Agenda - Council - 05/08/2001 - Laserfiche WebLink

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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. b) "Unreserved - undesignated" fund balance shall be brought to an amount equal to ten percent (10 %) of the next years adopted operating budget by transferring in monies equal to the deficit from revolving and replacement funds in the following manner: Ten percent (10 %) from Fund #810 - Equipment Replacement Fund Forty percent (40 %) from Fund #412 - Capital Building Fund Fifty percent (50 %) from Fund #400 - Permanent Improvement Revolving Fund -140-