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Councilmember Peterson introduced the following resolution and moved for its adoption: RESOLUTION #94-02-045 RESOLUTION ESTABLISHING A FINANCIAL POLICY FOR PURPOSE OF ALLOCATION OF EXCESS/DEFICIENT GENERAL FUND REVENUES WHEREAS, the City of Ramsey utilizes zero balance budgeting for the General Fund where budgeted revenues are equal to budgeted expenditures; and WHEREAS, actual revenues can be over or under actual expenditures at the end of the fiscal year; and WHEREAS, the City of Ramsey currently has a fund balance policy in place for the undesignated-reserved portion of the General Fund fund balance; and WHEREAS, there exists a need for additional funding sources for certain revolving 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 that portion of fund balance to an amount equal to fifty percent (50%) of the next years adopted operating budget per policy adopted in Resolution #93-04-061. b) Any excess after complying with step one shall be allocated to "unreserved- undesignated" fund balance to bring that portion of fund balance to an amount equal to ten percent (10%) of the next years adopted operating budget. c) Any excess after complying with fund balance requirements in steps a) and b) shall be allocated to revolving and replacement funds in the following manner: Ten percent (10%) to Fund #810 - Equipment Replacement Fund Forty percent (40%) to Fund #412 - Capital Building Fund Fifty percent (50%) to Fund #400 - Permanent Improvement Revolving Fund When actual expenditures exceed actual revenues in a given year, the deficit shall be treated as follows: a) "Unreserved-designated" fund balance shall first be adjusted to an amount equal to fifty percent (50%) of the next years adopted operating budget per policy adopted in Resolution #93-04-061 by utilizing amounts in the "unreserved- undesignated" portion of fund balance.