Resolution - #24-331 - 11/26/2024

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Councilmember Musgrove introduced the following resolution and moved for its adoption: RESOLUTION #24-331 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, this policy was further amended by Resolution #10-04-082 adopted April 13, 2010; and WHEREAS, this policy was further amended by Resolution #11-11-217 adopted November 7, 2011; and WHEREAS, this policy was further amended by Resolution #16-05-089 adopted May 10, 2016; 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 35-50% 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 (less transfers in) and, prior-year encumbrances (if any); and WHEREAS, the city’s special revenue funds will not be figured into the calculation of the overall fund balance total as these funds have special designated purposes; 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 Director is hereby directed to implement the following Financial Policy for the Purpose of Allocation of Excess/Deficient General Fund Revenues: When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed.