HomeMy WebLinkAbout1992 03-12 FTFAi MEETING NOTICE
FINANCIAL TASK FORCE
THURSDAY, MARCH 12, 1992
7 P.M.
C BARN - EARLE BROWN HERITAGE CENTER
1. Fire Department Report
2. Financial Policies Discussion
3. Council Referral/Hockey Program Funding Request
ENCLOSURES: Minutes of February 27, 1992, meeting
Fire Department Information
Financial Policies
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(CCCFP4) FINANCIAL POLICIES ON RESERVES SCHEDULE D
STAFF RECOMMENDATION
February 13, 1992
D. RESERVE POLICIES
1. The City will maintain an undesignated and unreserved General Fund balance in an
amount determined by applying the Adequate General Fund Balance Policy Formula
as established by the City Council. The formula shall be reviewed annually by the
City Council. The formula shall be designed to establish a fund balance at a level
which is sufficient to avoid issuing debt to meet current operating needs.
2. If the City Council deems it appropriate to reduce fund balances for the portion
above the formula amount, such reductions shall not exceed 50% of the excess for
one year.
3. In the event that there is a shortfall of revenues in a current year budget, the
City Manager may recommend the use of a portion of the General Fund balance not,to
exceed the amount available after deducting amounts reserved for items not readily
convertible to cash or reserved for working capital as shown on the most recent
Adequate General Fund Balance Policy Formula as established by the City Council.
H. Operating Budget Policies
l. In accordance with Chapter 7, Section 7.06 of the City Charter, the total sum
appropriated in the General Fund annual budget shall be equal to the total
estimated General Fund revenue and the allocated General Fund balance.
2. The City will annually appropriate a contingency appropriation in the General Fund
budget, not to exceed five percent of the total budget, to provide for unanticipated
expenditures of a non-recurring nature.
3. The City Manager, when submitting the Proposed Budget for the next year to the City
Council, shall not recommend the use of fund balance in an amount which would exceed
the estimate of revenue over expenditures for the current budget year.
4. Prior to adopting the General Fund Annual Budget, the City Council shall review the
Adequate General Fund Balance Policy Formula.
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(QRP3960A) R19
CITY OF BROOKLYN CENTER
ADEQUATE GENERAL FUND BALANCE POLICY FORMULA
AS ESTABLISHED BY THE CITY COUNCIL ON DECEMBER 22, 1980
(AS SET FORTH IN M&C NO. 80-31 AND AMENDED FEBRUARY 26, 1990)
1. Latest Audited Total Fund Balance
At: December 31, 1990
$
5,210,026
2.
Less Items Not Readily Convertible to Cash:
a. Uncollected Taxes $
187,271
b. Accounts Receivable
55,414
c. Advances to Other Funds
105,074
347,759
3.
Fund Balance Convertible to Cash
$
4,862,267
4.
Less Amounts to be Reserved for Working Capital:
.
(40% of Total General Fund Current Year Budget)
Year: 1991 40% of: $ 11,026,940
=
4,410,776
5.
Amount Available After Deduction for Working Capital
$
451,491
6.
Less Amounts to be Reserved for Other Purposes:
a. Reserve for Delinquent Taxes:
(5% of Taxes Levied for General Fund in Current Year
Budget)
Year: 1991 5% of: $ 4,949,771
247,489
b. Reserve for Overestimation of Other Revenues:
(10% of General Fund Other Revenues in Current Year
Budget)
Year: 1991 10% of: $ 6,077,169
607,717
855,205
7.
Amount Available per Formula
$
(403,714)
8.
Less Amount Appropriated to the General Fund Current
Year Budget:
Year: 1991
---(312,358)
9.
Amount Available for Other Use
$
(716,072)
(QRP3960A) Exhibit I
CITY OF BROOKLYN CENTER
ADEQUATE GENERAL FUND BALANCE POLICY FORMULA
AS ESTABLISHED BY THE CITY COUNCIL ON DECEMBER 22, 1980
(AS SET FORTH IN M&C NO. 80-31 AND AMENDED FEBRUARY 26, 1990)
1. Latest Audited Total Fund Balance
At: December 31, 19_ $
2. Less Items Not Readily Convertible to Cash:
a. Uncollected Taxes $
b. Accounts Receivable
c. Advances to Other Funds 0
3. Fund Balance Convertible to Cash 0
4. Less Amounts to be Reserved for Working Capital:
(40% of Total General Fund Current Year Budget)
Year: 19 40% of. S =
5. Amount Available After Deduction for Working Capital $
6. Less Amounts to be Reserved for Other Purposes:
a. Reserve for Deliquent Taxes
(5% of Taxes Levied for General Fund in Current Year Budget)
Year: 19 5% of, $
b. Reserve for Overestimation of Other Revenues
(10% of General Fund Other Revenues in Current Year Budget)
Year: 19 10% of. $
7. Amount Available per Formula $
8. Less Amount Appropriated to the General Fund Current
Year Budget
Year: 19
• 9. Amount Available for Other Use $
February 13, 1992
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• (CCCFP5) FINANCIAL POLICIES ON DEBT
STAFF RECOMMENDATION
February 13, 1992
C. DEBT POLICIES
I. The City will require Minimum Assessment (Taxable Valuation) Agreements on all
projects in which the City is providing development assistance through tax
increment financing or committing its bonding authority. This will ensure
minimal cash flow (increment) to repay obligations, provide another level of
review before commitment (by the City Assessor), and to the minimal value agreed
upon, eliminate tax appeals during the agreement period.
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