HomeMy WebLinkAbout1998-048 CCR1
Member Robert Peppe introduced the following resolution and moved its
adoption:
RESOLUTION NO. 98-48
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, and 1995; and
WHEREAS, the Financial Commission is recommending that the Adequate General
Fund Balance Formula again be amended to adjust to the City's new budget format and to simplify
it and make it easier to understand.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center to amend the Adequate General Fund Balance Formula as follows:
1. The formula is amended to eliminated intermediate calculations of available
balances and to combine calculations against the current budget into a single line.
2. The formula is amended to display the calculation of the minimum required fund
balance and show the calculation of the one half of the excess balance which may
be appropriated in a given year.
3. The formula is amended so that the debt service tax levy is excluded from the
calculation of 45 % of the current year's budget.
March 23, 1998
Date
ATTEST:
City Clerk
Mayor
RESOLUTION NO. 98-48
The motion for the adoption of the foregoing resolution was duly seconded by member
Kathleen Carmody , and upon vote being taken thereon, the following voted in favor thereof:
Myrna Kragness, Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe;
and the following voted against the same: none
whereupon said resolution was declared duly passed and adopted.
1
RESOLUTION NO. 98-48
CITY OF BROOKLYN CENTER
ADEQUATE GENERAL FUND BALANCE POLICY FORMULA
AS ESTABLISHED BY THE CITY COUNCIL ON DECEMBER 22, 1980
(AMENDED FEBRUARY 26, 1990, JUNE 8, 1992, AND MAY 22, 1995)
Revised for removal of debt service pronertv taxes from workine capital
Latest Audited Total Fund Balance
at December 31, 1997 estimated
Minimum Required Fund Balance Elements:
1. Items Not Readily Convertible to Cash:
a. Accounts Receivable
b. Advances to Other Funds
2. Amount Appropriated to the General Fund Current
Year Budget: 1998
3. Amounts to be Reserved for Working Capital and Variances from
Revenue Estimates:
(45% of Total General Fund Current Year Budget) less debt service)
45% of: $12,145,336 =
Minimum Required Fund Balance
Amount in Excess of Minimum Required Fund Balance
Amount Available per Formula for Other Use in Current Year
2
$6,600,000
17,911
105,074
$122,985
$2,712
$5,465,401
$5,591,098
$1,008,902
$504,451
ADQFDBAL•M-S 1997R 3/16/98 4:15 PM