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