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RESOLUTION #11- 10 -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 <br />October 26, 2004; and <br />WHEREAS, this policy was further amended by Resolution #10 -04 -082 adopted April <br />13, 2010; 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 Director is hereby directed to implement the following Financial <br />Policy for the Purpose of Allocation of Excess /Deficient General Fund Revenues: <br />When both restricted and unrestricted resources are available for use, it is the <br />City's policy to first use restricted resources, and then use unrestricted resources as <br />they are needed. <br />When committed, assigned, or unassigned resources are available for use, it is the <br />City's policy to use resources in the following order; 1) committed, 2) assigned, and <br />3) unassigned. <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 "Assigned" fund balance to bring that <br />portion of fund balance to an amount equal to fifty percent (50 %) of the next <br />years adopted operating budget plus prior -year encumbrances (if any) plus <br />Resolution #11 -10 -XXXX <br />Page 2 of 2 <br />