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Councilmember introduced the following resolution and moved for its adoption: <br />RESOLUTION #10-04-XXX <br />RESOLUTION ESTABLISHING A FINANCIAL POLICY FOR PURPOSE OF <br />ALLOCATION OF EXCESS/DEFICIENT GENERAL FUND REVENUES <br />WHEREAS, this is an amendment to the policy adopted February 22, 1994 under <br />Resolution #94-02-045; and <br />WHEREAS, this policy was further amended by Resolution #04-10-320 adopted October <br />26, 2004; and <br />WHEREAS, actual revenues can be over or under actual expenditures at the end of the <br />fiscal year; and <br />WHEREAS, the State Auditor recommends a fund balance of 35-50% of next year's <br />operating expenditures; and <br />WHEREAS, the city's policy will have the fund balance at 50% of next year's operating <br />expenditures, plus prior-year encumbrances (if any) plus compensated absences; and <br />WHEREAS, the city's special revenue funds will not be figured into the calculation of <br />the overall fund balance total as these funds have special designated purposes; <br />WHEREAS, there exists a need for additional funding sources for certain revolving, trust <br />and replacement funds. <br />NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: <br />1) That the Finance Officer is hereby directed to implement the following Financial Policy <br />for the Purpose of Allocation of Excess/Deficient General Fund Revenues: <br />When actual revenues exceed actual expenditures in a given year, the excess shall be <br />allocated as follows: <br />a) Any excess shall be first allocated to "unreserved-designated" fund balance to <br />bring that portion of fund balance to an amount equal to fifty percent (50%) of the <br />next years adopted operating budget plus prior-year encumbrances (if any) plus <br />compensated absences. <br />b) Any excess after complying with fund balance requirements in steps a) and b) shall be <br />allocated to revolving, trust and replacement funds in the following manner: <br />Ten percent (10%) to Fund #810 -Park Trust Fund <br />Ten percent (10%) to Fund #234 -Equipment Replacement Fund <br />Forty percent (40%) to Fund #412 -Public Facilities Construction Fund <br />Forty percent (40%) to Fund #400 -Public Improvement Revolving Fund <br />Resolution #10-04-XXX <br />Page 2 of 2 <br />