4.7. SR 04-07-2014 - Laserfiche WebLink

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B. General Fund • The city will maintain an unassigned General fund balance of not less than 40-45% of budgeted operating expenditures;however,this need could fluctuate with each year's budget objectives. • Annual proposed General fund budgets shall include this benchmark policy. Council shall review the amounts in fund balance in conjunction with the annual budget approval, and make adjustments as necessary to meet expected cash-flow needs. • In the event the unassigned General fund balance will be calculated to be less than the minimum requirement at the completion of any fiscal year, the city shall plan to adjust budget resources in the subsequent fiscal years to bring the fund balance into compliance with this policy. • The City Council may consider appropriating (for authorized purposes) year-end fund balance in excess of the policy level or increasing the minimum fund balance.An example of preferred use of excess fund balance would be for one-time expenditures, such as: 1. to fund an expenditure of significant long-term benefit or legacy to the community 2. to fund a one-time (non-recurring) expenditure or grant match opportunity 3. to provide catch-up funding or long-term obligations not previously recognized 4. to fund a one-time unplanned revenue shortfall 5. to fund an unplanned expenditure due to an emergency or disaster 6. to retire existing debt 7. to fund policy shifts by other governmental entities having a negative impact on the city 8. to moderate property taxes • Appropriation from the minimum fund balance shall require the approval of the City Council and shall be used only for non-recurring expenditures,unforeseen emergencies or immediate capital needs that cannot be accommodated through current year savings. Replenishment recommendations will accompany the decision to utilize fund balance. • At the discretion of the City Council, fund balance may be committed for specific purposes by resolution designating the specific use of fund balance and the amount. The resolution would need to be approved no later than the close of the reporting period and will remain binding unless removed in the same manner. • The City Council authorizes the Finance Director and/or City Administrator to assign fund balance that reflects the city's intended use of those funds. • When both restricted and unrestricted resources are available for use,it is the city's policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use,it is the city's policy to use resources in the following order; 1) committed 2) assigned and 3) unassigned. Financial Management Policies Page 8