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r2kRZE.IIIILLS <br /> CITY OF ARDEN HILLS <br /> COUNTY OF RAMSEY <br /> STATE OF MINNESOTA <br /> FINANCIAL POLICIES- <br /> FUND BALANCE <br /> Fund Balance and Net Asset Guidelines(Fiscal Year-End) <br /> Purpose <br /> 1nnee�a ' _t a et .The purpose of the fund balance policies is to establish appropriate fund balance <br /> levels for each fund that is primarily supported by property tax revenues or user fees. These policies will <br /> ensure that adequate resources are available to meet cash flow needs for carrying out the regular <br /> operations of the City, as well as to meet the fund balance requirements identified in the City's Long <br /> Range Financial Management Plan. The fiords that will be addressed in this policy are: General Fund, <br /> Cable Fund,EDA Funds,Equipment,Building&Replacement Fund, Parks Fund,Public Safety Capital <br /> Fund,Permanent Improvement Revolving Fund IP1RD, Risk Management Fund,and Enterprise Funds. <br /> Primary Policy Considerations <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 /> Policy Statements <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 /> 2. <br /> The City Council authorizes the Director of Finance and <br /> Administrative Services and/or City Administrator to assign fund balance that reflects the City's <br /> intended use of those funds. When both restricted and unrestricted resources are available for <br /> use, it is the City's policy to first use restricted resources,and then use unrestricted resources as <br /> they are needed. When unrestricted resources are available for use, it is the City's polity to use <br /> resources in the following order; 1)committed,2)assigned,3J.unassigned. These fund balance <br /> classifications apply only to Governmental Funds,not Enterprise Funds. <br /> 3. The General Fund balance shall be designated assigned as of December 31St for the following <br /> purposes in the amounts described below: <br /> 411/ P:\Finance\Policies and Proceduresll'olicies\Funll Balance Policy-2011.docP:\Finance\Policies <br /> r ast minted > > /10rAdopted 11/28/2011 <br />