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Councilmember introduced the following resolution and moved for its adoption: <br />RESOLUTION #16-05-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, this policy was further amended by Resolution #10-04-082 adopted April 13, <br />2010; and <br />WHEREAS, this policy was further amended by Resolution #11-11-217 adopted <br />November 7, 2011; 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 the <br />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 Policy <br />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 City's <br />policy to first use restricted resources, and then use unrestricted resources as they are <br />needed. <br />When committed, assigned, or unassigned resources are available for use, it is the City's <br />policy to use resources in the following order; 1) committed, 2) assigned, and 3) <br />unassigned. <br />When actual revenues exceed actual expenditures in a given year, the excess shall be <br />allocated as follows: <br />