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DRAFT <br /> <br /> <br />Attachment A <br /> <br /> <br />CITY OF ARDEN HILLS <br />COUNTY OF RAMSEY <br />STATE OF MINNESOTA <br /> <br />FINANCIAL POLICIES- <br />FUND BALANCE <br />(Revised 4/28/14) <br /> <br /> <br />Fund Balance and Net Asset Guidelines (Fiscal Year-End) <br /> <br />Purpose <br /> <br />The purpose of the fund balance policies is to establish appropriate fund balance levels for each fund that <br />is primarily supported by property tax revenues or user fees. These policies will ensure that adequate <br />resources are available to meet cash flow needs for carrying out the regular operations of the City, as well <br />The funds that will be addressed in this policy are: General Fund, Cable Fund, EDA Funds, Equipment, <br />Building & Replacement Fund, Parks Fund, Public Safety Capital Fund, Permanent Improvement <br />Revolving Fund (PIR), Risk Management Fund, and Enterprise Funds. <br /> <br />Primary Policy Considerations <br /> <br />1. To meet the cash flow requirements of the City. <br />2. To maintain adequate fund balances and net assets in each individual fund of the City. <br />3. To provide for emergencies and contingency needs of the City. <br /> <br />Policy Statements <br /> <br />1. The Finance Director as a part of the annual budget process shall prepare an analysis of this <br />policy. The analysis shall project the status of the budget year ending fund balances and net <br />assets. <br /> <br />2. The City Council authorizes the Finance Director and/or City Administrator to assign fund <br />nds. When both restricted and unrestricted <br />unrestricted resources as they are needed. When unrestricted resources are available for use, it is <br />the Ci <br />unassigned. These fund balance classifications apply only to Governmental Funds, not Enterprise <br />or Internal Service Funds. <br /> <br />st <br />3. The General Fund balance shall be assigned as of December 31 for the following purposes in the <br />amounts described below: <br /> <br />a. The City will strive to maintain an unassigned balance in the General Fund of 50% of the <br /> (this reserve includes the designation for <br />cash flows). Since a significant source of revenue in the General Fund comes from <br />property taxes, maintaining a fund balance that is equal to at least six months of operating <br /> <br />Revised 04/28/2014 <br />