5E, Fund Balance Policy - Laserfiche WebLink

Home Browse Search

EN MILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA FINANCIAL POLICIES- FUND BALANCE Fund Balance and Net Asset Guidelines(Fiscal Year-End) Purpose The pur-pose of this peliey is te establish guidelines feF the City of Ar-den.Nills' eempenefvts of fimd balanees .The purpose of the fund balance policies is to establish appropriate fund balance levels for each fund that is primarily supported by property tax revenues or user fees. These policies will ensure that adequate resources are available to meet cash flow needs for carrying out the regular operations of the City, as well as to meet the fund balance requirements identified in the City's Long Range Financial Management Plan The funds that will be addressed in this policy are: General Fund Cable Fund EDA Funds Equipment Building&Replacement Fund Parks Fund Public Safetv Capital Fund Permanent Improvement Revolving Fund Fund(PIR) Risk Management Fund and Enterprise Funds. Primary Policy Considerations 1. To meet the cash flow requirements of the City. 2. To maintain adequate fund balances and net assets in each individual fund of the City. 3. To provide for emergencies and contingency needs of the City. Policy Statements 1. The Finance Director as a part of the annual budget process shall prepare an analysis of this policy. The analysis shall project the status of the budget year ending fund balances and net assets. 2. The Finanee Pir-eeter-shall as a paA of the annual audit and year- end finaneial statemen The desigflations established through this pelie),shall be used in designating funds for-the year- a finaneial statement pttr- eyes The City Council authorizes the Director of Finance and PJVJ Administrative Services and/or City Administrator to assign fund balance that reflects the City's intended use of those funds. 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 When unrestricted resources are available for use it is the City's polity to use resources in the following order; 1)committed assi nom, ed. 3)unassigned. These fund balance classifications apply only to Governmental Funds not Enterprise Funds. P•\Admin\Council\A¢endas&Packet Informatidn\2011.\11-28-11 ReizularTacket Information\Fund Balance Policy-201 1.doc AF 1° 1 and P eduf s\,Pe ieies\FU Vl Last pf-i 4ed 11/10,120112!3 1 PMAdopted 11/28/2011 . 1 t lv