Laserfiche WebLink
RESOLUTION NO. 20-017 <br />A RESOLUTION AMENDING THE FUND BALANCE POLICY <br />WHEREAS, City Council has reviewed its fund balance policy language; and <br />WHEREAS, the specific language of the policy does not meet City Council practice; and <br />WHEREAS, it is desirable to change the policy to match with the more conservative effect of <br />the current practice; and <br />WHEREAS, the City Council wishes to maintain a significant General fund unassigned fund <br />balance for purposes of offsetting any significant revenue decreases, maintaining a reserve for <br />any natural disasters or unanticipated calamity, and providing sufficient cash flow to avoid short <br />term borrowing; <br />NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />CENTERVILLE, ANOKA COUNTY, STATE OF MINNESOTA: <br />PURPwOSE <br />The purpose of this policy is to establish specific guidelines the City of Centerville will use <br />to maintain an adequate level of fund balance to provide for cash flow requirements and <br />contingency needs because major revenues, including property taxes and other government <br />aids are received in the second half of the City's fiscal year. <br />The purpose of this policy is to also establish specific guidelines the City of Centerville <br />will use to classify fund balances into a categories based primarily on the extent to which <br />the City is bound to honor constraints on the specific purposes for which amounts in these <br />funds can be spent. <br />I1. CLASSIFICATION OF FUND BALANCE/PROCEDURES <br />1. Nonspendable <br />• This category includes fund balance that cannot be spent because it is either (i) <br />not in spendable form or (ii) is legally or contractually required to be maintained <br />intact. Examples include inventories and prepaid amounts. <br />2. Restricted <br />• Fund balance should be reported as restricted when constraints placed on those <br />resources are either (i) externally imposed by creditors, grantors, contributors, <br />or laws or regulations of other governments or (ii) imposed by law through <br />constitutional provisions or enabling legislation. <br />