12-13-2011 Agenda - Laserfiche WebLink

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a. The City will strive to maintain an unassigned balance in the General Fund general fund • reserve of 50%of the general fund's total annual operating budget(this reserve includes the designation for cash flows). This t t a Cit> i adequate funds_ Since a significant source of revenue in the General Fund comes from property taxes, maintaining a fund balance that is equal to at least six months of operating expenditures ensures that sufficient resources are available to fund basic City functions between property tax settlements. This range is in conformance with guidance from the Office of the State Auditor(OSA). Amounts that exceed 50%may be transferred out to other funds. An assignment or restriction of fund balance may be used to offset revenues earned in one year where substantial services are required to be performed in the next fiscal period. b. The City will maintain an amount sufficient to cover accumulated vacation and compensatory time balances and that portion of PTO leave that would be payable under the City's severance pay policy or union contracts. This amount shall be adjusted annually as part of the year-end close and annual fmancial report process. c. For specific purposes as authorized by the City Council or the City's intended use of the funds. Funds shall be designated-assigned first for compensated absences,second for cash flow needs and lastly for emergencies/contingencies. .n b r d f , fund determined b ,the City r, cil. Such transfer; t to • Council ., ,al 4. The Cable Fund is a Special Revenue Funds,or Capital Project Fundsthat provides for cable and communication related expenses to disseminate information to the public. It receives the majority of its funding from franchise fees which are restricted for this use. 5. The City will strive to maintain a fund balance in the Cable Fund in an amount sufficient to support the ongoing operating expenditures and capital expenditures planned in the CIP and in congruence with the Long Range Financial Management Plan. east d + t 1 lI bli + d .•n b d s; ated_ cc-r�.€,-m�rj-vvnginccc'd�i:r oc'ov�,��.......... 5. EDA Funds are Special Revenue Funds that carryout economic and industrial development and redevelopment consistent with policies established by the City Council. It receives the majority of its funding from specific taxes or other earmarked revenue sources. The City will strive to maintain fund balances in the EDA Funds in an amount sufficient to support the ongoing expenditures,obligations and in congruence with the Long Range Financial Management Plan. Revenues not legally restricted will be committed. 6. Fund balances in Debt Service Funds for future debt payments will be designatedare restricted. 7. Capital Funds are used to account for the financing of street rehabilitations projects.equipment replacement,public safety equipment, and facility rehabilitation or renovation. Revenue sources are provided mainly through property taxes,special assessments,Park dedication fees,and P:\Finance\Policies and Procedures\Policies\Funll Balance Policy-2011.docP:\FinanceWolicies Lastr ed ' 0/2011 2:31 P p Adopted 11/28/2011