Resolution - #10-04-082 - 04/13/2010

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Councilmember Look introduced the following resolution and moved for its adoption: RESOLUTION #10 -04 -082 RESOLUTION ESTABLISHING A FINANCIAL POLICY FOR PURPOSE OF ALLOCATION OF EXCESS/DEFICIENT GENERAL FUND REVENUES WHEREAS, this is an amendment to the policy adopted February 22, 1994 under Resolution #94 -02 -045; and WHEREAS, this policy was further amended by Resolution #04 -10 -320 adopted October 26, 2004; and WHEREAS, actual revenues can be over or under actual expenditures at the end of the fiscal year; and WHEREAS, the State Auditor recommends a fund balance of 35 -30% of next year's operating expenditures; and WHEREAS, the city's policy will have the fund balance at 50% of next year's operating expenditures, plus prior -year encumbrances (if any) plus compensated absences; and WHEREAS, the city's special revenue funds will into be figured into the calculation of the overall fund balance total as these funds have special designated purposes; and WHEREAS, there exists a need for additional funding sources for certain revolving, trust and replacement funds. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: 1) That the Finance Officer is hereby directed to implement the following Financial Policy for the Purpose of Allocation of Excess/Deficient General Fund Revenues: When actual revenues exceed actual expenditures in a given year, the excess shall be allocated as follows: a) Any excess shall be first allocated to "unreserved- designated" fund balance to bring the portion of fund balance to an amount equal to fifty percent (50 %) of the next years adopted operating budget plus prior -year encumbrances (if any) plus compensated absences. b) Any excess after complying with fund balance requirements in steps a) and b) shall be allocated to revolving, trust and replacement funds in the following manner