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FC I <br /> <br />AMENDMENT TO FINANCIAL POLICY FOR PURPOSE OF ALLOCATION <br />OF EXCESS/DEFICIT GENERAL FUND REVENUES <br /> By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />In 1994, Resolution #94-02-045 was created to establish a financial policy for the <br />purpose of the allocation of the excess/deficient General Fund Revenues remaining at <br />year end. <br /> <br />The policy takes in{o consideration that the General Fund fund balance is to be an amount <br />equal to 60% of the next years adopted General Fund Budget. If there are funds <br />remaining, or a deficit exists, the following City Funds would share the allocation. The' <br />fi_mds and their respective share are as such: <br /> Equipment Replacement Fund - 10% of excess/deficit <br /> Public Facilities Construction Fund - 40% of excess/deficit <br /> Public Improvement Revolving Fund - 50% of excess/deficit <br /> <br />For year ending 2003, the City had an excess revenue amount of $650,985.94 after the <br />General Fund fund balance had an amount equal to 60% of next years adopted budget. <br />Based on the 1994 excess revenue policy the funds would have been distributed as such: <br /> <br />Equipment Replacement Fund - $65,098.59 <br />Public Facilities Construction Fund - $260,394.38 <br />Public Improvement Revolving Fund - $325,492.97 <br /> <br />The distribution of the excess revenues was brought to City Council during its regular <br />meeting of April 27, 2004, and it was during this meeting that Council made the motion <br />to distribute the excess revenues in the following manner to reflect current funding needs <br />of the City. <br /> <br />Equipment Replacement Fund - $65,098.59 (Transfer to Future Park <br /> Fund) <br />Public Facilities Construction Fund - $485,887.35 (City Hall) <br />Public Improvement Revolving Fund - $100,000(Park & Ride) <br /> <br />The Park Trust Fund was adopted on September 13, 2004. The transfer of the $65,098.59 <br />from the Equipment Replacement Fund to the Park Trust Fund is included in the Consent <br />agenda of tonight's (Oct 26) meeting. <br /> <br />When the Park Trust Fund was created, it listed a revenue source as that of an amount <br />equal to 10% of the excess revenues transferred from the General Fund at year end. <br /> <br /> <br />