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HomeMy WebLinkAbout2004-189 CCRMember Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION NO. 2004-189 RESOLUTION AMENDING GENERAL FUND BALANCE POLICY WHEREAS, the Financial Commission has reviewed the City's General Fund Policies, specifically Section 2.3 of the Financial Management Policies Section D. Reserve Policies 1. and 2; and WHEREAS, the City has previously had a target fund balance of 45 percent of the General Fund at the end of the year for cash flow purposes; and WHEREAS, City staff has recommended for the Financial Commission's consideration an increase in that reserve target from 45 percent to between 50 and 52 percent of the General Fund; and WHEREAS, it has also been recommended that the adequate General Fund Balance Policy formula be replaced by a policy allowing the transfer of undesignated general fund monies not required for cash flow purposes to be transferred into the Street Reconstruction Fund, Capital Improvements Fund, and Technology Fund; and WHEREAS, the Financial Commission has recommended to the City Council approval of the amended Section 2.3 D. Reserve Policies 1. and 2. as set forth in Exhibit A to this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the amended Financial Management Policies Section 2.3 D. Reserve Policies 1. and 2. be and hereby is adopted. December 13. 2004 ate Mayor ATTEST: mAaQ/kOL4~ City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kay Tasman and upon vote being taken thereon, the following voted in favor thereof. Myrna Kragness, Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2004-189 6z h lr,61)-A 2.3 Financial Management Policies D. Reserve Policies I The ...y ' maLitaia an a°c8ipcccea'uizcrtc3cz=rccs-yeitcrc=r'rtrrta V 41{Al1V V in an afneufft deteffaified by applying the AdeqUat-e Getiftei. '--'he ~~ula shall be reviewed anaually by the Gity tGeunei. '!h° r6 „1"s shall be-desigaed te--establish a fited The Citv shall manage its cash flow needs by having a target unreserved and undesignated General Fund balance at the close of each fiscal vear eaual to between 50 and 52% of the next vear's General Fund operating budget. 11 the 7 exeee4-504;eerie-exees ene-year, -Undesignated General Fund monies that are not required for cash flow purposes may be transferred into other funds as may be anpropriate or needed during the fiscal vear. It is specifically anticipated that transfers will be made to the Street Reconstruction Fund. Capital Improvements Fund and the Technology Fund when operating results generate a surplus of actual revenues over actual expenditures to serve as a recurring source of funding for those 3 funds.