidelines and parameters for the use of Emergency & Risk Stabilization Fund
including (1) the immediate response to unforeseen emergencies affecting capital
infrastructure and/or Town operations; and (2) financial stabilization for significant,
unanticipated liability-related expenditures. Emergency & Risk Stabilization Fund may be
authorized where delays would likely result in increased risk, damage, or cost to the Town.
2. Authority
The Town Manager is authorized to review and recommend expenditures from the
Emergency & Risk Stabilization Fund for qualifying emergency situations, as described in this
policy. All appropriations for expenditures from the Emergency & Risk Stabilization Fund
require approval by the Town Council, in accordance with the Town's purchasing and
financial policies. In situations requiring immediate action to protect life, safety, or property,
the Town Manager is authorized to approve emergency purchases as outlined in the Town's
Purchasing Policy & Procedure Manual. All such emergency expenditures shall be presented
to the Town Council for ratification and formal appropriation at the next available meeting.
3. Definitions
• Emergency: An unanticipated event or condition that requires immediate attention to
prevent or mitigate danger to public health, safety, property, liability, or essential Town
services or to prevent financial or other loss.
4. Allowable Expenses
Emergency & Risk Stabilization Fund may be used for:
• Costs for the immediate repair or replacement of critical infrastructure arising from
damage or to reduce or prevent imminent liability (e.g., roads, facilities, sidewalks).
• Costs associated with Emergency response measures involving capital assets (e.g.,
structural stabilization, protective barriers).
• Costs associated with engineering or professional services necessary to assess and
resolve damage caused by an Emergency.
• Costs to purchase equipment or materials procured solely to mitigate the Emergency.
• Payment of liability-related expenditures, including Workers' Compensation claims,
properly claims, or the loss of anticipated insurance discounts when such costs exceed
budgeted assumptions and are approved by the Town Council. Routine or recurring
liability-related expenses that can be reasonably budgeted shall not be eligible for
Emergency & Risk Stabilization Fund use.
• Personnel costs directly related to providing and continuing municipal operations in the
event of an Emergency.
• Costs associated with securing, leasing, or acquiring temporary facilities or land to
respond to an Emergency.
• Costs associated with removing trash and debris caused by an Emergency.
• Other costs directly related to the Emergency and consistent with the intent of this
policy.
5. Ineligible Expenses
• Routine maintenance or preventive repairs.
• Planned or scheduled improvements already included in the CIP.
• Expenses that can be addressed through operating budget reallocations.
• Personnel costs not directly related to responding to an Emergency.
6. Procedures for Appropriations
• The requesting department must notify the Town Manager in writing outlining:
o Nature of the Emergency
o Justification for use of the Emergency & Risk Stabilization Fund
o Estimated cost
• The Town Manager will review the request and may recommend approval to the Town
Council after reviewing available reserves in the Emergency & Risk Stabilization Fund,
if the request meets the conditions outlined in this policy.
Emergency & Risk Stabilization Fund Policy
Approved: April 27, 2026 Page 2 of 3
• All appropriations from the Emergency & Risk Stabilization Fund must be approved by
the Town Council prior to expenditure, in accordance with this policy and applicable
purchasing requirements.
• Proper documentation must be maintained for audit purposes.
7. Target Balance Requirements
The Emergency & Risk Stabilization Fund shall maintain between 2.5% and 5.0% of General
Fund expenditures in reserve. Funds shall be replenished by the Town Council through the
annual budget process, as needed.
8. Reporting
For any year in which Emergency & Risk Stabilization Funds are allocated, an annual report
summarizing the use of Emergency & Risk Stabilization Fund including the nature of
emergencies, amounts spent, remaining balance, anticipated reimbursements, and
resolution outcomes shall be submitted as part of the Town's financial reporting process.
Emergency & Risk Stabilization Fund Policy
Approved: April 27, 2026 Page 3 of 3