CCP 06-26-2012 - Laserfiche WebLink

Home Browse Search

V. UNRESERVED,UNDESIGNATED FUND BALANCE A. It is the intent of this policy to keep the General Fund's unreserved,undesignated fund balance to a minimum. The fund balance of the General fund will fluctuate from year to year depending upon the overall results of operations compared to the budget. Budgets may vary from one year to the next as well. As a result the designated amount of the fund balance may be more than adequate one year but deficient in the next. Reacting to each year's variance should be thoughtful and deliberate. B. Deficits are to be avoided. Elimination of deficits in fund balance will be addressed during the budget process. The subsequent year's budget should address the method to eliminate the deficit. C. Surpluses may be utilized in subsequent years' budgets. Subsequent years' budgets may utilize up to 20% of the amount over the targeted balance. This will allow the balance to be in compliance with the intent of this policy gradually over five years, while allowing for future years' fluctuations. VI. CLOSED BOND FUND It is the intention of this policy that each year the projected investment earnings of the Closed Bond Fund will be used to provide supplemental financing for debt service tax levies. VII. ENVIRONMENTAL RESTORATION FUND It is the intention of this policy that each year the projected investment earnings of the Environmental restoration Fund will be used to provide supplemental financing for debt service tax levies. VIII.REPORTING The Finance Director shall report to the City Council,upon completion of audit field work, the status of the fund balance of the General Fund. This report will state the General Fund's fund balance at the close of the year with reservations and designations along with an explanation of changes in the reservations and designations levels. Page 3 of 4 IX. AUTHORITY