RES 1995-17 - 0000283725
' RESOLUTION NO. 17 - 1995
RESOLUTION DESIGNATING MINIMUM FUND BALANCES FOR THR
GENERAL FUND, SPECIAL REVENUE FUNDS AND THE CAPITAL
IMPROVEMENT FUND
WHEREAS, the City Council of the City of Fridley has previously adopted
Resolution No. 46 -1991 designating minimum fund balances; and
WHEREAS, the timing difference between cash receipts and cash disbursements
continues to create cash flow deficiencies unless sufficient fund balance
levels are designated to meet the working capital needs in the first half of
the year ; and
WHEREAS, unforeseen reductions in major intergovernmental revenues or
unanticipated expenditure needs remain a recurring threat to cities; and
WHEREAS, establishment of a minimum designation of fund balance for such
contingencies would mitigate the adverse effects of aid reductions or
unanticipated expenditures; and
WHEREAS, anticipated uses of fund balances for planned future obligations
should be disclosed in the financial statements by designation of fund
' balance; and
WHEREAS, formal establishment of minimum fund balance levels helps maintain
the City's favorable bond rating which translates into lower borrowing costs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley that
to the extent of available fund balance, that designations of fund balance be
established at the end of each year in the order set forth below:
GENERAL FUND
1. A designation for working capital equalling 608 of the ensuing
year's budgeted local government aid plus the property tax levy
(including any state paid portion);
2. A designation for subsequent years' expenditures for uses of fund
balance as set forth in the ensuing year's adopted budget;
3. A designation for contingencies equal to 108 of the General Fund
budgeted expenditures and other financing uses for the ensuing year;
4. A designation for replacement of fixed assets in an amount not less
than 108 of the General Fund investment in General Fixed Assets as
identified in the Comprehensive Annual Financial Report.
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' Page 2 -- Resolution No. 17 - 1995
SPECIAL REVENUE FUNDS
1. A designation for subsequent years' expenditures for uses of fund
balance as set forth in the ensuing year's adopted budget;
2. A designation for subsequent years' expenditures for the balance of
the Cable TV equipment grant;
3. A designation for cable TV program for the remaining fund balance in
the Cable TV Special Revenue Fund;
4. A designation for solid waste abatement equal to the fund balance in
the Solid Waste Abatement Special Revenue Fund;
5. A designation for drug and gambling enforcement in the Drug and
Gambling Forfeiture Special Revenue Fund equal to the entire fund
balance;
6. A designation for housing programs for the entire fund balance of
the Housing Special Revenue Funds.
CAPITAL IMPROVEMENT FUND
' 1. A designation for fixed asset replacement equal to the balance in
the general portion of the capital improvement plan;
2. A designation for park improvements equal to the balance in the park
portion of the capital improvement plan;
3. A designation for street improvements equal to the balance in the
street portion of the capital improvement plan.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 13TH DAY OF
FEBRUARY, 1995.
ATTEST:
WILLIAM A. CHAMPA - CITY CLERK
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WILLIAM t7. NEE - MAYOR