HomeMy WebLinkAbout1999-021 CCRMember Ed Nelson introduced the following resolution and moved its
adoption:
RESOLUTION NO. 99-21
RESOLUTION AMENDING THE ADEQUATE GENERAL FUND BALANCE
FORMULA IN THE FINANCIAL MANAGEMENT POLICIES
WHEREAS, the City Council established an Adequate General Fund Balance
Formula on December 22, 1980 and incorporated it into the Financial Management Policies on
June 8, 1992; and
WHEREAS, it has been necessary to adapt to changing conditions over the years
by amending the Formula in 1990, 1992, 1995, and 1998; and
WHEREAS, the Financial Commission is recommending that the Adequate General
Fund Balance Formula again be amended to compensate for a new financial reporting format; and
WHEREAS, this amendment is needed so that the fund balance used in the formula
will reflect spendable resources.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center to amend the Adequate General Fund Balance Formula to adjust the latest fund
balance to subtract out unrealized gains or add back unrealized losses on investments.
Januarv 25. 19996L-sfitc.~-~
Date o Mayo
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
Robert Peppe , and upon vote being taken thereon, the following voted in favor thereof:
Myrna Kragness, Debra Hilstrom, Kay Tasman, Ed Nelson, and Robert Peppe;
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
RESOLUTION NO. 99-21
CITY OF BROOKLYN CENTER
ADEQUATE GENERAL FUND BALANCE POLICY FORMULA
AS ESTABLISHED BY THE CITY COUNCIL ON DECEMBER 22, 1980
Revised to reverse the effect of reporting for unrealized gains or losses on investments
Latest Audited Total Fund Balance at December 31, 1997 $6,721,780
Unrealized Gains or Losses (subtract gains or add back losses) (120,000)
Adjusted Total Fund Balance at December 31, 1997 $6,6012780
Minimum Required Fund Balance Elements:
1. Items Not Readily Convertible to Cush:
a. Accounts Receivable 51,154
b. Advances to Other Funds 105,074
$156,228
2. Amount Appropriated to the General Fund Current
Year Budget: 1998 $21712
3. Amounts to be Reserved for Working Capital and Variances from
Revenue Estimates:
(45% o of Total General Fund Current Year Budget, less debt service)
45% of: $12,145,336 = $5,465,401
Minimum Required Fund Balance $5,624,341
Amount in Excess of Minimum Required Fund Balance $977,439
Amount Available per Formula for Other Use in Current Year $488,719
ADQFDBAL.XLS 1997(2) 1/8/99 1:08 PM