Laserfiche WebLink
411 <br /> �S EN HILLS <br /> MEMORANDUM <br /> DATE: October 5, 2007 <br /> TO: Financial Planning and Analysis Committee <br /> FROM: Sue Iverson, Finance Director <br /> SUBJECT: Fund Balance Policy Discussions <br /> BACKGROUND: <br /> One of the priorities that the Council has assigned to this committee is to work on a Fund <br /> Balance Policy. At the August 14, 2007 meeting we began these discussions. We looked at the <br /> reasons and objectives for such a policy and discussed factors that we wanted to consider in <br /> developing our policy. We also looked at what information we would need in order to make <br /> these decisions. <br /> DISCUSSION: <br /> In looking back at our previous discussions and what needs to be accomplished, we need to draft <br /> a general fund balance policy. Once we have done this we can begin to work on the next <br /> Council directive of determining the appropriate balance in the Capital Improvement Fund (PIR) <br /> and then work on policies to determine 1)How financial resources are to be set aside for <br /> unreserved fund balances, 2)Determine the appropriate size of unreserved fund balances, and 3) <br /> Methods for utilizing unreserved fund balance resources. This will involve looking at the <br /> finalized CIP, long-range financial plan, and other data which is not available yet. <br /> I have attached a"draft" fund balance policy with highlighted areas that will need discussion. I <br /> have also included sample copies from surrounding communities. This should help us to achieve <br /> our objective of recommending a"general" fund balance policy, which we can present to the <br /> City Council at the November 19, 2007 work session. We will have one more meeting before <br /> that work session in order to complete this policy. <br /> RECOMMENDED ACTION: <br /> Provide feedback and discussion on draft fund balance policy. <br /> al <br />